It is important for fleet owners and drivers to know all of the taxes and regulations that apply to the commercial truck market. One of the important taxes to know about is the federal excise tax (FET). Let’s discuss how the FET applies to commercial trucks.
Federal Excise Tax Definition
An excise tax is a tax included in the price of a specific product or good. Commercial truck purchases are assessed a 12 percent tax. This tax is included in the total cost of the product, and is paid by the customer. The responsibility lies on the dealer to collect the tax and pay the IRS.
The federal excise tax is also collected on other purchases including components that are added to commercial trucks for on-highway use. With all purchases, significant responsibility is placed in the dealer to understand these codes and ensure they are paid. Multiple resources are available, including courses and webinars, to help educate both dealers and those purchasing trucks. Experts recommend erring on the side of caution when paying the federal excise tax.
Drivers and fleet owners looking to purchase a new or used commercial truck can do so at their nearest Allstate Peterbilt Group location. We have locations in multiple states throughout the Midwest, enabling us to serve a wide range of customers. You can find your nearest Allstate Peterbilt Group location right here on our website, and take a look at our inventory to learn more about everything we have to offer.
More From Allstate Peterbilt
DPF and DOC Cleaning
The Importance Of Cleaning Diesel Filters When was the last time you had your diesel particulate ...read more
What vehicles will the Phase 2 Greenhouse Gas Regulations impact?
The past summers saw the release of the latest round of Environmental Protection Agency (EPA) ...read more