TIA: Surface transportation bill could harm tire dealers

BOWIE, Md. (May 19, 2015) — As negotiations for Highway Trust Fund reauthorization come down to the wire, many provisions being considered for the legislation could prove harmful to tire dealers, according to the Tire Industry Association (TIA).

The worst of these is Section 4112 of the Obama administration's GROW America Act, which could pave the way for a return to mandatory tire registration, TIA Executive Vice President Roy Littlefield said in TIA's May 18 Weekly Legislative Update.

“According to the language of Section 4112 of the GROW America Act, it's reasonable to assume that NHTSA (the National Highway Traffic Safety Administration) would require the distributor or dealer to maintain the records and electronically transmit the information to the manufacturer at no cost to the consumer,” Mr. Littlefield said.

(Tire Industry Association photo)

Roy Littlefield

“Based on those assumptions, TIA believes that NHTSA intends to reinstate some form of a mandatory tire registration system,” he said.

Without Section 4112, TIA probably would support the GROW America Act, Mr. Littlefield said.

The basic funding mechanism of the six-year, $478 billion transportation package would be a one-time, 14-percent tax on the earnings U.S. corporations have kept overseas. This is similar to the legislation sponsored by Rep. John Delaney, D-Md., which TIA supports, Mr. Littlefield said.

The current stopgap transportation funding law ends runs out May 31. Mr. Littlefield and TIA Government Affairs Director attended a transportation breakfast May 11 led by Transportation Secretary Anthony Foxx and Vice President Joe Biden, and attended by many major business and labor figures.

Many of the funding proposals discussed at the meeting and in Congress are little more acceptable to TIA than Section 4112, according to Mr. Littlefield. These include:

  • Reinstating the federal excise tax (FET) on passenger tires;

  • Reinstating the FET on tread rubber, which ranged between 5 and 15 cents per pound;

  • A 10-percent increase on the truck tire FET;

  • A 10-percent increase on the FET for new trucks and truck parts; and

  • An increase in the Federal Motor Fuel Tax.

 

“Given the deep disagreements among congressional members, a short-term extension appears more than likely,” Mr. Littlefield said. The funding mechanism is likely to be something non-controversial, such as a general fund transfer.

Meanwhile, Mr. Littlefield urged TIA members to contact Roy Littlefield IV at [email protected] if they were interested in organizing a grassroots effort against Section 4112.

According to news reports, Congress is considering an extension of the trust fund while debate continues.

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