Award-Winning Regional Journal of the Arkansas Trucking Association
Arkansas Trucking Report is owned by the Arkansas Trucking Association, Inc. and is published bimonthly by Matthews Publishing Group. For additional copies, to order reprints of individual articles or to become a subscriber to ATR, contact Katie Thomason at 501.372.3462.
publisher
JENNIFER MATTHEWS KIDD Matthews Publishing Group,
jennifer@matthewspublishing.com executive editor
SHANNON NEWTON
managing editor BETHANY MAY
brawnersteve@mac.com
JENNIFER BARNETT REED
jbreed13@gmail.com JIM HARRIS
jimharris@arktimes.com STEVE BRAWNER
stravis@gmail.com SPENCER WATSON
sswatson@gmail.com
contributing writers art director
JON D. KENNEDY
The Freelance Co. LLC,
freelanceco@comcast.net production editors
SARAH SHEETS, KATIE THOMASON illustrator
BRENT BENNETT
brentdraw@att.net photographers
JON D. KENNEDY, BOB OCKEN, JOHN DAVID PITTMAN
Whether issues of public interest, advancing our image, or addressing an arcane, stealth regulatory change—the power of association can make the difference.
www.arkansastrucking.com president
SHANNON SAMPLES NEWTON
shannonnewton@arkansastrucking.com director of operations
SARAH NEWMAN SHEETS
sarahsheets@arkansastrucking.com
communications coordinator BETHANY MAY
bethanymay@arkansastrucking.com
corporate services coordinator KATIE THOMASON
katiethomason@arkansastrucking.com
CHAIRMAN OF THE BOARD CRAIG HARPER
Executive Vice President & COO BOARD OF DIRECTORS
MARR LYNN BEARDEN Marrlin Transit, Inc. President
Central States Manufacturing, Inc. Transportation Director
GREG CARMAN Carman, Inc. President
P.A.M. Transportation Services, Inc. President & CEO
Star Transportation, Inc. Vice President
Transportation Director
Risk Management and Safety PHILIP MAHONEY
Distribution Solutions, Inc. CEO, Owner
Vice President, Truck Sales MIKE MCNUTT
Truck Centers of Arkansas
Executive Vice President SCOTT MANCHESTER
Great West Casualty Co. Executive Vice President,
JEFF LESTER USA Truck
Tyson Foods, Inc. BLUE KEENE AL HERINGER IV DAN CUSHMAN ALLEN BERRY
Morris Transportation, Inc. President
U of A/Walton College of Business Chair of Transportation
Executive Vice President & COO G.E. “BUTCH” RICE III
Stallion Transportation Group President & CEO
Walmart Transportation Senior Vice President
GARY SALISBURY Fikes Truck Line Chairman & CEO
ABF Freight System, Inc. President & CEO
Wayne Smith Trucking, Inc. President
VICKI JONES STEPHENS C.C. Jones, Inc. President
STEVE WILLIAMS Maverick USA
Chairman & CEO WAYNE SMITH ROY SLAGLE TRACY ROSSER FedEx Freight PAT REED DR. JOHN OZMENT MARK MORRIS J.B. Hunt Transport, Inc.
As many are aware, the Arkansas Department of Finance and Administration (DFA), without legislation, regulation or public comment, recently made an internal administrative determination that it would no longer treat the sale of a commercial truck with an extended warranty as one transaction, but two. This caused the purchase price of extended warranties to be subject to full sales tax.
We became aware of this change when a truck driver who arrived at the revenue department, anticipating a $10.50 title fee instead owed over $700 in sales tax. This owner operator had no choice but to pay the tax so his livelihood could continue. Nor did this owner operator have the time and energy to protest this wrongful charge.
His was not an isolated incident.
That sales tax was charged on over 150 warranties in June and July, all meant to be excluded as part of the sales-tax exemption on commercial truck and trailers our association passed in 2011.
The cost of extended warranties varies greatly, but using a typical range, the taxes levied on these purchase prices across the state were between $350 - $1,000 per truck.
When I became aware of the situation, the association’s legal counsel was quickly engaged to affirm our position that the exemption of extended warranties should continue to apply. Over the next 60 days, the association, staff, lawyers, board members and other liaisons pursued all avenues to undo this abrupt and unjust change.
I was thrilled when we received word that the DFA reversed their decision and rescinded this extra tax due to our efforts. As a result, refunds totaling more than $100,000 are being mailed this month to trucking companies and owner-operators who were overcharged when registering their new trucks. In addition to these refunds, many more thousands were saved by preventing the continuance or worse, back taxes, under this improper tax treatment.
An affiliate of the American Trucking Associations
Arkansas Trucking Association (ATA) is an Arkansas corporation of trucking companies, private carrier fleets and businesses which serve or supply the trucking industry. ATA serves these companies as a governmental affairs representative before legislative, regulatory and executive branches of government on issues that affect the trucking industry. The organization also provides public relations services, workers’ compensation insurance, operational services and serves as a forum for industry meetings and membership relations. For information, contact ATA at: 1401 West Capitol, Suite 185 Post Office Box 3476 (72203) Little Rock, Arkansas 72201 Phone 501.372.3462 Fax 501.376.1810
www.arkansastrucking.com
ARKANSAS TRUCKING REPORT | Issue 4 2014
Drivers Legal Plan Drivers Legal Plan
I wanted to shout, “This is what we do; this is how the power of association can—and does—deliver!”
I hope you’ll join me in celebrating this shared victory—your victory— with all of the trucking companies who choose to do business in Arkansas and register their equipment here.
It’s what we do. And you are why we do it.
Shannon Newton President
Arkansas Trucking Association 7
jdschulz@aol.com SCOTT TRAVIS
JOHN SCHULZ
Sure, I can recite the mission statement. Rooted in our core value of service to our membership, it adequately states our primary objective to protect, promote and inform on our member’s behalf.
But the mission statement alone doesn’t explain how or why. It doesn’t capture the power—power that delivers meaningful and far-reaching impact through our association and the industry in Arkansas.
UP FRONT
WHAT WE DO. WHY WE DO IT. I’ve worked for the Arkansas Trucking Association for over a decade now. You would think I’d have a handy elevator pitch that succinctly conveys the essence of what it is we do.
Yet, I don’t. Not one I’m completely satisfied with anyway.
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