States Float Alternative Tax Sourcing Model for Trucking

A Multistate Tax Commission work group presented an alternative model for assigning taxes on the trucking industry Wednesday, despite one trade group’s recent demand that the tax agency drop the project.

The commission’s Model Receipts Sourcing Regulation Review work group is examining how trucking receipts across multiple states are sourced to each jurisdiction for tax purposes. The group presented a discussion draft containing language that could be added to the intergovernmental tax agency’s model apportionment formula and general rule for the trucking industry.

Most states have implemented mileage-based sourcing regimes for the industry, but the proposed language describes an alternative ...