[This article was originally published in 2019 by Trucks, Parts, Service. It has been updated to include more timely information.]
The parameters of the United States' federal excise tax on heavy trucks and trailers is contained in IRS Internal Revenue Code (IRC) Section 4051. According to the IRS, Section 4051 imposes a 12 percent excise tax "on the first retail sale of automobile truck chassis and bodies, truck trailer and semitrailer chassis and bodies, and tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer."
The IRS also states the tax is not limited to commercial vehicles, thus, "a vehicle may be subject to tax even if sold for use or used as a recreational or private tow vehicle rather than for commercial purposes."
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The IRS says units contained within the tax are as follows:
Federal excise tax also can apply to parts and accessories purchased within six months after a taxable vehicle is placed into service that do not qualify as replacement parts or accessories and cost more than $1,000 for the price of the parts and their installation.
Additionally, the IRS states, “’First retail sale means the first sale, for a purpose other than resale or leasing in a long-term lease, after manufacture, production or importation. The tax is 12 percent of the price for which the article is sold. The person making the first retail sale (often a franchised truck dealer) is liable for the tax.
