Bill would repeal federal excise tax; OOIDA waits to see offset

Rep. Doug LaMalfa, R-Calif., has resumed his efforts to repeal the federal excise tax on heavy-duty trucks and trailers.

On Monday, April 29, LaMalfa introduced HR2381, which aims “to amend the Internal Revenue Code of 1986 to repeal the excise tax on heavy trucks and trailers, and for other purposes.”

The bill’s text was unavailable as of April 30, but LaMalfa also attempted to remove the tax with a previous bill in 2017. Earlier this year, American Truck Dealers launched a coalition called Modernize the Truck Fleet with the goal of eliminating the tax.

After the coalition was launched in January, the Owner-Operator Independent Drivers Association said it was not opposed to the repeal but that the Association wants to know where lawmakers will turn to look for the lost revenue if the federal excise tax is eliminated.

“OOIDA isn’t opposed to repealing the FET, but Congress must identify an offset first. Meaning, repealing the FET would create a reduction in tax revenue that would need to be replaced somehow,” said Mike Matousek, OOIDA’s manager of government affairs. “We will remain neutral until an offset is identified and until we know exactly how the offset would impact our members.”

The coalition for the repeal includes ATD, Truck and Engine Manufacturers Association, Navistar, Paccar, Volvo, Cummins, NTEA, and the Truck Renting and Leasing Association.

Co-sponsors of LaMalfa’s bill are Reps. Collin Peterson, D-Minn., Tom O’Halleran, D-Ariz., Greg Pence, R-Ind., and Henry Cuellar, D-Texas.