Examples: Motor transportation

Example 1

Speedy Trucking is hired to pickup office furniture in City A and then deliver it to City C. The total mileage from the pickup point to the delivery point is twenty miles. The carrier will use a direct route from City A, through City B, and deliver the goods in City C. City B’s corporate limits are within five miles of both City A and C.

The motor transportation tax applies because the corporate limits of City A and City C are more than 5 miles apart.

Example 2

Speedy Trucking is hired to transport goods from City A to City B. The total mileage between the pickup point and delivery point is fifteen miles. There is 10 miles between the corporate limits of City A and City B.

The motor transportation tax applies because the corporate limits of City A and City B are more than five miles apart.

Example 3

Speedy Trucking is hired to transport goods from City A to a farm 6 miles outside of City A.

The motor transportation tax applies because the destination is not within five miles of the corporate limits of City A.