A new bill introduced by U.S. Sen. Cory Gardner (R-CO) would repeal the 12 percent federal excise tax on the sale of heavy-duty trucks and trailers — an effort which has already received applause from many sides of the trucking industry.
Similar efforts to S.B. 3052 have been attempted in the past, most recently in the form of U.S. Rep. Doug LaMalfa’s (R-CA) attempt in June 2017. While that effort ultimately failed, Gardner’s has begun with 17 cosponsors. The legislation will also benefit from the rallied support of the American Truck Dealers (ATD) during their annual ATD Legislative Fly-In next week.
“This burdensome tax creates excessive costs that are passed on to truckers, who play an essential role in maintaining our nation’s economy,” Gardner said. “I was happy to introduce legislation to repeal it.”
While the federal excise tax originally helped pay for World War War after its introduction in 1917, the industry has chafed at its growth from a tax of 3 percent to 12 percent. It can add anywhere from $12,000 to $22,000 to the price of new heavy-duty trucks.
“It is the highest excise tax Congress levies on a percentage basis on any product, including alcohol and tobacco,” ATD Chairwoman Jodie Teuton said. “It’s time for Congress to repeal this tax, and we thank Sen. Gardner for his leadership on this important issue.”
In addition to ATD, the effort has garnered the support of Mack Trucks, the National Trailer Dealers Association, Navistar, the Association for the Work Truck Industry, Recreation Vehicle Dealers Association, Truck & Engine Manufacturers Association, Truck Renting and Leasing Association and Truck Trailer Manufacturers Association, among others.
At present, the bill has been referred to the Senate Finance Committee for further consideration.