Senator Inhofe Proposes Heavy Use Tax Refund
May 31, 2001 12:00 PM
Sen James M Inhofe (R-OK) has introduced legislation to provide a prorated tax refund to truck owners who sell their vehicles weighing over 75,000 pounds but have already paid their annual heavy vehicle use tax.
"As truck drivers continue to feel the heavy burden of rising fuel prices, I want to provide them with some form of relief," Inhofe said. "My bill will balance the tax code by providing a tax refund for those who choose to sell their vehicles after they have already paid the heavy use tax for the year."
Under the current Internal Revenue Service code, when a vehicle over 75,000 pounds is bought and driven over 5,000 miles in a year, the owner must pay a $550 heavy-use tax. However, if the owner sells the vehicle in the same year, he or she is unable to receive a refund on this tax. The person buying the vehicle does not have to pay the tax during that year since it has already been paid.
The Heavy Vehicle Use Tax Equity Act will make current tax laws more equitable by requiring the purchaser to pay a prorated tax on the vehicle, while the owner will receive a refund for a portion of the tax already paid.