A new bill introduced by U.S. Sen. Cory Gardner (R-CO) would offset the 12 percent federal excise tax on the sale of heavy duty trucks and trailers — an attempt which has already received applause from several sides of the trucking industry.
Similar efforts to S.B. 3052 have already been tried previously, most recently in the kind of U.S. Rep. Doug LaMalfa’s (R-CA) attempt in June 2017. While that effort ultimately failed, Gardner’s has begun with 17 cosponsors. The legislation will also gain in the rallied support of the American Truck Dealers (ATD) during their annual ATD Legislative Fly-In following week.
“This baffling tax creates excessive costs that are passed to truckers, who play an essential part in maintaining our nation’s market,” Gardner explained. “I was happy to present legislation to counter it.”
Besides ATD, the effort has got the support of 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.
While the federal excise tax originally helped cover World War War following its introduction in 1917, the sector has chafed in its expansion in the tax of 3% to 12 percent. It can add anywhere from $12,000 to $22,000 into the cost of fresh heavy-duty trucks.
“It is the greatest excise tax Congress levies on a percentage basis on any item, including alcohol and tobacco,” ATD Chairwoman Jodie Teuton explained.
At the moment, the bill has been referred to the Senate Finance Committee for additional consideration.