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Thursday, January 26, 2023

A New US Senate Bill Seeks To Repeal The Federal Excise Tax On The Sale Of Trucks, Trailers


U.S. Sen. Cory Gardner (R-Colo.) has introduced a bill to repeal the 12-percent federal excise tax on the sale of heavy-duty trucks and trailers.

The FET, which was originally imposed in 1917 to help pay for World War I, has grown from 3 percent to 12 percent and adds $12,000 to $22,000 on the price of a new heavy-duty truck.

“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. Gardner. “I was happy to introduce legislation to repeal it.”

This new bill is similar to the “Heavy Truck, Tractor and Trailer Retail Federal Excise Tax Repeal Act” introduced by U.S. Rep. Doug LaMalfa (R-Calif.) in June 2017. The House bill currently has 17 bipartisan cosponsors.

Next week, the American Truck Dealers, a division of the National Automobile Dealers Association, will host its annual ATD Legislative Fly-In to Capitol Hill to rally bipartisan support for both the Senate and House bill.

“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.”

In addition to ATD, other supporters of the FET repeal include Baker Commodities, Bendix Commercial Vehicles, Daimler Trucks North America, Mack Trucks, National Trailer Dealers Association, Navistar, NTEA – The Association for the Work Truck Industry, Truck & Engine Manufacturers Association, Truck Renting and Leasing Association, Truck Trailer Manufacturers Association and Volvo Trucks North America.

The American Trucking Associations points out that, although they agree the FET is not a good thing for their members and discourages investment in new and safe trucks and equipment, it does provide money for building and repairing infrastructure. The organization says it doesn’t support repealing the FET without replacing the lost income in the Highway Trust Fund.

Meanwhile, in Canada, Canadians are faced with economy killing carbon tax.