Minnesota House Exempts Trucks From Accelerated Lease Tax
TRALA, the Truck Renting and Leasing Association, announced on May 6 that the Minnesota House of Representatives passed an omnibus tax bill including a TRALA-supported provision to exempt vehicles greater than 10,000 pounds from an accelerated lease tax. The accelerated lease tax, initiated by Minnesota Governor Tim Pawlenty, would require vehicle lessors to collect all taxes up front at the time of the lease agreement signing instead of through monthly payments over the course of the lease. The Minnesota State Senate already passed an accelerated lease tax proposal. TRALA contacted state Rep. Ron Abrams, chairman of the House Committee on Taxes and the lead sponsor of the tax bill, urging him to exempt trucks from the accelerated lease tax. TRALA is also working closely with the Minnesota Trucking Association and outside counsel to ensure that the truck exemption language is included in the final tax package that emerges from the forthcoming conference committee.