Kentucky Trucking Renews Ton-Mile Tax Fight

January 17, 2001 10:34 AM, EST

A resolution has been introduced in the Kentucky House of Representatives that, if adopted, would begin anew the fight over that state’s ton-mile and usage taxes.

State Rep. Jack Coleman is asking the legislature’s Interim Joint Committee on Appropriations and Revenue to study the elimination or modification of Kentucky’s two main truck taxes.

Kentucky repealed its weight-distance tax in 1986 and replaced it with a “cab card” user fee, but reinstated the mileage-based tax in 1988 when the replacement tax was found to be illegal. Since then the Kentucky Motor Transport Association has been trying to have the weight-distance tax overturned once again.

The usage tax, which the association also opposes, is based on the state’s 6% sales tax and is levied on the purchase price of trucks and trailers. It is referred to as a usage tax because under Kentucky’s constitution a sales tax cannot be earmarked for specific purposes and must go into the general fun, while revenue from a “usage” tax goes directly into the state’s road fund.

For the full story, see the Jan. 15 print edition of Transport Topics. Subscribe today.