Safety

Contractors could be exempt from paying taxes on buses

Posted on April 6, 2010

JACKSON, Miss. — School bus contractors statewide who provide pupil transportation services may soon be exempt from paying ad valorem taxes on their buses.

Under new legislation (HB 1677) that has passed in both the Senate and the House and has been sent to Gov. Haley Barbour for approval, companies that own and operate buses and other vehicles to transport students to and from schools would not have to pay the tax.

The waiver would apply to buses and other vehicles operated by companies that have entered into or renewed a contract with a school board on or after July 1.

Bus companies under contract to school boards to transport students would also be subject to fuel tax exemptions, and they would not have to pay taxes on the parts and labor used to maintain and repair units.

Gov. Barbour has until tomorrow, April 7, to return the bill from his office.

If it is approved, the law would take effect on July 1 and vehicles operated by school bus contractors would join several other types in the state with ad valorem taxes waived, including school district-owned vehicles, antique vehicles and those owned by disabled veterans.

Related Topics: taxes

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