WASHINGTON (July 13, 2004) — Michelin North America Inc. is backing a change to the computation of tire excise taxes that currently is in two pieces of House legislation, including its version of highway reauthorization.
The provision would change the basis of the tax from weight to load capacity, explained Steve Evered, Michelin director of government affairs. “The current tax law dates back to the 1920s,” Mr. Evered said. “We need to bring it into the 21st century.”
But although the Joint Committee on Taxation and the Treasury Department have said the provision is revenue-neutral, the Tire Industry Association (TIA) is wary of any change to the current excise tax law, which provides an important price differential between new and retreaded truck radials.
TIA board members had scheduled a conference call July 14 to discuss the issue, said TIA Executive Vice President Roy E. Littlefield III. The Rubber Manufacturers Association has supported tire excise tax simplification in the past, but remained neutral this year because of lack of consensus between members, said John Falardeau, RMA director of government affairs.