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Highway Statistics 2000 OHPI > Highway Statistics > 2000 > Highway Finance > Table FE-101B

FEDERAL TAX RATES ON MOTOR VEHICLES AND RELATED PRODUCTS 1/

OCTOBER, 2001 TABLE FE-101B
EFFECTIVE DATE OF NEW TAX OR REVISION OF EXISTING TAX AUTOMOBILES (PERCENT OF MANUFACTURER'S SALES PRICE) MOTORCYCLES (PERCENT OF MANUFACTURER'S SALES PRICE) BUSES (PERCENT OF MANUFACTURER'S SALES PRICE) TRUCKS 2/ TRAILERS 2/ PARTS AND ACCESSORIES (PERCENT OF MANUFACTURER'S SALES PRICE) TIRES 3/ TUBES 3/ TREAD RUBBER (CENTS PER POUND) 4/ USE
October 4, 19173 percent3 percent3 percent3 percentßßßßßß
January 1, 1919ßßßßßßßßßAutomobiles for hire $10 for 7 or fewer passengers; $20 for over 7 passengers
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February 25, 19195 percent5 percent5 percentßß5 percent5 percent5 percentßß
July 3, 1924ßßßExempted truck chassis sold for $1,000 or less and truck bodies for $200 or lessß2.5 percent2.5 percent2.5 percentßß
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February 26, 1926ßßßRepealedßRepealedRepealedRepealedßß
March 29, 19263 percent3 percent3 percentßßßßßßß
June 30, 1926ßßßßßßßßßRepealed
May 29, 1928RepealedRepealedRepealedßßßßßßß
June 21, 19323 percent3 percent3 percent2 percentß2 percent2.25 per pound4 per poundßß
July 1, 19403.5 percent3.5 percent3.5 percent2.5 percentß2.5 percent2.5 per pound4.5 per poundßß
October 1, 19417 percent7 percent5 percent5 percentHouse trailers, 7 percent; 5 percent5 per pound9 per poundßß
others, 5 percentßß
February 1, 1942ßßßßßßßßßAll motor vehicles, $5
June 30, 1946ßßßßßßßßßRepealed
November 1, 195110 percent10 percent8 percent8 percent8 percent 5/8 percentßßßß
September 1, 1955ßRepealedßßßßßßßß
July 1, 1956ßß10 percent10 percent10 percent 5/ß8 per poundß3Annual tax on motor vehicles over 26,000 pounds gross weight, $1.50 per 1,000 pounds 6/
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July 1, 1961ßßßßßß10 per pound10 per pound5Annual tax on motor vehicles over 26,000 pounds gross weight, $3 per 1,000 pounds 6/
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June 22, 1965 7 percent 7/ß10 percent 5/10 percent 5/ßßßßßß
January 1, 19666 percentßßßß8 percent 8/ßßßß
March 16, 19667 percentßßßßßßßßß
August 16, 1971Repealedßßßßßßßßß
November 10, 1978ßßRepealed 9/ßß8 percent 9/ 10/10 per pound 9/10 per pound 9/5 9/ß
January 1, 1981ßßßßßß9.75 per pound 9/ 11/ßßß
January 7, 1983ßßß10 percent 12/10 percent 5/ 12/Repealedßßßß
April 1, 1983ßßß12 percent 12/12 percent 5/ 12/ßßßßß
January 1, 1984ßßßßßß15 per pound over 40 to 70 pounds; $4.50 plus 30 per pound over 70 to 90 pounds; $10.50 plus 50 per pound over 90 pounds 9/RepealedRepealedß
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July 1, 1984ßßßßßßßßßAnnual tax on motor vehicles: 55,000 TO 75,000 pounds gross weight, $100 plus $22 per 1,000 pounds over 55,000 pounds; over 75,000 pounds, $550 13/
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Scheduled change
under existing laws
ßßßTermination Oct.1, 2005Termination Oct.1, 2005ßTermination Oct.1, 2005ßßTermination Oct. 1, 2005
ßßßßßß

1/ The focus of this table is on the Federal taxes on motor vehicles and related products used on highways. The detail provided for other uses is incomplete. Most of the revenue raised by the taxes described is dedicated to the Federal Highway Trust Fund for the financing of highway and transit programs.

2/ Percent of manufacturer's sales price through March 31, 1983; percent of retailer's sales price thereafter.

3/ Percent of manufacturer's sales price to February 26, 1926; re-enacted effective June 21, 1932, on a cents-per- pound basis, but applicable to all tires and tubes, not limited to those for automotive vehicles. Tires and tubes for toys exempted effective November 1, 1951. The additional 3 cents per pound, effective July 1, 1956, and 2 cents per pound, effective July 1, 1961, apply to tires for highway vehicles only. Laminated tires are taxed 1 cent per pound effective July 1, 1965. Effective January 1, 1984, tires of 40 pounds or less are exempt.

4/ Applies to tires "of the type used on highway vehicles."

5/ The following are exempt from the stated taxes: effective November 1,1951, house trailers; effective June 22, 1965, school buses, camper bodies, motor homes, truck and trailer bodies designed for seed, feed, and fertilizer, small three-wheeled vehicles; effective September 23, 1971, trucks, buses, and trailers 10,000 pounds or less gross weight; and, effective December 11, 1971, local transit buses in urban use and trash container bodies for trucks.

6/ The tax applies to the entire gross weight of a vehicle or combination if its gross weight exceeds 26,000 pounds. Buses used in local transit service are exempt.

7/ Although the "basic" tax on automobiles was 7 percent of the manufacturer's wholesale price until January 1, 1966, the 10-percent rate that became effective on a temporary basis November 1, 1951 remained in effect through periodic extensions.

8/ Automobile parts and accessories are exempt from stated taxes.

9/ Taxes paid on buses purchased after April 19, 1977 are refunded. Effective December 1, 1978, bus parts and accessories are exempt and school buses along with intercity and local buses used to transport the general public for compensation on scheduled routes (or 20 or more passenger buses on nonscheduled routes) are exempt from the stated taxes for tires, tubes, and tread rubber.

10/ Although the "basic" tax is 5 percent of the manufacturer's wholesale price, the 8-percent rate that became effective on a temporary basis November 1, 1951, remained in effect through periodic extensions until the tax was repealed.

11/ The tax on nonhighway tires is 4.875 cents per pound except laminated tires are taxed at 1 cent per pound.

12/ Trucks 33,000 pounds or less gross vehicle weight, trailers 26,000 pounds or less gross vehicle weight and rail/highway trailers are exempt from stated taxes. Effective July 18, 1984, piggyback trailers are taxed at 6 percent through July 17, 1985.

13/ The effective date for the rate change for small owner-operator with 5 or fewer taxable trucks is July 1, 1985. Rate is reduced by 25 percent for logging trucks. Trucks used less than 5,000 miles (farm trucks 7,500 miles) per taxable year on public highways and trucks with gross weights under 55,000 pounds are exempt. Effective July 1, 1987, trucks based for registration purposes in Canada or Mexico shall be taxed at 75 percent of the rate before they can operate in the United States. Previously these vehicles were exempt.


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