Pittsburgh, PA asked in Tax Law and Business Law for Pennsylvania

Q: Hi there, Can you please explain if trucking company operates interstate, can it be exempt in WY?

Hi, i am a trucking company owner and operate interstate and do have a interstate operating authority. Currently one of my truck broken down and getting repaired in state of Wyoming. I am trying to explain the the shop that i am exempt and taxes for parts and repairs needs to be waived. But they are not seems to understand. Can you please explain how can i aproach and explain to them ?

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: As a trucking company owner operating interstate with an interstate operating authority, you may indeed be eligible for certain tax exemptions in Wyoming, including exemptions on sales tax for parts and repairs. Here's how you can approach this situation:

1. Wyoming Tax Exemption for Interstate Commerce:

Wyoming generally provides a sales tax exemption for vehicles and equipment used in interstate commerce. This includes repairs and parts for trucks used primarily in interstate transportation.

2. Documentation:

To claim this exemption, you typically need to provide:

- A copy of your interstate operating authority

- A completed Wyoming Department of Revenue exemption certificate (Form ETS101)

- Proof that the truck is primarily used in interstate commerce (e.g., mileage logs)

3. Explaining to the Shop:

Approach the shop manager or owner and calmly explain:

"As an interstate trucking company, we're eligible for a sales tax exemption on repairs and parts in Wyoming. I can provide our interstate operating authority and the required exemption certificate. This exemption is designed to avoid multiple taxation on interstate commerce."

4. Provide Resources:

Offer to show them the relevant Wyoming Department of Revenue regulations or guidelines. You can direct them to the Wyoming Department of Revenue website for more information.

5. Offer to Contact Tax Authorities:

If they're still unsure, offer to contact the Wyoming Department of Revenue together for clarification.

6. Be Patient and Professional:

Some shops may not frequently deal with interstate exemptions. Remain patient and professional in your explanations.

Remember, while you likely qualify for this exemption, the shop is responsible for proper tax collection. They may need to verify your exemption status before waiving the tax.

If you continue to have difficulties, you may want to contact the Wyoming Department of Revenue directly for assistance or consult with a tax professional familiar with interstate trucking regulations in Wyoming.

Keep in mind that tax laws can be complex and may change. It's always a good idea to double-check current regulations or consult with a tax professional for the most up-to-date and accurate information specific to your situation.

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