The Truck Renting and Leasing Association has teamed up with the Motor Transport Association of Connecticut to fight against the state’s proposed repeal of the property tax exemption for commercial trucks. Connecticut Gov. Daniel Malloy recently released a proposed budget that includes a provision to repeal the exemption.
TRALA and MTAC say the proposal would create a dramatic increase in the cost for members of both groups to do business in Connecticut. Malloy’s proposed budget would repeal the property tax exemption effective July 1.
TRALA wrote to Malloy and the co-chairs of the Connecticut Finance, Revenue and Bonding Committee to explain the negative impacts that a repeal of the property tax exemption would have on the commercial transportation industry. In its letter, TRALA explains how a property tax on commercial trucks will force TRALA members to pass those costs on to its customers, and in turn raise the cost of commercial transportation.
There are currently 27 states that have property tax exemptions for commercial trucks used in interstate commerce, including Connecticut. TRALA’s letter states that repealing this exemption would put Connecticut businesses at a competitive disadvantage compared to businesses in the nearby states of New York, Rhode Island, Vermont, New Jersey and Pennsylvania.
TRALA also wrote that it believes that repealing this exemption will slow the introduction of newer, more expensive environmentally-friendly model year 2010 and newer trucks into service in Connecticut.