Congress again eyes repeal of federal excise tax on trucks

Trucking information and briefs for Friday, June 17, 2022:

Congress once more can take aim at federal excise tax on vans

For the second time in the last 12 months, Congress has introduced laws that would repeal the 12% federal excise tax (FET) on heavy vans.

On Thursday, Reps. Doug LaMalfa (R-California) and Chris Pappas (D-New Hampshire), introduced the Contemporary, Clear and Safe and sound Vans Act of 2022. A similar Senate invoice was released last year by Sens. Todd Youthful (R-Indiana) and Ben Cardin (D-Maryland), but it by no means advanced earlier the Committee on Finance.

The excise tax on hefty trucks, which was to start with enacted in 1917 to support fork out for Entire world War I, is the maximum excise tax levied by the federal govt and could incorporate far more than $30,000 to the value of new major trucks, trailers, semitrailer chassis and tractors for highway use, according to a press release from bill sponsor LaMalfa. Off-highway tools these as agriculture, earthmoving, forestry and mining machinery are exempt from the tax. This tax is paid out at the time of sale and is not levied on used truck product sales, consequentially encouraging the order of utilized cars.

It was very last improved in 1982 to 12%, and whilst it was established to expire in 1987 it was extended in 1987, 1991, 1998, 2005, 2012 and 2015.

“The federal excise tax has outlived its initial intent by much more than a century,” LaMalfa mentioned. “Between Sacramento and Washington, truckers have dozens of rules on emissions and protection to stick to. Having said that, at the exact time, our tax code disincentivizes them from obtaining the most up-to-date vehicles, with the federal excise tax introducing as substantially as $30,000 by alone.”

The American Truck Dealers (ATD) applauded the bill’s introduction.

“We need new and a lot more environmentally pleasant vans deployed on our roadways,” stated Scott McCandless, ATD Chairman and president of McCandless Truck Centre. “Half of the Course 8 vehicles on the road are in excess of 10 a long time outdated and lack the cleaner systems and gas effectiveness gains of today’s new trucks. The FET is a barrier to our nationwide goal to set more cleaner-emission vehicles in support. For electrical vans, the FET is a counterproductive dead fat.”

CVSA asks FMCSA to have to have hemp carriers to have uniform documentation

The Business Auto Safety Alliance is petitioning the Federal Motor Carrier Basic safety Administration to require interstate carriers hauling hemp to carry the proposed delivery paperwork involved in the U.S. Department of Agriculture’s closing rule on hemp generation.

The Agricultural Improvement Act of 2018, usually known as the 2018 farm invoice, prohibited states from stopping interstate transportation of hemp made below an authorised production strategy. Then, in 2019, the USDA printed a closing rule formally legalizing the interstate transportation of hemp.

CVSA stated in its letter that for the reason that of distinctions in state laws, enforcement guidelines and various lawful classifications of hemp, there are inconsistencies in how hemp transportation is enforced at the point out level. “As states operate to carry out the improvements important for permitting the interstate transportation of hemp manufactured below the outlined system, supplemental information are wanted for regulation enforcement interacting with hemp through its transportation to ensure a load’s validity and safety,” the group said.

In USDA’s closing rule, it suggested a established of shipping and delivery paperwork for carriers to have on hand when transporting hemp, but the company pointed out that it was not introducing individuals suggestions as demands “because it does not have jurisdiction in excess of popular carriers or other forms of transporters.”

As FMCSA is the federal agency with that jurisdiction, CVSA is asking the company to include things like the recommended standardized shipping paperwork for hemp haulers in the Federal Motor Carrier Basic safety Polices (FMCSRs).

Particularly, CVSA asks that carriers have copies of the laboratory testing report(s), hemp grower license, bill/bill of lading, and get in touch with info of the buyer and seller accompany hemp when currently being transported. 

“Clear, enforceable rules are a cornerstone of an powerful professional motor car or truck basic safety enforcement plan,” CVSA additional. “Adding these transport document requirements to the FMCSRs will be certain that law enforcement has the required data to confirm a load of hemp’s validity and protection all through a roadside inspection. Specifics on how roadside inspectors ought to verify the valid and safe transportation of hemp are essential to make certain uniform enforcement across the state. With no these kinds of benchmarks, the obligation falls on each and every roadside inspector to assess and decide the status of the hemp remaining transported.”

CVSA included that these kinds of a prerequisite would also be valuable to carriers, as it would “reduce the sum of time a driver is detained to confirm the security and validity of their cargo, enhancing effectiveness.”