The National Trailer Dealers Association (NTDA) and the National Tank Truck Carriers Association (NTTC) have joined Modernize the Truck Fleet (MTF) – a new coalition representing trade groups, commercial truck dealerships and equipment manufacturers working to repeal the 102-year-old federal excise tax (FET) levied on the sale of new, heavy-duty trucks and trailers.
“The FET is an unfair method of taxing the trailer industry, and it limits the purchase of newer, safer and greener trailers and parts — all of which are boons to the economy,” says NTDA President Gwendolyn Brown. “As increasing legislative burdens are mandated by the EPA, CARB and other government agencies, the costs of heavy-duty trucks and trailers continue to increase making the FET that much more burdensome.”
The NTDA says it has supported open discussions and proposals to amend the laws governing the FET since a small group of dealers came together in 1990 to form its association.
“We are pleased to support the coalition today,” Brown adds. “There is optimism among members of the coalition that now is the time to actively effect change to the law.”
The MTF coalition, which launched in January at the American Truck Dealers (ATD) Show in San Francisco, also includes ATD, The Association for the Work Truck Industry (NTEA), Truck Renting and Leasing Association (TRALA), and the Truck and Engine Manufacturers Association (EMA).
“The FET is confiscatory and just plain wrong. The FET is the highest percentage tax levied by the federal government which hurts tank truckers more than any other trucking segment given the high cost of our specialized trailers,” says Daniel R. Furth, president, NTTC. “The FET is a tax dinosaur originally intended to defray costs of World War I in 1917, and more than 100 years later, the tax clearly discourages capital expenditures on new equipment—impinging both growth and employment.
“At a time when our infrastructure is in such notable disrepair, the country needs to rethink outdated tax policies like the FET and get to work on real funding mechanisms for the future of our economic prosperity,” he says. “Our carriers are pleased to join the MTF coalition alongside our industry peers.”
