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Excise Tax Enquirer

Importation of Canadian-manufactured trucks

We’re considering purchasing Canadian-manufactured trucks in Canada, and importing them to the United States. If these trucks had been manufactured in the U.S., their sale would be subject to Section 4051 tax (FET). Will...

November 1, 2021

Excise Tax Enquirer

Six-month rule and $1K taxable threshold on parts and accessories

Under the so-called six-month rule, parts and accessories installation on a taxable truck chassis typically will trigger FET if installed within six months after the chassis is first placed in service. However, there are...

June 23, 2021

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

Is there a Federal Excise Tax exclusion for used components?

We’re building a new truck for a customer consisting of a taxable truck chassis and body. The customer asked if they can supply a used axle to incorporate into the truck chassis. If we agree to accept the customer’s used...

April 28, 2021

Excise Tax Enquirer

Are uninstalled parts and accessories taxable?

A customer wants to purchase a taxable body and, at the same time, an uninstalled body part/accessory. The uninstalled part or accessory is compatible with the body being sold, and would be subject to Section 4051 tax...

March 12, 2021

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

No resale exemption certificate and the six-month rule

We are a dealer that recently purchased a taxable truck chassis for resale. However, when we purchased the truck chassis, we did not provide the seller with a resale exemption certificate, so the seller was responsible...

December 29, 2020

General Regulation

Excise Tax Enquirer

Status of FET on glider kits litigation

No court yet appears to have issued a ruling on whether the so-called 75% rule applies to an article produced with a glider kit. However, a court in one glider case issued a preliminary ruling that interprets certain...

August 31, 2020

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

Understanding feed, seed and fertilizer exemption as it applies to a body

If we sell a new body and chassis to a purchaser intending to use it to transport feed, seed or fertilizer, can we sell the vehicle without paying Internal Revenue Code (IRC) Section 4051 Federal Excise Tax (FET)? Does...

July 10, 2020

General Regulation

Excise Tax Enquirer

Is the mobile machinery exemption for FET still valid?

Does the so-called mobile machinery exemption for Section 4051 tax (Federal Excise Tax or FET) still exist for certain vehicles on which job-site machinery is permanently mounted?

May 1, 2020

Excise Tax Enquirer

Is a GVWR less than a trailer’s combined axle capacities an FET concern?

We are a trailer dealer, and for one model we will begin to sell, the gross vehicle weight established by the manufacturer is less than the weight threshold for taxable trailers (26,000 pounds). But it’s also less than...

February 28, 2020

Excise Tax Enquirer

Installation of a fifth wheel and the Six-Month Rule

A customer asked us to install a fifth wheel on a taxable truck chassis the company just purchased. Would our installation trigger tax under Internal Revenue Code (IRC) 4051?

December 27, 2019

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