American Truck Dealers (ATD) Chairman Steve Parker praised the introduction of a bill that would repeal what has been seen as a harmful and outdated federal excise tax (FET) on the retail sale of most heavy-duty trucks, tractors and trailers.
“The 12-percent 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,” Parker said. “The FET depresses new heavy-duty truck sales and delays the deployment of cleaner, safer and more fuel-efficient trucks.”
The Heavy Truck, Tractor and Trailer Retail Federal Excise Tax Repeal Act of 2017, introduced by U.S. Rep. Doug LaMalfa (R-CA), has been unanimously supported by the ATD, a division of the National Automobile Dealers Association, which hosted its annual legislative fly-in to Washington, D.C. earlier this week to rally congressional support for the bill.
“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 said. “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.”
Originally imposed in 1917 to settle the cost of World War I, the FET has grown from 3 percent, when it was incorporated into the Highway Trust Fund in 1955, to 12 percent today.
The legislation now awaits consideration from the House Ways and Means Committee.