The Modernize the Truck Fleet (MTF) coalition recently announced its support for legislation that would repeal a federal excise tax established in 1917 to help pay for the costs associated with World War I.
MTF requests the bill, the Modern, Clean and Safe Trucks Act of 2019, be included in a Congressional infrastructure modernization bill.
“The federal excise tax is an outdated burden to small businesses looking to invest in our transportation industry,” Rep. Collin Peterson (D-MN). “Repealing this tax would encourage new, and cleaner fuel-efficient vehicles on our roads.”
The tax was 3 percent a century ago and is now 12 percent. This adds between $12,000 to $22,000 to the cost of a new heavy-duty truck or trailer, discouraging many shippers’ ability to make purchases.
Peterson cosponsored the bill with Rep. Doug LaMalfa (R-CA). The legislation is currently under consideration in the House Ways and Means Committee.
The coalition supports not only the repeal of the tax but finding a replacement to sustain the Highway Trust Fund. The coalition was founded earlier this year. Its members include National Tank Truck Carriers, the Truck and Engine Manufacturers Association, the National Trailer Dealers Association, and the Truck Renting and Leasing Association.