The Modernize the Truck Fleet (MTF) coalition, joined by the road builders, trucking, logistics and manufacturing industries, sent a letter Wednesday to congressional leaders urging repeal of the outdated federal excise tax (FET) levied on the sale of new heavy-duty trucks and trailers.
“For the first time, broad segments of America’s trucking industry are uniting to repeal the FET to modernize the truck fleet and promote new, cleaner and safer heavy-duty trucks and trailers,” says Jodie Teuton, chairwoman of American Truck Dealers, a division of the National Automobile Dealers Association.
The 12 percent FET, first enacted by Congress more than a century ago, is the highest percentage-based tax the federal government collects, and on average can add more than $20,000 to the cost of a new heavy-duty truck or trailer. Abolishing the 12 percent FET will help the trucking industry update their fleets and adopt safety equipment and emerging green technologies at a faster pace.
The letter states, “As an industry, we strongly urge you to end the burdensome FET in reauthorization of the surface transportation act (FAST Act). Repeal of the FET will spur the deployment of cleaner and safer trucks.”
The letter was sent to Senate Majority Leader Mitch McConnell (R-Ky.), Minority Leader Charles Schumer (D-N.Y.), House Speaker Nancy Pelosi (D-Calif.), and Minority Leader Kevin McCarthy (R-Calif.).
Stand-alone legislation has been introduced, H.R. 2381/S. 1839, to repeal the FET. The House bill has 23 bipartisan cosponsors.
Members of the MTF coalition include the American Truck Dealers (ATD), the National Tank Truck Carriers (NTTC), the National Trailer Dealers Association (NTDA), The Association for the Work Truck Industry (NTEA), the Truck Renting and Leasing Association (TRALA), and the Truck and Engine Manufacturers Association (EMA).
In addition to these coalition members, the following groups signed onto the letter:
- Agriculture and Food Transporters Conference of the American Trucking Association
- American Trucking Associations
- Associated Equipment Distributors
- American Road and Transportation Builders Association
- Automobile Carriers Conference of the American Trucking Associations
- Baker Commodities Inc.
- Motor and Equipment Manufacturers Association
- NAFA Fleet Management Association
- National Association of Chemical Distributors
- National Private Truck Council
- National Renderers Association
- National Retail Federation
- Recreation Vehicle Dealers Association
- RV Industry Association
- Truck Trailer Manufacturers Association
To read a copy of the letter, please CLICK HERE.
