RMA: 'IRS proposal will increase tire taxes'
A proposed rule by the Internal Revenue Service (IRS) that seeks to eliminate a key tax exemption for mobile machinery would force tire buyers to pay more taxes, "increasing the administrative burden on tiremakers," according to Rubber Manufacturer Association (RMA) officials.
The rule narrows the definition of mobile machinery and makes heavy equipment like cranes, drilling units and concrete pumpers subject to substantial news taxes; currently, they are exempt.
"Additionally, construction companies, drillers and other small businesses would pay higher excise taxes on the heavy-duty tires that are fitted on mobile machinery," say RMA officials.
The RMA is working with the Mobile Machinery Caucus to defeat the proposal.
They argue that that most heavy-duty machines spend most of their time off-road and are transported between job sites on highway vehicles that are already subject to federal excise taxes.