The 12-percent FET, the highest federal ad valorem excise tax (based on the value of real estate or personal property), was first levied to help finance World War I.
Sen. Cory Gardner (R-Colo.) introduced Senate Concurrent Resolution 40 (S.Con.Res.40), expressing opposition toward increasing the 12-percent Federal Excise Tax (FET) on heavy trucks and truck bodies.
Last year, House Representatives Reid Ribble (R-Wis.) and Tim Walz (D-Minn.) introduced companion legislation, H.Con.Res.33. Although concurrent resolutions do not have the force of law, they can make a strong statement.
“NTEA commends the Senate on the introduction of this legislation,” said Steve Carey, NTEA executive director. “FET is a complicated tax which deters the purchase of the cleanest, safest and most fuel-efficient trucks. It is a volatile, undependable funding mechanism for the U.S. highway system, and preventing further increases to this tax is critical.”
FET is imposed on the first retail sale of heavy-duty trucks, trailers, semitrailer chassis and bodies, and tractors — trucks with a gross vehicle weight rating (GVWR) of more than 33,000 pounds; tractors with a GVWR of more than 19,500 pounds and gross combined weight of 33,000 pounds or less when paired with a trailer or semitrailer; and trailers with a GVWR of more than 26,000 pounds. The funds derived from it are deposited in the Highway Trust Fund.
The 12-percent FET, the highest federal ad valorem excise tax (based on the value of real estate or personal property), was first levied to help finance World War I. S.Con.Res.40 and H.Con.Res.33 help to educate members of Congress about FET-related problems and explain why it should not be increased.