Lift Axle Incorporation and Tax Implications

Originally published in the August 2013 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.

With the increase in road construction over the summer months comes the prospect of increased payloads. One solution to meet this demand is the addition of a lift axle to a dump truck or other work truck. To incorporate this option, members have questioned the potential of Federal Excise Tax (FET) on the sale.

Questions to Consider
FET issues can become complicated and are directly related to the chassis or body. The following questions can guide you through what you need to know from your customer to help determine if the sale is potentially taxable:

  • Are you adding the lift axle to a new truck (built within the last six months) or a used vehicle (more than six months old)?
  • Does the truck have a GVWR of more than or less than 33,000 lbs.? This will help determine if the chassis has now been modified into a taxable chassis or if the lift axle is just considered a part or accessory.

Are you faced with technical or engineering challenges?
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.