Filed under: Government/Legal
Gov't forgot to change Gas Guzzler tax
Back in December, we told you about the new method the government would be using to calculate fuel mileage. For the first time in twenty years, they decided to make changes to better reflect real-world driving conditions and driver behaviors. The changes went into effect starting with 2008 model year cars, and are evident in the newly styled window stickers on those vehicles (shown above). We correctly surmised that most estimates would go down by some degree using this new formula. In our comments, many of you immediately noticed that this would unfairly bump some vehicles into the gas guzzler tax bracket. Apparently, you had reason to be concerned.
Revealed after some sleuthing by the boys at Dubspeed Driven, the EPA is still using the 1991 tax schedule and gas guzzler calculation method. That essentially means that the exact same car that skirted the gas guzzler surcharge last year, could be a scofflaw in 2008. Cars like a Nissan 350Z, for instance. It's combined 23.15 last year kept it out of the gas guzzler bracket, but under the new formula, it's a $1,300 offender at 21.15 mpg.
There's no mention anywhere on the EPA website about the new testing procedures or the fact that 2008 vehicles will likely be reporting lower mpg compared to 2007 Monroneys. Scared at the possible backlash when their vehicles appear to be getting poorer mileage, major carmakers have banded together to create a website to help educate consumers about the apparent drop in fuel economy, but nothing seems to be in place at the EPA to account for the change. Trucks, some sport utilities and minivans are all still exempt from gas guzzler tax, however.
[Source: Dubspeed Driven]
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Reader Comments (Page 1 of 2)
doug 5:23PM (4/18/2007)
doesnt that make sense, raise the bar for gas guzzler tax? that would push companies harder to make more fuel efficient cars
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Kowell 5:24PM (4/18/2007)
Just like the Prius Ecotest failure of the other day, another great exemple of bureaucratie in action... or is it inaction....
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Kowell 5:27PM (4/18/2007)
"doesnt that make sense, raise the bar for gas guzzler tax? that would push companies harder to make more fuel efficient cars"
Like those companies would care... They'd just blame the government and say it'S no their fault... again
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Mike 5:34PM (4/18/2007)
"They'd just blame the government and say it'S no their fault... again"
And that is different from the average leftist how?
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Paul Y 5:38PM (4/18/2007)
The real issue is why on earth Trucks & SUVs are exempt, I'd imagine. Unless you really, seriously are going to use it for commercial purposes, and can prove it, you shouldn't be exempt.
I concluded that some time ago, anyone who drives a full size pickup/wagon-on-stilts as their primary commuter vehicle is, in fact, an idiot. However, this also makes them tax-dodging idiots. USA! USA!
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david 5:58PM (4/18/2007)
Paul Y, please, not so loud. The Toyoda Tundra fans might be listening and you'll scare them half to death.
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Kowell 5:59PM (4/18/2007)
Paul Y : Yeah I still don't understand how my front neighbour managed to pass off her brand new Durango as a company truck considering she runs a small daycare center in her house....
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cg 6:00PM (4/18/2007)
They "forgot" about this like they "forgot" about the AMT.
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Carguy 6:07PM (4/18/2007)
Why not also include luxury SUVs? Why tax a 21MPG 350Z when a 12MPG Hummer gets away tax free?
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DriftPunch 6:08PM (4/18/2007)
I think that the government should tax on weight to horsepower to weight ratios on private vehicles. Anything above 20 is tax free. Anything 15-20 is $2,000 per year. Anything 10-15 is $5,000 per year. And anything
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DriftPunch 6:10PM (4/18/2007)
I think that the government should tax on weight to horsepower to weight ratios on private vehicles. Anything above 20 is tax free. Anything 15-20 is $2,000 per year. Anything 10-15 is $5,000 per year. And anything
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DriftPunch 6:11PM (4/18/2007)
I think that the government should tax on weight to horsepower to weight ratios on private vehicles. Anything above 20 is tax free. Anything 15 through 20 is $2,000 per year. Anything 10 through 15 is $5,000 per year. And anything less than 10 is prohibited. Post factory modifications would become an offense equal to tax evasion. This way, buyers would have to chose socially conscious vehicles and we could get all those street race cars off our public highways. No longer could manufacturers produce vehicles capable of extreme performance, yet hide behind good fuel economy numbers when used at performance levels well below their intended usage.
