How to Claim a Trucking Sales Tax Exemption
Each state offers its own trucking sales tax exemptions for trucks owners who purchase or lease vehicles that satisfy the state's requirements. More than just completing the form, you must make sure that your vehicle satisfies your state's requirements. You also must know how to claim the exemption. Here's how.
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Instructions
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Determine whether or not your vehicle can benefit from the trucking sales tax exemption. Visit your state's tax and finance department website. Review your state's qualifications.
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Complete the trucking sales tax exemption form, also known as a Commercial Distribution Fee form (CDF) in some states. Forms are usually available as downloads from your tax and finance department's website. The instructions are either a part of the form, or you can view them on the state's website.
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Present the completed trucking sales tax exemption form when purchasing a qualified vehicle in order to purchase items tax-free. Some states refer to the form as a certificate.
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Retain a copy of your tax exemption form with your accounting records. You eventually need it when filing taxes or in the event of a tax audit.
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Tips & Warnings
Some states specifically allow tax breaks for the sales or lease of new or used commercial trucks, tractors, semi's or a combination there of. The gross vehicle weight on these vehicles may vary from state to state, so check with your state's department of tax and finance to ensure that the vehicle you want to buy qualifies.
Tax exemptions apply on a state level. You may still be subject to local taxes.
