Business License Tax - Reminder - Know Your Rights

Recently CTA has received a few calls from a couple of members informing us that they had received a notice from a local municipality stating that they owed a City or County business license fee for operating within their jurisdiction. As you know cities and counties are prevented from assessing such a fee on for hire motor carriers because they pay that fee through their Motor Carrier Permit. If your company has a valid MCP you are not subject to this fee. For over a quarter century local municipalities have been prohibited from licensing and taxing business conducted by for hire motor carriers. One example was a city was attempting to assess a per truck fee that was servicing a business located in their city. This is a no-o and CTA contacted the city and the city rescinded its proposal. Unfortunately CTA only finds out about these proposals after our member companies have received a notice. If your company receives a notice stating that you owe a fee contact CTA and we will take care of the issue and educate the city about Revenue Tax Code Sections 7233 and 7234. Contact Eric Sauer at esauer@caltrux.org for more information.