Groups like ATA, NPTC, MEMA and others signed a letter sent to Congress, urging a repeal of the Federal Excise Tax on the sale of new heavy-duty trucks and trailers.
 - Photo: Jim Park

Groups like ATA, NPTC, MEMA and others signed a letter sent to Congress, urging a repeal of the Federal Excise Tax on the sale of new heavy-duty trucks and trailers.

Photo: Jim Park

The Modernize the Truck Fleet coalition has sent a letter to congressional leaders urging repeal of the federal excise tax, a 12% tax that is levied on the sale of new heavy-duty trucks and trailers.

The letter was signed by a coalition of influential groups from different industries including from trucking, the American Trucking Associations, National Private Truck Council, NAFA Fleet Management Association, Motor and Equipment Manufacturers Association, Truck Trailer Manufacturers Association, and several others.

“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,” said Jodie Teuton, chairwoman of American Truck Dealers, a division of the National Automobile Dealers Association.  

The MTF coalition states that the tax is an outdated and unnecessary relic from a bygone era that only serves to delay fleets from buying new equipment. MTF states that outside of costs, the tax also has safety and environmental impacts as fleets stick with older, higher-polluting models that are not equipped with the latest safety technologies.

On average, the FET can add more than $20,000 to the price of a new heavy-duty truck or trailer, according to the group.

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-NY), House Speaker Nancy Pelosi (D-CA.) and Minority Leader Kevin McCarthy (R-CA).

Stand-alone legislation has also been introduced, H.R. 2381/S. 1839, to repeal the FET. That House bill has 23 bipartisan cosponsors.

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