The National Trailer Dealers Association (NTDA) applauds Reps. Doug LaMalfa (R-CA) and Collin Peterson (D-MN) for introducing H.R. 2381, the “Modern, Clean, and Safe Trucks Act of 2019,” a bipartisan bill to repeal the federal excise tax (FET) being levied on heavy-duty trucks, truck bodies, and semi-trailers. The current federal excise tax rate of 12% increases the cost of trucks and trailers by several thousands of dollars. This discourages the sale of newer, safer, greener trucks and trailers, and puts a damper on American manufacturing jobs. The FET was originally created to help pay for World War I. Still in effect, FET is used to shore up the Highway Trust Fund, although it is an unreliable source of revenue and unfairly burdens the commercial truck and trailer industry. It is the largest excise tax levied by Congress.
Gwendolyn Brown, NTDA President, said, “The Federal Excise Tax has long been an unfair method of taxing the truck and trailer industry. The NTDA supports legislation that encourages the sale of newer trailers and that more fairly supports the construction and maintenance of our highways and roads. We support H.R. 2381 and applaud the co-sponsors of this bipartisan legislation.”
In addition to our own efforts, NTDA is also a member of the Modernize the Truck Fleet (MTF) coalition. Launched in January 2019, the MTF coalition represents a broad collection of businesses in the trucking and trailer industries, including the American Truck Dealers, National Tank Truck Carriers, National Trailer Dealers Association, the NTEA — The Association for the Work Industry, Truck Renting and Leasing Association, and the Truck and Engine Manufacturers Association. The MTF coalition is committed to repealing FET and identifying an acceptable replacement to sustain the Highway Trust Fund.
H.R. 2381 has been referred to the House Ways and Means Committee for further consideration. The National Trailer Dealers Association, along with the MTF coalition, urge Congress to include H.R. 2381 in an infrastructure modernization bill, as they advance broader legislation.
