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Highway Statistics 2003 OHPI > Highway Statistics > 2003 > Hwy Finance > Table FE-101B

FEDERAL TAX RATES ON MOTOR VEHICLES AND RELATED PRODUCTS 1/

SEPTEMBER 2004Table FE-101B
EFFECTIVE DATE OF NEW TAX OR REVISION OF EXISTING TAXAUTOMOBILES (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 percentdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
January 1, 1919downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowAutomobiles for hire $10 for 7 or fewer passengers; $20 for over 7 passengers
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
February 25, 19195 percent5 percent5 percentdownarrowdownarrow5 percent5 percent5 percentdownarrowdownarrow
July 3, 1924downarrowdownarrowdownarrowExempted truck chassis sold for $1,000 or less and truck bodies for $200 or lessdownarrow   downarrowdownarrow
downarrowdownarrowdownarrowdownarrow2.5 percent2.5 percent2.5 percentdownarrowdownarrow
downarrowdownarrowdownarrowdownarrow   downarrowdownarrow
February 26, 1926downarrowdownarrowdownarrowRepealeddownarrowRepealedRepealedRepealeddownarrowdownarrow
March 29, 19263 percent3 percent3 percentdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
June 30, 1926downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowRepealed
May 29, 1928RepealedRepealedRepealeddownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
June 21, 19323 percent3 percent3 percent2 percentdownarrow2 percent2.25Cbar per pound4Cbar per pounddownarrowdownarrow
July 1, 19403.5 percent3.5 percent3.5 percent2.5 percentdownarrow2.5 percent2.5Cbar per pound4.5Cbar per pounddownarrowdownarrow
October 1, 19417 percent7 percent5 percent5 percentHouse trailers, 7 percent; others, 5 percent5 percent5Cbar per pound9Cbar per pounddownarrowdownarrow
        downarrowdownarrow
February 1, 1942downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowAll motor vehicles, $5
June 30, 1946downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowRepealed
November 1, 195110 percent10 percent8 percent8 percent8 percent 5/8 percentdownarrowdownarrowdownarrowdownarrow
September 1, 1955downarrowRepealeddownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
July 1, 1956downarrowdownarrow   downarrow downarrow Annual tax on motor vehicles over 26,000 pounds gross weight, $1.50 per 1,000 pounds 6/
downarrowdownarrow10 percent10 percent10 percent 5/downarrow8Cbar per pounddownarrow3Cbar
downarrowdownarrow   downarrow downarrow 
downarrowdownarrow   downarrow downarrow 
July 1, 1961downarrowdownarrowdownarrowdownarrowdownarrowdownarrow   Annual tax on motor vehicles over 26,000 pounds gross weight, $3 per 1,000 pounds 6/
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow10Cbar per pound10Cbar per pound5Cbar
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow   
June 22, 19657 percent 7/downarrow10 percent 5/10 percent 5/downarrowdownarrowdownarrowdownarrowdownarrowdownarrow
January 1, 19666 percentdownarrowdownarrowdownarrowdownarrow8 percent 8/downarrowdownarrowdownarrowdownarrow
March 16, 19667 percentdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
August 16, 1971Repealeddownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
November 10, 1978downarrowdownarrowRepealed 9/downarrowdownarrow8 percent 9/ 10/10Cbar per pound 9/10Cbar per pound 9/5Cbar 9/downarrow
January 1, 1981downarrowdownarrowdownarrowdownarrowdownarrowdownarrow9.75Cbar per pound 9/ 11/downarrowdownarrowdownarrow
January 7, 1983downarrowdownarrowdownarrow10 percent 12/10 percent 5/ 12/Repealeddownarrowdownarrowdownarrowdownarrow
April 1, 1983downarrowdownarrowdownarrow12 percent 12/12 percent 5/ 12/downarrowdownarrowdownarrowdownarrowdownarrow
January 1, 1984downarrowdownarrowdownarrowdownarrowdownarrowdownarrow15Cbar per pound over 40 to 70 pounds; $4.50 plus 30Cbar per pound over 70 to 90 pounds; $10.50 plus 50Cbar per pound over 90 pounds 9/  downarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow  downarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow  downarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowRepealedRepealeddownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow  downarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow  downarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow  downarrow
July 1, 1984downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowAnnual 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/
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
Scheduled changedownarrowdownarrowdownarrowTerminationTerminationdownarrowTerminationdownarrowdownarrowTermination
under existing lawsdownarrowdownarrowdownarrowOct. 1, 2005Oct. 1, 2005downarrowOct. 1, 2005downarrowdownarrowOct. 1, 2005

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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