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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

Excise Tax Enquirer

Applying the 75% rule to a truck chassis and body separately

A customer asked us to repair a taxable truck with a very damaged body and slightly damaged chassis. Is it correct that Section 4051 tax is not triggered if the total cost of vehicle repairs is less than 75% of a new...

November 1, 2019

Chassis Integrations

Excise Tax Enquirer

Application and calculation of the 4% presumed markup on manufacturer sales

We are a truck body manufacturer that sells truck bodies directly to end users as well as dealers for resale. For our dealer sales, we are sometimes the taxpayer for Section 4051 tax (e.g., we do not obtain a resale...

August 22, 2019

Vehicle Weight Calculation

Excise Tax Enquirer

Which platform bodies meet the suitable for use standard?

We understand platform truck bodies 21 feet long or less are not taxable under Internal Revenue Code (IRC) 4051. What about a 22- or 24-foot platform body?

June 21, 2019

Excise Tax Enquirer

Owner vs. modifier: FET liability when non-taxable chassis is converted to taxable

We purchased a non-taxable truck chassis. Prior to reselling the vehicle, we plan to have an unrelated entity perform slight modifications to it. Assuming the modifications convert the original chassis into a taxable one...

May 3, 2019

Excise Tax Enquirer

Is there a registration requirement for tax-free resale?

In order to sell an otherwise taxable truck under Internal Revenue Code (IRC) 4051 as a tax-free sale for resale, do either I or the purchaser need to be registered with Internal Revenue Service (IRS)?

February 26, 2019

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

Taxable use and addition of lift axle

We purchased a new truck for use in our business. The vehicle was not subject to Section 4051 tax (FET) because its GVWR was at or below 33,000 pounds. We want to add a lift axle to the truck that will increase its GVWR...

December 26, 2018

Excise Tax Enquirer

Special rule for trailer and semitrailer resale

My company recently purchased a new, taxable semitrailer from the manufacturer and did not provide the seller with a resale certificate. We are not making any modifications to the semitrailer and plan to resell it. Will...

November 2, 2018

Gross Combined Weight Rating (GCWR)

Excise Tax Enquirer

When is a chassis cab an FET-taxable tractor?

We sell incomplete chassis cabs to an upfitter that completes them into trucks and sells them at retail. Is it correct that if the Manufacturer’s Statement of Origin/Certificate of Origin identifies the incomplete...

August 30, 2018

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