|
|
Gas Guzzler Tax
If you buy a car with low
gas mileage there is an
extra tax you must pay
The Energy Tax Act of 1978
established a Gas Guzzler
Tax on the sale of new model
year vehicles whose fuel
economy fails to meet
certain statutory levels.
The gas guzzler tax applies
only to cars (not trucks)
and is collected by the IRS.
|
|
A federal "gas guzzler" tax
is collected on new
automobiles that have a fuel
economy rating of less than
22.5 miles-per-gallon (MPG).
Minivans, sports utility
vehicles, and automobiles
weighing more than 6,000
pounds are exempt from the
tax. Because of the
exemptions, very few
vehicles are subject to the
tax. The tax ranges
from $1,000 for automobiles
with MPG standards of
between 21.5 and 22.5 to
$7,700 for vehicles with MPG
standards of less than 12.5.
The fuel economy figures
used to determine the Gas
Guzzler Tax are different
from the fuel economy values
from the EPA. The tax
does not depend on you
actual on-the-road mpg,
which may be more or less
than the EPA published
value. The purpose of the
Gas Guzzler Tax is to
discourage the production
and purchase of fuel
inefficient vehicles.
The amount of any applicable
Gas Guzzler Tax paid by the
manufacturer will be
disclosed on the
automobile's fuel economy
label (the window sticker on
new cars).
|
The combined fuel
economy MPG value
(55% city, 45%
highway) is used to
determine the tax
liability. The
MPG value is also
adjusted slightly to
account for
differences in test
procedures since the
base year.
The MPG is not
adjusted for in-use
short fall.
The unadjusted
combined MPG of a
vehicle can be
approximated from
the city and highway
values provided in
the Fuel Economy
Guide by the
following equation:
(1/(.495/city
MPG + .351/Highway
MPG)) + .15
Check out the
actual tax code in
Section 4064. |
|
GAS GUZZLER
TAX |
|
Unadjusted
MPG
(combined) |
Tax |
|
at least
22.5 |
No Tax |
|
at least
21.5, but
less than
22.5 |
$1,000 |
|
at least
20.5, but
less than
21.5 |
$1,300 |
|
at least
19.5, but
less than
20.5 |
$1,700 |
|
at least
18.5, but
less than
19.5 |
$2,100 |
|
at least
17.5, but
less than
18.5 |
$2,600 |
|
at least
16.5, but
less than
17.5 |
$3,000 |
|
at least
15.5, but
less than
16.5 |
$3,700 |
|
at least
14.5, but
less than
15.5 |
$4,500 |
|
at least
13.5, but
less than
14.5 |
$5,400 |
|
at least
12.5, but
less than
13.5 |
$6,400 |
|
less than
12.5 |
$7,700 |
|
|
Vehicles subject to
the Gas Guzzler Tax |
|
Vehicle |
Tax |
| 2005
Audi A8 |
$1,700 |
| 2005
Audi S4 |
$1,700 |
| 2006
BMW 7-Series |
$1,700 |
| 2005
Dodge Viper |
$3,000 |
| 2005
Ford GT |
$2,100 |
| 2006
Jaguar XK |
$1,000 |
| 2006
Mercedes Benz CL500 |
$1,000 |
| 2006
Mercedes Benz CL600 |
$2,600 |
| 2006
Mercedes Benz CL55
AMG |
$1,700 |
| 2006
Mercedes Benz CL65
AMG |
$2,600 |
| 2005
Mercedes Benz SL500 |
$1,300 |
| 2005
Mercedes Benz SL55
AMG |
$2,100 |
| 2005
Mercedes Benz SL600 |
$2,600 |
| 2005
Mercedes Benz SL65
AMG |
$3,000 |
| 2006
Pontiac GTO |
$1,300 |
| 2005
Volkswagen Phaeton
4D Sedan 4-seater V8 |
$1,300 |
| 2005
Volkswagen Phaeton
4D Sedan 4-seater
V12 |
$3,000 |
| 2005
Volkswagen Phaeton
4D Sedan V8 |
$1,300 |
| 2005
Volkswagen Phaeton
4D Sedan W12 |
$3,000 |
|
|
|
