DPFs subject to excise tax, court rules in lawsuit brought by truck dealer
In a recent article on Overdrive, it was reported that a lawsuit appealing the 12% federal excise tax on DPFs that come equipped on new trucks was rejected by the Eighth Circuit Court of Appeals on Aug. 23. According to Thompson Truck and Trailer who brought the lawsuit, this tax is adding an extra $960 on average to the price of a new truck and DPFs shouldn’t be included in the parts affected by the excise tax.
“Thompson argued in its suit that the term “parts and accessories” was ambiguous in its application to DPFs. The court disagreed. “We conclude that when the phrase ‘parts or accessories’ is given its ordinary or natural meaning, the statute is not ambiguous and the filters fall within its scope,” the judges wrote in their Aug. 23 opinion.
DPFs are filters in truck exhaust systems designed to catch and hold particulate matter so it’s not released into the air. Truck and engine makers began using DPFs about a decade ago as a means to comply with federal emissions regulations.”
There is hope however that the whole excise tax could be repealed if the bill recently introduced passes in the Senate.
Senate bill would repeal 12% excise tax on truck, trailer purchases
“U.S. Sen. Cory Gardner (R-Colo.) has introduced a bill to repeal the 12-percent federal excise tax (FET) on the sale of heavy-duty trucks and trailers, a move heavily applauded by the American Truck Dealers association.
ATD says federal excise tax on commercial trucks and buses was originally imposed in 1917 to help pay for World War I. It has grown from 3 percent to 12 percent and adds $12,000 to $22,000 on the price of a new heavy-duty truck.”
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DES is a recognized leader in the diesel emissions industry. We provide a wide range of services for municipalities, fleet operators, and all manner of transportation and construction businesses all across the west coast.
Diesel Emissions Service (DES) is a division of North State Truck Equipment Inc, a family-owned business, who has been providing bus and truck repair solutions since 1978. In 2006, we started focusing on diesel aftertreatment retrofits (DPFs, DOCs, SCRs), troubleshooting, repair, and services to help customers in applying the correct technology for compliance with the growing clean-air regulations. Since that time we have installed more than 15,000 retrofits across the country.
We have four locations in California as well as facilities in Portland, Oregon and Surrey (Vancouver), British Columbia. DES offers a full line of DPFs and DPF accessories through the Redline Emissions Products® brand – including DPFs, DOCs, clamps, gaskets, weld bungs, CACs, sensors, etc at our online superstore. We also carry brands like Durafit, Skyline, Filtertherm® and more.
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