Internal Revenue Service proposes tax on mobile machinery. (Washington Alert).
This summer, the Internal Revenue Service (IRS) 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 (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 and aerial lift trucks) have been exempt from both excise and fuel taxes because they are not considered to be highway vehicles. Foundries with off-road equipment would be affected by this change, even if the equipment is only used off-road.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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| Publication: | Modern Casting |
|---|---|
| Article Type: | Brief Article |
| Geographic Code: | 1USA |
| Date: | Oct 1, 2002 |
| Words: | 227 |
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