Rep. LaMalfa brings back bill to repeal tax on heavy trucks

Rep. Doug LaMalfa, R-Calif., has renewed an effort to repeal the federal excise tax on heavy trucks and trailers.

LaMalfa introduced HR2424 on Thursday, March 27. The bipartisan effort would remove the 12% federal excise tax on heavy trucks. Proponents of the bill, which has been issued several times in recent congressional sessions, have said the tax can add $15,000 to $30,000 to the cost of a new heavy-duty truck.

“For over a century, the federal excise tax on heavy-duty trucks has gone from a temporary wartime measure to fund World War I to an outdated tax that punishes truck buyers,” LaMalfa said in a news release. “This is the highest percentage-based tax Congress imposes on any product, yet it fails to be a reliable source of funding for the Highway Trust Fund. This tax forces buyers to stick with older, less efficient models and makes it harder for truckers to modernize their rigs, holding back the trucking industry from updating. Let’s repeal this outdated tax and support the men and women who keep America moving.”

Reps. Chris Pappas, D-N.H.; Darin LaHood, R-Ill.; Salud Carbajal, D-Calif.; and Max Miller, R-Ohio, signed on as original co-sponsors.

As with previous versions of the bill, the Owner-Operator Independent Drivers Association voiced concern about the bill not including an offset.

Without that information, OOIDA said it’s unclear how the bill would affect its members.

“While we would support any proposal that might provide financial relief to our members, it’s unlikely that a (federal excise tax) repeal would benefit small-business truckers,” said Bryce Mongeon, OOIDA’s director of legislative affairs. “We know our members typically purchase used trucks and hold on to them for a long time. A (federal excise tax) suspension would also create a significant shortfall in the Highway Trust Fund, and without a proposal to address this deficit, we are concerned a future offset would disproportionately burden small-business truckers.”

The bill, however, is supported by the American Trucking Associations.

“Keeping this antiquated tax on the books imposes an enormous hardship, particularly for the small fleets, family businesses and independent truckers who make up the overwhelming majority of trucking,” ATA President Chris Spear said. “Removing this burden will allow motor carriers to replace their trucks with modern, safer and cleaner equipment, which will in turn provide a boost to manufacturing jobs.”

The 2023 version of LaMalfa’s bill gained 22 co-sponsors. LL