Businesses Object to Alternative Tax-Sourcing Model for Trucking

Business interests questioned the direction of a Multistate Tax Commission project for assigning taxes on the trucking industry, warning Tuesday that “the road to hell” is paved with alternative state taxation models.

At the commission’s spring meeting in Kansas City, Mo., attorneys representing business taxpayers took issue with a recent decision by the intergovernmental tax agency’s Model Receipts Sourcing Regulation Review work group to develop two state models for the sourcing, or assigning, of trucking receipts across multiple jurisdictions for tax purposes.

While most states have implemented mileage-based sourcing regimes for the industry, the work group recently circulated a discussion ...