FET Requirements for the Installation of Replacement Bodies on Trailers
Originally published in the August 2014 edition of Tech Trends
(e-newsletter and as an article within NTEA News), this article is also
available to you below as an employee of an NTEA member company.
Recently, some members have contacted the NTEA with questions regarding
taxability when installing replacement bodies on trailers. Many of these members
believe a trailer is a single item and should be subject to the 75% rule.
Unfortunately, the Internal Revenue Service (IRS) does not see it this
What You Need to Know
- The IRS considers a trailer as
two taxable articles — composed of a trailer chassis and trailer body.
- As trailers have a lower
taxable gross vehicle weight rating threshold than trucks, it is important to
exercise caution when determining whether the replacement body in question is
- The IRS has multiple rulings on
what constitutes a trailer chassis for FET purposes, and you may be surprised at
how few components are needed in order to be considered a trailer
As always, the Technical Services Department is available to help answer your
FET questions before, during and after a sale. In addition, the NTEA’s staff
engineers can help identify any IRS rulings that may support your FET
Are you faced with technical or engineering
Contact the Technical and Engineering
Hotline at (800) 441-6832 for individual attention on varied topics such as
Federal Excise Tax, truck certification and labeling, vehicle compliance and
truck spec’ing. The Hotline is available Monday-Friday, 8am-5pm
(EST). Members can contact the Association as frequently as needed.