By Matt TonerPublished August 18, 2018 07:53:59Federal transportation officials have finalized plans to impose a new tire tax on the tire industry that has been pushing for a long-overdue increase.
The Federal Trade Commission has issued final guidance on the proposed $25.6 billion tax, which will apply to a variety of tire manufacturers.
The agency’s final rule is expected to be released later this month.
The tire tax, called the Fuel Tax Act, was announced on Wednesday by U.S. Secretary of Transportation Elaine Chao and Transportation Secretary Anthony Foxx as part of the White House’s goal of eliminating “federal subsidies for the tire and engine industries.”
The fuel tax will be paid by the companies that produce the tires and engines, including the tire companies themselves.
The agency said the tax is expected cost taxpayers at least $5.8 billion in 2018.
Under the Fuel Taxes Act, manufacturers must pay a 10 percent excise tax on tires and engine parts manufactured in the United States, and a 10.75 percent tax on other tires and other components manufactured in other countries.
The fuel tax is supposed to be applied equally to all types of tires and the engines.
The proposed tax will apply not only to tires and parts manufactured by tire companies, but also to other parts of the tire business, such as brake pads, tread-wear mats, brake rotors and other automotive parts.
The tax is not expected to affect the sales of tires made by other tire companies or the tire market as a whole.
The final rule would apply to all tires manufactured or to parts made for any other tire.
Under the law, the tax will also apply to tires manufactured by certain tire manufacturers, such, for example, by Continental Tire.
The law would also apply directly to the tire supply chain.
Under current law, there is no such tax, but Chao said in the White Book that the agency would seek a special exemption for the supply chain because of tire production and manufacturing in certain countries.
The White House has also sought to limit the tax to tires that are sold at wholesale.
The rule will apply directly only to the wholesale supply chain, Chao said.
The rule, Chao wrote, is designed to make sure that the tire tax is fully phased in so that all manufacturers are fully compliant.
The rules will require tire manufacturers to collect $1.4 billion annually from all tire sales.
Tire manufacturers will be required to pay $1 billion annually for each year they manufacture a particular tire and $1,500 annually for any tire that is sold to a customer who does not own or lease a vehicle.