Truck Dealers Lead the Charge Against the Federal Excise Tax

American Truck Dealers chairwoman Jodie Teuton announced the launch of a new coalition of industry stakeholders that aims to repeal the federal excise tax on commercial truck sales.

The coalition, called Modernize the Truck Fleet, includes ATD; Truck and Engine Manufacturers Association, NTEA - The Association for the Work Truck Industry and the Truck Renting & Leasing Association .

“Repealing this 102-year-old tax remains our No. 1 priority. This tax discourages the deployment of today’s cleaner, safer and more fuel-efficient heavy-duty trucks,” said Teuton, vice president of Kenworth of Louisiana and Hino of Baton Rouge. “And this year, we won’t be alone in the fight. We now have some strong industry allies.”

According to ATD, the Federal Excise Tax was enacted in 1917 as a way to help pay for World War 1 and today it remains the highest percentage tax that is levied on a product. Speaking at the American Truck Dealers Show in San Francisco, Teuton added that the tax can add $12,000 to $22,000 to a new truck, hurting both dealers and truck buyers.

“The truck industry is united, and we have two goals: Repeal the FET and find an acceptable replacement for the lost revenue from the FET that provides a long-term solution to help fund our highways and modernize America’s fleets,” said Teuton. “We’re joining our efforts this year to include the FET repeal in a comprehensive infrastructure bill.”

She urged ATD member dealers to ramp up their grassroots efforts and get involved by contacting their members in Congress.

“This Congress, we have a unique opportunity to make FET repeal a reality,” said Teuton. “Both Congress and the administration are discussing a comprehensive infrastructure bill that would address funding. This is our best shot in decades to eliminate this tax.”