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Bill aims to repeal 12% federal truck sales tax

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Jason Cannon, Commercial Carrier Journal (CCJ)  /  June 21, 2017

U.S. Rep. Doug LaMalfa (R-Calif.) introduced Tuesday a bill that seeks to repeal the federal excise tax (FET) on the retail sale of most heavy-duty trucks, tractors and trailers.

Bills similar to H.R. 2946, “Heavy Truck, Tractor and Trailer Retail Federal Excise Tax Repeal Act of 2017,” have been introduced over the past several years, with none gaining enough traction to get the 12-percent tax removed from the sticker price of the truck. LaMalfa’s bill now heads to the House Ways and Means Committee.

“The excessive 12-percent federal excise tax on heavy trucks adds tens of thousands of dollars to truck purchases and directly impacts the cost of food, consumer goods and other products Americans need,” LaMalfa says. “Even worse, truck owners large and small pay this tax whether a truck is driven 100,000 miles or never driven at all, forcing them to pay taxes on an investment that may not be generating any revenue.

“The 12-percent federal excise tax on heavy-duty trucks in the highest percentage rate of any federal excise tax that Congress levies, and it adds $12,000 to $22,000 to the price of a new heavy-duty truck,” adds American Truck Dealers (ATD) Chairman Steve Parker, who is also the president of Baltimore Potomac Truck Centers. “The FET depresses new heavy-duty truck sales and delays the deployment of cleaner, safer and more fuel-efficient trucks.”

Rep. LaMalfa’s bill has the support of ATD, which represents more than 1,800 U.S. commercial truck dealers. The group is hosting its annual legislative fly-in to Washington, D.C., this week to rally congressional support for the legislation.

LaMalfa says repealing the truck tax will help small businesses invest in new equipment and jump-start domestic manufacturing, while also reforming an outdated tax code. The FET was originally imposed in 1917 to help defray the cost of World War I. The tax has grown from 3 percent, when it was incorporated into the Highway Trust Fund in 1955, to 12 percent today.

Parker called on Congress to include H.R. 2946 in the upcoming tax reform bill.

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New legislation aims to repeal federal excise tax on trucks

Fleet Owner  / June 21, 2017

Originally introduced in 1917 to help defray the costs of World War I, the FET now stands at 12%.

U.S. Representative Doug LaMalfa (R-CA) introduced a bill this week that seeks to eliminate the 12% federal excise tax or “FET” most heavy-duty trucks, tractors and commercial trailers – a levy the American Truck Dealers (ATD) group claims can add anywhere from $12,000 to $22,000 to the sticker prices for such equipment.

“The excessive 12% FET on heavy trucks adds tens of thousands of dollars to truck purchases and directly impacts the cost of food, consumer goods and other products Americans need,” Rep. LaMalfa noted in a statement.

“Even worse, truck owners large and small pay this tax whether a truck is driven 100,000 miles or never driven at all, forcing them to pay taxes on an investment that may not be generating any revenue,” he stressed.

“Repealing the truck tax will help small businesses invest in new equipment while jump-starting domestic manufacturing and Congress should address this issue as we consider how to reform our outdated tax code,” Rep. LaMalfa added.

“The 12% FET on heavy-duty trucks in the highest percentage rate of any federal excise tax that Congress levies,” noted ATD’s Chairman Steve Parker in a statement. “The FET depresses new heavy-duty truck sales and delays the deployment of cleaner, safer and more fuel-efficient trucks.”

Rep. LaMalfa’s bill – H.R. 2946 and dubbed the Heavy Truck, Tractor and Trailer Retail Federal Excise Tax Repeal Act of 2017 – follows a similar effort to eliminate the FET attempted five years ago.

ATD noted that the FET was originally imposed in 1917 to help defray the cost of World War I. The tax has grown from 3%, when it was incorporated into the Highway Trust Fund in 1955, to its 12% level today.

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At what GVW does the FET kick in ? When my partner and I bought our hotshot truck and trailer in 88, we were licensed for 50,000, we paid no FET.

 

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The last new truck I bought I paid $30,000 in Federal and state taxes. 

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9 hours ago, Dirtymilkman said:
The last new truck I bought I paid $30,000 in Federal and state taxes. 


But we don't pay "our fair share" to maintain the roads that we use. Another good reason to keep an old truck.