YES, THAT WAS SARCASM! At least I got to see how the mind of a leftist works. Don't like something, use the government to change it...
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DriftPunch 6:13PM (4/18/2007)
Sorry guys, the impact of what I wrote was lessened by the fact that you can't seem to use a dash without it causing your entire post to truncate right before the phrase in which the dash was used.
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JusForKix 6:14PM (4/18/2007)
The guzzler tax is not based on the EPA Label Fuel Economy. Instead they are based on what they call an "Unadjusted combined MPG". This maybe why they havent changed the guzzler rules.
See the link below for details.
Excerpt from the FAQ
"The fuel economy figures used to determine the Gas Guzzler Tax are different from the fuel economy values provided on this web site (fueleconomy.gov) and in the Fuel Economy Guide."
http://www.fueleconomy.gov/feg/info.shtml#guzzler
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frondeur 6:51PM (4/18/2007)
Maybe I'm not getting something, but I don't see why the Gas Guzzler standards should change in response to the EPA's new Economy calculations. This isn't the same as when the units for horsepower changed a few years ago, a mile and a gallon are the same units. The EPA just changed the way it calculates fuel economy to better reflect a modern duty cycle. And many vehicles are less efficient than we were led to believe by the out-dated way the EPA used to calculate figures.
Personally I find it funny that GM can no-longer claim the Z06 as being exempt from the tax...and find it frustrating (like many others) that large vehicles are still exempt all together!
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TIMMAH! 6:52PM (4/18/2007)
I think they should leave it as is. The government gets some much needed revenues, and the manufacturers get a kick in the ass to get going on raising their CAFE averages.
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Barney 7:13PM (4/18/2007)
It's the "annual cost estimate" that gets me. Do they know something the rest of us don't. How would they possibly know what the cost of gas is going to be?
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Carlos 7:27PM (4/18/2007)
There shouldn't be a sharp cutoff. It should be a sliding tax, from 0 (at say, 30mpg) to whatever amount, increasing in proportion as you go lower and lower (tiny tax for 29mpg, big tax for 9mpg).
And there shouldn't be exemptions on vehicles. Give exemptions for running a business depending on its type to make up for it, not to the vehicles - far fewer cheats that way.
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rgseidl 7:49PM (4/18/2007)
@Frank Filipponio -
please research your blog articles a little better instead of referring to flawed sleuthing by some other bloggers. EPA has of course been publishing information on the new rules and sticker throughout its rule-making process.
http://www.epa.gov/fueleconomy/basicinformation.htm
The CAFE program and its E85 loophole is run by the Department of Transportation, which has long been BFF with the auto industry.
The gas guzzler tax (GGT) is an IRS program.
EPA therefore has jurisdiction over neither program. Its remit in this context is strictly limited: advising consumers about the fuel economy they may expect in *average* real-world driving. The old procedures were proven hopelessly out of date by gross overestimates of fuel economy for hybrids. The new ones are a superset that also includes harder acceleration and a/c load. As usual, your mileage will vary based on duty cycle and especially, personal driving style.
The discrepancy between the MPG figure you will see in the showroom and the one used for CAFE and GGT calculations is a deliberate consequence of the current US Administration's policies, hardly an oversight. The sticker does state clearly that the numbers presented are based on new procedures taking effect with MY2008.
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tcc3 8:35PM (4/18/2007)
This idea the everone who drives a truck is a careless environment hating idiot, is itself stupid. Most people dont want or need 5 different cars for every situation. Some folks need a truck for hauling/cargo and their other vehicle (read wifes car) is a passenger car. Maybe a 3rd car for an of age child.
I'll bet you arent nearly as judgemental when you need your buddy's truck to move or bring home a large item that wont fit in your car.
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