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Excise Tax Enquirer

Suitable for use: Periodic review advisable

We have been making retail sales of 22-foot platform bodies for four years. Over this time there has been a gradual shift in our customer base and in the use for which these bodies are purchased. Four years ago, 45% of...

June 1, 1999

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

Tires: Tax credit for new and used tires

Our truck dealership sells both new and used vehicles. We understand that, effective Jan. 1, 1998, a credit is available against the tax due on a taxable truck, in the amount of the tax imposed on the tires under...

May 1, 1999

Excise Tax Enquirer

Further manufacture: Tractor to wrecker after Jan. 1, 1998?

We understood that after Jan. 1, 1998, chassis modifications that did not exceed 75% of the cost of purchasing a similar new chassis would not be considered further manufacturing. However, in Technical Advice Memorandum...

April 1, 1999

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

Sale to municipal government taxable?

A city representative has approached us about purchasing certain new trucks from our truck dealership. The rep stated we should contact a local utility company for the exact specifications because the utility company has...

March 1, 1999

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

Further manufacture: Tractor to straight truck with taxable dump body after Jan. 1, 1998

Our distributorship bought a used tractor from a dealer. We extended the wheelbase, modified the tractor into a straight truck rated 40,000 pounds gross vehicle weight and installed a taxable dump body. We don’t know...

February 1, 1999

Excise Tax Enquirer

Replacement fifth wheels not taxable

Our dealership sells taxable tractors, truck bodies and chassis to a large trucking company. On occasion, one of our salesmen will take an order for a tractor (outfitted with a fifth wheel) and for one or more fifth...

January 2, 1999

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

Fair market value of tires deduction

We recently opened a truck equipment distributorship. Is it true the fair market value of tires can be deducted from the taxable price of a chassis? If so, how do we determine the fair market value of the tires?

October 1, 1998

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

Taxable vehicle: Off-highway use doesn’t necessarily mean it’s nontaxable

I have been told that a vehicle designed for off-road use will not be subject to Federal Excise Tax if it cannot be operated on public roads without first obtaining a special permit (as a result of its exceeding weight...

September 1, 1998

Excise Tax Enquirer

Further manufacture: Does the 75% rule apply to dealer-modified used trucks?

We buy used chassis, modify them and resell them. The modifications typically include adding a lift axle and stretching the frame. We have been told that the 75% rule applies to customer-owned chassis; does it also apply...

May 1, 1998