Case Study: National Trucking Company Loads Up on Refunds

$170,000 in Total Savings for this Trucking Company

Background

This employee-owned truckload common carrier of general commodities is headquartered in Minnesota and operates terminals in Georgia, Minnesota, Ohio and Wisconsin.  This trucking company owns a fleet of 600 powered units and over 1,000 trailers and services national accounts including Campbell’s Soup, Dunkin Donuts and Kraft Foods.  It has both a temperature controlled or refrigerated division, as well as a dry van freight division.

Goals

The trucking company was concerned about its management of exemption certificates for over-the-road repairs.  It suspected that there were occasions when the appropriate forms were not distributed, therefore leading to overpayments of sales and use tax.  In addition to the over-the-road repairs, the company wanted to evaluate its compliance with state and local sales and use taxes at its headquarters and four terminal locations.

Agile’s Role

Agile was retained to quantify potential sales tax recoveries across the U.S. as well as evaluate the trucking company’s use tax compliance in the four states where it had its largest physical presence.  Similar to other reviews Agile has conducted for trucking companies, over-the-road repairs yielded most of the savings.  This is generally the case because these repairs are needed at unpredictable times and places.

Agile delivered over $170,000 in total sales and use tax refunds to this trucking company for various qualifying purchases in 22 states.

In addition to the refunds recovered, Agile provided the company with an easy-to-use table listing the exemptions available to the trucking company in the lower 48 states.  See sample excerpt below.  In addition to this table, all relevant sales tax exemption certificates were completed by Agile and provided to the company in a zipped folder.

trucking graph

With Agile’s assistance, this trucking company believes it can now manage its sales and use tax exemptions internally. The company estimates that it is saving approximately $5,000 each month based on the improved knowledge of their in-house staff and the tools and information provided by Agile.

savings by stateResults

  • $170,000 in total savings for this trucking company that operates in the lower 48 U.S. states
  • Identified opportunities for sales and use tax refunds in 22 states; see chart to the right
  • Provided easy-to-use table showing relevant exemptions in each state as well as all relevant sales tax exemption certificates
  • Empowered trucking company’s in-house staff to confidently manage eligible exemptions
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