U.S. Sen. Cory Gardner (R-Colo.) has introduced a bill to repeal the 12-percent federal excise tax (FET) on the sale of heavy-duty trucks and trailers, a move heavily applauded by the American Truck Dealers association.
ATD says federal excise tax on commercial trucks and buses was originally imposed in 1917 to help pay for World War I. It 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,” states Sen. Gardner. “I was happy to introduce legislation to repeal it.”
S. 3052 is similar to the “Heavy Truck, Tractor and Trailer Retail Federal Excise Tax Repeal Act” (H.R. 2946) introduced by U.S. Rep. Doug LaMalfa (R-Calif.) in June 2017. The House bill currently has 17 bipartisan cosponsors.
“It is the highest excise tax Congress levies on a percentage basis on any product, including alcohol and tobacco,” says 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, Recreation Vehicle Dealers Association, Truck & Engine Manufacturers Association, Truck Renting and Leasing Association, Truck Trailer Manufacturers Association and Volvo Trucks North America.