Trucking association pushes sales‑tax exemption for interstate rolling stock to attract terminals and cleaner trucks
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Summary
The Transportation Association of Massachusetts urged the Joint Committee on Revenue to exempt interstate‑use trucks and trailers from the state sales and use tax, arguing an exemption would modernize fleets, attract terminals and ultimately raise net tax receipts by encouraging industry growth.
The Transportation Association of Massachusetts (TAM) asked the Joint Committee on Revenue to advance H.3066, a bill that would exempt rolling stock (tractor and trailer equipment used in interstate commerce) from Massachusetts sales and use tax.
Kevin Weeks, TAM’s executive director, said Massachusetts is one of 13 states that taxes rolling stock and that the tax discourages firms from locating or expanding terminals in the Commonwealth. TAM argued an exemption would encourage replacement of older, high‑emissions trucks (approximately 50% of trucks in the state are pre‑2010, witnesses said), improve air quality and safety and increase competitiveness with neighboring states. Weeks cited an independent Northeastern University study estimating a $15–$30 million increase in tax revenue from industry expansion if Massachusetts enacted the exemption.
Committee members asked about environmental tradeoffs and whether incentives should be targeted to zero‑emission or cleaner fleets. Weeks said the exemption would lower the marginal cost of buying new equipment and that newer trucks carry better safety features and lower emissions; he framed the proposal as a long‑term economic development strategy rather than a targeted subsidy.
The committee took testimony and did not vote on the bill during the hearing.