Internal Revenue Service proposes tax on mobile machinery. (Washington Alert).This summer, the Internal Revenue Service (IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. ) proposed a rule that would end the exemption for any non-farm equipment that could be used on roads, whether or not its primary use is off-road. This rule would subject this equipment to the new vehicle excise tax Excise Tax 1. An indirect tax charged on the sale of a particular good. 2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS. Notes: 1. (currently 12% of the purchase price), motor fuel tax ($0.184/gal on gas and $0.244/gal on diesel), tire excise tax on heavy duty tires and an annual heavy vehicle tax (based on weight and capped at $550). Off-road equipment (including concrete pumpers, mobile cranes A mobile crane is a crane device traveling over rubber-tired wheels. The rubber tires are used to transport the crane from one place to the other. The wheel system is similar to the one used in an airplane's landing system. and aerial lift An aerial lift is a means of transport in which gondolas or open chairs are hauled above the ground by means of a cable. Types of aerial lifts include:
The industries that are likely to be most impacted by the tax change include: oil drilling, water drilling, utilities, commercial construction, timber and mining. Foundries supply castings for machinery 'and equipment to all these industries. The comment period on the proposal, originally scheduled to expire on September 4, has been extended until December 4. The IRS could make the rule effective as proposed, withdraw the rulemaking or revise the rule in its final form. The content and amount of public comment the IRS receives will have a significant influence on the future of this proposal. |
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