BOWIE, Md. (July 22, 2004) — The Tire Industry Association (TIA) has lent its support to two House bills that include language to restructure how the Federal Excise Tax (FET) is calculated on truck tires.
Proposals in the bill would change the current FET from a weight-based system to one based on the load-carrying capacity of the tire, TIA said. The association said its main focus was a concept that was revenue-neutral.
“We've run the numbers, and it appears this proposal will generate the same amount of revenue for the Highway Trust Fund without placing a major burden on the tire industry,” said Roy Littlefield, executive vice president. “Since the retreader exception remains intact and the difference between new tire and retread prices will remain relatively the same, our retread members should not be negatively affected.”
The new FET would impose a 9.4-cent tax on radial truck tires for every 10 pounds of carrying capacity over 3,500 pounds. TIA said it still is concerned about the definition of bias-ply tires in the bills. TIA said there is a chance the new FET could be permanent, instead of needing reauthorization every six years.