TAX FILE: All tax burdens are not created equal

July 1, 2003
The new federal tax law (see Bottom Line, p. 24) will have varied effects on carriers' state tax burdens. In general, states with income taxes use the federal definition of income. But more and more states require taxpayers to depreciate equipment under less generous rules than the federal government now permits. Unless the economy picks up, more states will be turning to increases in taxes and fees

The new federal tax law (see “Bottom Line,” p. 24) will have varied effects on carriers' state tax burdens. In general, states with income taxes use the federal definition of income.

But more and more states require taxpayers to depreciate equipment under less generous rules than the federal government now permits. Unless the economy picks up, more states will be turning to increases in taxes and fees to offset their falling revenues.

However, the new tax bill also provides a one-time grant of $20 billion to states and localities. That will ease the budget crisis enough that some governors now say they will not need to raise taxes this year.

About the Author

KEN SIMONSON

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...

Fleet Industry Benchmarks: How does your fleet stack up?

Discover how your fleet compares to industry benchmarks and gain insights from a 2024 Benchmarking Report on maintenance spend, turnaround time, and more. Join us to identify ...

Build a Tolling Program to Manage Toll Fees and Risks

Fleets looking to effectively manage their operational costs should consider their tolling costs. Download the PrePass whitepaper, “Build a Tolling Program to Manage Toll Fees...

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...