News
Lawmakers, OOIDA oopose increase in taxes on new trucks

By David Tanner, senior editor

OOIDA is supportive of a resolution in Congress that opposes any increase to the federal excise tax on new trucks and trailers.

The Association supports House Concurrent Resolution 33, filed by U.S. Reps. Reid Ribble, R-Wis., Tim Walz, D-Minn., and 16 co-sponsors. The resolution gets ahead of any proposals that would attempt to increase the 12 percent tax on new trucking equipment in the next highway bill.

According to language in the resolution, the average retail price of a new truck is $169,000, and the cost continues to increase based on mounting regulatory requirements for fuel economy and emissions. The 12 percent federal excise tax, or FET, adds another $20,280, on average, to the purchaser’s cost.

Some government agencies and various nonprofit groups have suggested increasing the tax to as high as 20 percent.

“The existing 12 percent levy on heavy-duty trucks is already the highest excise tax imposed by Congress on a percentage basis,” Eric Jorgensen, Peterbilt dealer and chairman of the American Truck Dealers, stated in a news release.

“With a highway bill and comprehensive tax reform on the agenda in Washington, H. Con. Res. 33 sends a clear message to Congress that hiking the FET on commercial trucks should not be on the table.”

OOIDA Executive Vice President Todd Spencer says the FET has never been a true user fee.

“It always has discriminated against small-business truck owners who frequently pay the highest prices for new trucks plus the FET.”

OOIDA is concerned about the compounding costs associated with federal mandates and proposals. From 2002 up through the next round of EPA standards, environmental regulations will have added more than $30,000 to the sticker price of a new truck, according to American Truck Dealers. LL