We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
The gas guzzler tax is an additional tax applied to the sale of certain vehicles that have low fuel economy. This tax was introduced by the U.S. government as part of the Energy Tax Act to encourage manufacturers and consumers to consider fuel efficiency when purchasing vehicles. The gas guzzler tax specifically targets passenger cars and does not apply to light trucks, which include sport utility vehicles, pickup trucks, and vans. The tax is paid by the vehicle's manufacturer or importer after the production of the model year has concluded. The amount of the tax is indicated on the vehicle's fuel economy label, which is typically found on the window sticker of new cars.
Table of content
Legal Use & context
The gas guzzler tax is relevant in the context of environmental law and taxation. It serves as a financial disincentive for the production and sale of vehicles that contribute to higher fuel consumption and greenhouse gas emissions. This tax may be significant for manufacturers who need to comply with federal regulations regarding vehicle emissions and fuel economy. Users can manage related forms or procedures through resources like US Legal Forms, which offers templates for tax-related documentation.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
For instance, if a manufacturer produces a new car model that gets only 15 miles per gallon, it may incur a gas guzzler tax of $1,500. Conversely, a car that achieves 25 miles per gallon would not be subject to this tax.
Relevant laws & statutes
The gas guzzler tax is established under the Energy Tax Act and is detailed in the Code of Federal Regulations (CFR), specifically 26 CFR 48.4064-1. This regulation outlines the criteria for determining which vehicles are subject to the tax and the calculation of the tax amount.
Common misunderstandings
What to do if this term applies to you
If you are a manufacturer or importer of vehicles, ensure that you are aware of the fuel economy ratings of your models to determine if the gas guzzler tax applies. You can utilize resources like US Legal Forms to access templates for tax documentation. If you are a consumer, check the fuel economy label on new cars to understand if a gas guzzler tax has been applied.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.