F.E.T. Debunked!

23 Feb

In my last post I spoke about the Federal Excise Tax of 12% of the purchase price for heavy trucks.  After a bit more research, I found the following pertinent information:

The tax is imposed on the first transaction of the heavy chassis, so if it was purchased new 12% of the purchase price is due as FET.  The tax is due on chassis trucks with GVWR in excess of 33,000lbs.  Well once Freighliner adds a tandem axle onto a chassis truck the GVWR goes to a minimum of 46,000lbs, thereby triggering the FET.  However, there are exemptions to the tax code as called out here:

Articles exempt from tax.   The tax on heavy trucks, trailers, and tractors does not apply to sales of the articles described in the following discussions.
Camper coaches or bodies for self-propelled mobile homes.   This is any article designed to be mounted or placed on trucks, truck chassis, or automobile chassis and to be used primarily as living quarters or camping accommodations. Further, the tax does not apply to chassis specifically designed and constructed to accommodate and transport self-propelled mobile home bodies.
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Well I read that to say that my that my truck chassis which will be specifically designed and constructed to accommodate and transport self propelled mobile home bodies (is a motorhome) is fully exempt from the FET regulation!  That’s pretty exciting news.
Here’s a link directly to the IRS 510 publication pdf for posterity sake: