Sen. Cory Gardner (R-CO) introduced Senate Concurrent Resolution 40 (S.Con.Res.40), expressing opposition toward increasing the 12-percent Federal Excise Tax on heavy trucks and truck bodies.
Last year, House Representatives Reid Ribble (R-WI) and Tim Walz (D-MN) introduced companion legislation, H.Con.Res.33. Although concurrent resolutions do not have the force of law, they can make a strong statement.
“NTEA commends the Senate on the introduction of this legislation,” said Steve Carey, NTEA executive director. “FET is a complicated tax which deters the purchase of the cleanest, safest and most fuel-efficient trucks. It is a volatile, undependable funding mechanism for the U.S. highway system, and preventing further increases to this tax is critical.”
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 rating 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.