U.S. Congress Seeks to Repeal Truck Excise Tax

Legislation Introduced to Repeal Federal Excise Tax on Heavy-Duty Trucks

The U.S. tax code currently imposes a 12 percent federal excise tax (FET) on the sale of all heavy-duty trucks, tractors, and trailers. This tax is the highest FET levied by Congress on any product. The excise tax was originally imposed to help defray the cost of World War I. Since 1955, the excise tax rate on new heavy-duty trucks, tractors and trailers has increased by 300 percent, ballooning from three percent to its current rate of 12 percent. According to the American Truck Dealers, the tax adds between $12,000 and $22,000 to the price of new heavy-duty trucks.

On June 13, Sen. Cory Gardner (R-Colo.) introduced S. 3052, the Heavy Truck, Tractor, and Trailer Retail Federal Excise Tax Repeal Act, legislation that would repeal the excise tax on heavy trucks and trailers with a gross vehicle weight rating in excess of 33,000 pounds.

The effort to repeal the tax is supported by NAFA, as well as the American Truck Dealers, the National Trailer Dealers Association, Navistar, the Association for the Work Truck Industry, the Recreation Vehicle Dealers Association, and the Truck & Engine Manufacturers Association, among others.

DOT Medical Card Ruling Delayed

A ruling that would end the need for commercial motor vehicle drivers to carry medical cards has been delayed for three years, according to a recent interim final rule issued by the Federal Motor Carrier Safety Administration (FMCSA). FMCSA says the ruling, which was set to take effect June 22, 2018, was pushed back in part due to a hack of the medical examiner’s website that has left it offline while the agency rebuilds the infrastructure. The new compliance date is June 22, 2021.

Despite the compliance delay for certain provisions in the rule, the requirement for medical examiners to report drivers’ physical exam results to FMCSA by midnight of the next calendar day following the exam still goes into effect Friday, June 22.

 Senators Close to Finalizing Bipartisan Bill to Modernize Vocational Training

Sens. Lamar Alexander (R-Tenn.) and Patty Murray (D-Wash.) are close to finalizing legislation that would update federal career and technical education (CTE) programs. Negotiations are still ongoing, but the Senate Health, Education, Labor, and Pensions Committee will reportedly markup a 73-page staff discussion draft produced by Alexander and Murray on June 26.

The bill would update the Carl D. Perkins Career and Technical Education Act to closer align career and technical programs with the needs of local businesses. The draft builds on a bill passed by the House last year that focuses on giving local business groups and workforce development programs a say in how localities spend federal funding.

Given the challenges many fleet managers face in recruiting technicians equipped with the advanced skills necessary to meet today’s auto repair needs, NAFA strongly supports efforts to modernize CTE programs. Specifically, NAFA advocates for legislation that encourages strong and flexible partnerships between educators, employers, and community partners; as well as those regarding the implementation of innovative CTE programs; improving outcomes through an increased focus on employability skills; work-based learning opportunities; and meaningful credentialing to make students more competitive.