Legislation that would repeal the 12% federal excise tax on certain heavy-duty trucks, tractors and trailers was unveiled last week by Rep. Doug LaMalfa (R-Calif.).
The repeal would apply to the retail sale of trucking equipment.
“The excessive 12% federal excise tax on heavy trucks adds tens of thousands of dollars to truck purchases and directly impacts the cost of food, consumer goods and other products Americans need,” LaMalfa said. “Even worse, truck owners large and small pay this tax whether a truck is driven 100,000 miles or never driven at all, forcing them to pay taxes on an investment that may not be generating any revenue. Repealing the truck tax will help small businesses invest in new equipment while jump-starting domestic manufacturing, and Congress should address this issue as we consider how to reform our outdated tax code.”
The legislation was referred to the tax policy Ways and Means Committee in the U.S. House. The American Truck Dealers praised LaMalfa’s legislation.
“The 12% federal excise tax on heavy-duty trucks [is] the highest percentage rate of any federal excise tax that Congress levies, and it adds $12,000 to $22,000 to the price of a new heavy-duty truck,” the group’s chairman Steve Parker said. “The FET depresses new heavy-duty truck sales and delays the deployment of cleaner, safer and more fuel-efficient trucks.”