Tax file

House Ways and Means Committee member Wes Watkins (R-OK) has introduced a bill aimed at simplifying the tire excise tax. H.R. 901 would tax tires at a rate of 0.8 per pound of tire load capacity in excess of 3,500 lb. Tires marked for both single and dual loads would be taxed at the higher load rating. This system would replace the current graduated tax, which is based on the weight of the tire itself

House Ways and Means Committee member Wes Watkins (R-OK) has introduced a bill aimed at simplifying the tire excise tax. H.R. 901 would tax tires at a rate of 0.8¢ per pound of tire load capacity in excess of 3,500 lb. Tires marked for both single and dual loads would be taxed at the higher load rating. This system would replace the current graduated tax, which is based on the weight of the tire itself rather than its rated capacity. The bill is intended to bring in the same amount of revenue as under current law, but carriers may find significant differences in their tire tax bill, depending on the weight or load rating of the tires they spec.

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