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House Bill Would Repeal Heavy-Truck Federal Excise Tax

David Cullen, Heavy Duty Trucking  /  June 21, 2017

A new effort to ax the 12% federal excise tax on most heavy-duty trucks, tractors, and trailers has been mounted on Capitol Hill by Rep. Doug LaMalfa (R-CA). He introduced the Heavy Truck, Tractor and Trailer Retail Federal Excise Tax Repeal Act of 2017 (H.R. 2946) on June 20, a bill that would repeal the FET on the retail sale of trucking equipment.

“The excessive 12% federal excise tax on heavy trucks adds tens of thousands of dollars to truck purchases and directly impacts the cost of food, consumer goods and other products Americans need,” Rep. LaMalfa said in a statement. “Even worse, truck owners large and small pay this tax whether a truck is driven 100,000 miles or never driven at all, forcing them to pay taxes on an investment that may not be generating any revenue.

“Repealing the truck tax will help small businesses invest in new equipment while jump-starting domestic manufacturing.” He added that removing the truck FET should be considered by the House Ways and Means Committee when it drafts legislation to reform the overall tax code.

The FET was originally imposed in 1917 to help defray the cost of World War I. The tax has grown from 3%, when it was incorporated into the Highway Trust Fund in 1955, to 12% now.

The American Truck Dealers, a division of the National Automobile Dealers Association, applauded LaMalfa’s bill.

“The 12% federal excise tax on heavy-duty trucks is the highest percentage rate of any federal excise tax that Congress levies, and it adds $12,000 to $22,000 to the price of a new heavy-duty truck,” said ATD Chairman Steve Parker, who is president of Maryland-based Baltimore Potomac Truck Centers. “The FET depresses new heavy-duty truck sales and delays the deployment of cleaner, safer and more fuel-efficient trucks.”

Parker also called the FET “essentially a tax on American jobs,” stating that the tax “hurts truck sales and inhibits job growth, directly affecting the 7.3 million Americans employed in the U.S. trucking industry. Congress should include H.R. 2946 in the upcoming tax reform bill. A repeal of the FET will spur new-truck sales and get our economy moving.”

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Repealing the excise tax would be good policy, ending an unfair taxation of a class of vehicles that makes no sense. However, a slight increase in the fuel tax or a ton mile tax to make the proposal revenue neutral can be expected.

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Sounds like a deal!

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Senate Bill Aims to Repeal Federal Excise Tax on Heavy-Duty Trucks and Trailers

David Cullen, Heavy Duty Trucking (HDT)  /  June 13, 2018

A bill introduced in the Senate on June 12 is the latest attempt to repeal the12% federal excise tax (FET) on the sale of heavy-duty trucks and trailers. The FET-- originally imposed in 1917 to help finance U.S. military operations in World War I-- has grown steadily over the years. It currently tacks $12,000 to $22,000 onto the price of a new heavy-duty truck, according to the American Truck Dealers division of the National Automobile Dealers Association.

“This burdensome tax creates excessive costs that are passed on to truckers, who play an essential role in maintaining our nation’s economy,” said Sen. Cory Gardner (R-CO), who is the sponsor of the new bill (designated S. 3052), which seeks to amend the Internal Revenue Code of 1986. “I was happy to introduce legislation to repeal it.”

ATD noted in a statement supporting the Senate bill that it is similar in scope to the Heavy Truck, Tractor and Trailer Retail Federal Excise Tax Repeal Act (H.R. 2946), introduced by Rep. Doug LaMalfa (R-CA) in June 2017, which ATD also supports. The House bill currently has 17 bipartisan cosponsors.

The dealer association said that from June 20-21, it will host its annual ATD Legislative Fly-In to Capitol Hill to rally bipartisan support for S. 3052 and H.R. 2946.

“It is the highest excise tax Congress levies on a percentage basis on any product, including alcohol and tobacco,” said ATD Chairwoman Jodie Teuton, vice president of Kenworth of Louisiana and Hino of Baton Rouge. “It’s time for Congress to repeal this tax, and we thank Sen. Gardner for his leadership on this important issue.”

ATD noted that other supporter of FET repeal include Bendix Commercial Vehicles, Daimler Trucks North America, Mack Trucks, National Trailer Dealers Association, Navistar, NTEA, Truck & Engine Manufacturers Association, Truck Renting and Leasing Association, Truck Trailer Manufacturers Association, and Volvo Trucks North America.

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