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Senate Action Opposes Federal Excise Tax Increase

June 01, 2016

Sen. Cory Gardner
Sen. Cory Gardner

Sen. Cory Gardner (R-Colo.) introduced Senate Concurrent Resolution 40 (S.Con.Res.40), expressing opposition toward increasing the 12% Federal Excise Tax (FET) on heavy trucks and truck bodies, according to the NTEA.

In 2015, House Representatives Reid Ribble (R-Wis.) and Tim Walz (D-Minn.) introduced companion legislation, H.Con.Res.33. Although concurrent resolutions do not have the force of law, they can make a strong statement.

“NTEA commends the Senate on the introduction of this legislation,” said Steve Carey, NTEA executive director. “FET is a complicated tax which deters the purchase of the cleanest, safest, and most fuel-efficient trucks. It is a volatile, undependable funding mechanism for the U.S. highway system, and preventing further increases to this tax is critical.”

FET is imposed on the first retail sale of heavy-duty trucks, trailers, semitrailer chassis and bodies, and tractors — trucks with a gross vehicle weight rating (GVWR) of more than 33,000 pounds; tractors with a GVWR of more than 19,500 pounds and gross combined weight of 33,000 pounds or less when paired with a trailer or semitrailer; and trailers with a GVWR of more than 26,000 pounds. The funds derived from it are deposited in the Highway Trust Fund.

The 12% FET, the highest federal ad valorem excise tax (based on the value of real estate or personal property), was first levied to help finance World War I. S.Con.Res.40 and H.Con.Res.33 help to educate members of Congress about FET-related problems and explain why it should not be increased.

Comments

  1. 1. Gary Riggs [ June 02, 2016 @ 02:03PM ]

    I would be more impressed if the congressman moved toward abolishing the tax entirely. We have one of the world's highest overall tax rates now. Having the government spend our money is not a wise choice.

  2. 2. Chuck [ June 07, 2016 @ 08:30PM ]

    "Levied to help fund World war 1" ........Geez...and like everything else govt. ...once they get something it NEVER goes away !!

 

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