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Senate Bill Seeks to Repeal Tax on Heavy Duty Trucks and Trailers

A bill was recently introduced in the senate that would repeal a 12 percent excise tax on the sale of heavy duty trucks and trailers, Truckinginfo reported. Here are the details.

  • S. 3052 was introduced by Sen. Cory Gardner (R-CO) on June 12. It is similar to the Heavy Truck, Tractor and Trailer Retail Federal Excise Tax Repeal, H.R. 2946, which was introduced last year into the House of Representatives, and currently has 17 co-sponsors.
  • The Federal Excise Tax on the sale of heavy duty trucks and trailers was passed as a 3 percent tax in 1917, and was initially intended to help fund military operations during World War I. Over the years, the tax has increased to 12 percent.
  • According to the American Truck Dealers division of the National Automobile Dealers Association, the tax currently adds up to $22,000 to the purchase price of a new heavy duty truck. It is, the American Truck Dealers division notes, the highest excise tax to be levied on the sale of any product, including alcohol and tobacco.
  • Upon the introduction of H.R. 2946 in June, 2017, Rep. Doug LaMalfa (R-CA) stated that the "tens of thousands of dollars" that the tax is costing those purchasing heavy duty trucks has a direct impact on the price that Americans pay for food and consumer goods.
  • Further, LaMalfa noted, the tax was paid on trucks regardless of whether they were generating revenue or not.
  • The American Truck Dealers division reported at the time of the House bill's introduction that the tax not only prevents companies from investing in new equipment, but also hampers the development of new heavy duty truck technologies.
  • In addition to the American Truck Dealers division, both bills have garnered support from a number of businesses in the industry, including Bendix, Daimler, Mack, the Truck and Engine Manufacturers Association, and more.

Check back here for more industry news, including updates on the efforts to repeal the federal excise tax on heavy duty trucks and trailers.