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Senate Members Oppose Tax Increase on New Tractors and Trailers

Posted on June 6th, 2016

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

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 rate (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. This complicated tax can deter business to purchase new tractors and trailers.

No matter what piece of equipment you’re looking to acquire, Triumph Commercial Finance can help with equipment based financing solutions. We have the insight and expertise to understand what it means to meet weekly expenses, buy new assets and have cash on hand for business opportunities.

Source: http://www.truckinginfo.com/news/story/2016/06/senate-legislation-opposes-federal-excise-tax-increase.aspx

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