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Government Affairs

MTA Successfully Works to Pass Anti-Indemnification Bill

Michigan has become the latest state to pass legislation protecting truckers from shipping contracts that require the motor carrier to shoulder all responsibility for accidents even though they may not be at fault.

Senate bill 873, sponsored by James Marleau (R), Lake Orion, passed in the Senate in September and the House of Representatives on December 6, 2012. Governor Snyder signed the bill into law as Public Act 480.  Review Public Act 480.

Michigan Trucking Association sought passage of this legislation to ban shipping contracts that force carriers to assume all liability for accidents regardless of whether the carriers are at fault.

MTA would like to acknowledge and thank the McKinley Group, James Burg Company and Great West Casualty Company for their testimony before the Senate Transportation Committee and support for the passage of this important legislation.

For more information please contact Executive Director Walter Heinritzi.

MTA Successfully Works to Pass Sales and Use Tax for Interstate Motor Carriers

The Michigan Senate passed House Bills 5444 and 5445 which amend the General Sales Tax Act and Use Tax Act, respectively, to clarify that after-market purchases of parts by for-hire interstate trucking companies are exempt from sales/use taxes.

In 1999, the Michigan Legislature enacted two laws granting full sales and use tax exemptions on rolling stock to interstate motor carriers. Rolling stock is defined as "a qualified truck, a trailer designed to be drawn behind a qualified truck, , and parts affixed to either a qualified truck or trailer to be drawn behind a qualified truck."

The 1999 statutes did not defined "parts" and the Michigan Department of Treasury had issued an Internal Policy Directive instructing its auditors to tax accessories mounted to a truck or trailer that were not original to the equipment that was purchased.

Michigan Trucking Association believed that there are numerous accessories that are installed after-market and physically mounted that should be exempt from sales and use tax. Examples are: auxiliary power units, power inputers, communication devices, trailer rollers mounted to the floor of a trailer, trailer belly fairing, and, but not limited to, hydraulic lift kits that lower the hitch eliminating the need to raise or lower trailer dolly legs.

MTA sought to change the statute defining parts to include those original to the equipment and all those attached after the original equipment manufacturer. Following a nearly two-year effort, Governor Snyder signed the bills into law. The sales and use tax exemptions are now Public Acts 467 and 429 respectively.

For more information please contact Executive Director Walter Heinritzi.

Michigan Trucking Association
1131 Centennial Way - Lansing, MI 48917
Phone (517) 321-1951 - Fax (517) 321-0884