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Internal Revenue Code, § 4051. Imposition Of Tax On Heavy Trucks And Trailers Sold At Retail

I.R.C. § 4051(a) Imposition Of Tax
I.R.C. § 4051(a)(1) In General
There is hereby imposed on the first retail sale of the following articles (including in each case parts or accessories sold on or in connection therewith or with the sale thereof) a tax of 12 percent of the amount for which the article is so sold:
I.R.C. § 4051(a)(1)(A)
Automobile truck chassis.
I.R.C. § 4051(a)(1)(B)
Automobile truck bodies.
I.R.C. § 4051(a)(1)(C)
Truck trailer and semitrailer chassis.
I.R.C. § 4051(a)(1)(D)
Truck trailer and semitrailer bodies.
I.R.C. § 4051(a)(1)(E)
Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer.
I.R.C. § 4051(a)(2) Exclusion For Trucks Weighing 33,000 Pounds Or Less
The tax imposed by paragraph (1) shall not apply to automobile truck chassis and automobile truck bodies, suitable for use with a vehicle which has a gross vehicle weight of 33,000 pounds or less (as determined under regulations prescribed by the Secretary).
I.R.C. § 4051(a)(3) Exclusion For Trailers Weighing 26,000 Pounds Or Less
The tax imposed by paragraph (1) shall not apply to truck trailer and semitrailer chassis and bodies, suitable for use with a trailer or semitrailer which has a gross vehicle weight of 26,000 pounds or less (as determined under regulations prescribed by the Secretary).
I.R.C. § 4051(a)(4) Exclusion For Tractors Weighing 19,500 Pounds Or Less
The tax imposed by paragraph (1) shall not apply to tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer if—
I.R.C. § 4051(a)(4)(A)
such tractor has a gross vehicle weight of 19,500 pounds or less (as determined by the Secretary), and
I.R.C. § 4051(a)(4)(B)
such tractor, in combination with a trailer or semitrailer, has a gross combined weight of 33,000 pounds or less (as determined by the Secretary).
I.R.C. § 4051(a)(5) Sale Of Trucks, Etc., Treated As Sale Of Chassis And Body
For purposes of this subsection, a sale of an automobile truck or truck trailer or semitrailer shall be considered to be a sale of a chassis and of a body described in paragraph (1).
I.R.C. § 4051(b) Separate Purchase Of Truck Or Trailer And Parts And Accessories Therefor
Under regulations prescribed by the Secretary—
I.R.C. § 4051(b)(1) In General
If—
I.R.C. § 4051(b)(1)(A)
the owner, lessee, or operator of any vehicle which contains an article taxable under subsection (a) installs (or causes to be installed) any part or accessory on such vehicle, and
I.R.C. § 4051(b)(1)(B)
such installation is not later than the date 6 months after the date such vehicle (as it contains such article) was first placed in service,
then there is hereby imposed on such installation a tax equal to 12 percent of the price of such part or accessory and its installation.
I.R.C. § 4051(b)(2) Exceptions
Paragraph (1) shall not apply if—
I.R.C. § 4051(b)(2)(A)
the part or accessory installed is a replacement part or accessory, or
I.R.C. § 4051(b)(2)(B)
the aggregate price of the parts and accessories (and their installation) described in paragraph (1) with respect to any vehicle does not exceed $1,000 (or such other amount or amounts as the Secretary may by regulations prescribe).
I.R.C. § 4051(b)(3) Installers Secondarily Liable For Tax
The owners of the trade or business installing the parts or accessories shall be secondarily liable for the tax imposed by paragraph (1).
I.R.C. § 4051(c) Termination
On and after October 1, 2022,1 the taxes imposed by this section shall not apply.
1 The termination date for this provision was extended under section 702 of the Surface Transportation Revenue Act of 1991, P.L. 102-240.
I.R.C. § 4051(d) Credit Against Tax For Tire Tax
If—
I.R.C. § 4051(d)(1)
tires are sold on or in connection with the sale of any article, and
I.R.C. § 4051(d)(2)
tax is imposed by this subchapter on the sale of such tires,
there shall be allowed as a credit against the tax imposed by this subchapter an amount equal to the tax (if any) imposed by section 4071 on such tires.
(Added by Pub. L. 97-424, title V, Sec. 512(b)(1), Jan. 6, 1983, 96 Stat. 2174, and amended Pub. L. 98-369, div. A, title VII, Sec. 734(g), title IX, Sec. 921, July 18, 1984, 98 Stat. 980, 1009; Pub. L. 99-514, title XVIII, Sec. 1877(c), 1899A(47), Oct. 22, 1986, 100 Stat. 2902, 2961; Pub. L. 100-17, title V, Sec. 502(a)(2), Apr. 2, 1987, 101 Stat. 256; Pub. L. 101-508, title XI, Sec. 11211(c)(1), Nov. 5, 1990, 104 Stat. 1388-426; Pub. L. 102-240, title VIII, Sec. 8002(a)(1), Dec. 18, 1991; Pub. L. 105-34, title XIV, Sec. 1401, 1402, 1432, Aug. 5, 1997, 111 Stat 788; Pub. L. 105-178, title IX, Sec. 9002(a)(1)(D), June 9, 1998, 112 Stat 107; Pub. L. 109-59, title XI, Sec. 11101(a)(1)(D), 11112(a), Aug. 10, 2005, 119 Stat. 1144; Pub. L. 112-30, title I, Sec. 142(a), Sept. 16, 2011, 125 Stat. 342; Pub. L. 112-102, title IV, Sec. 402(a), Mar. 30, 2012, 126 Stat. 271; Pub. L. 112-140, Sec. 402(a), June 29, 2012, 126 Stat. 391; Pub. L. 112-141, Sec. 40102(a), July 6, 2012, 126 Stat. 405; Pub. L. 114-94, Div. C, title XXXI, Sec. 31102(a)(2)(B), Dec. 4, 2015; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(219), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018 - Subsec. (a)(3). Pub. L. 115-141, Div. U, Sec. 401(a)(219), amended par. (3) by substituting “Secretary).” for “Secretary.”.
2015 - Subsec. (c). Pub. L. 114-94, Sec. 31102(a)(2)(B), amended subsec. (c) by substituting “October 1, 2022” for “October 1, 2016”.
2012 - Subsec. (c). Pub. L. 112-141, Sec. 40102(a)(2)(B), amended subsec. (c) by substituting “October 1, 2016” for “July 1, 2012”.
Subsec. (c). Pub. L. 112-140, Sec. 402(a)(2)(B), amended subsec. (c) by substituting “July 7, 2012” for “July 1, 2012”. Note that Pub. L. 112-140 was enacted as a temporary extension of Federal-aid highway, highway safety, motor carrier safety, transit, and other programs funded out of the Highway Trust Fund pending enactment of a multiyear law reauthorizing such programs [Pub. L. 112-141]. See Special Rule for Execution of Amendments in MAP-21, below, for further explanation.
Subsec. (c). Pub. L. 112-102, Sec. 402(a)(2)(B), amended subsec. (c) by substituting “July 1, 2012” for “April 1, 2012”.
2011 - Subsec. (c). Pub. L. 112-30, Sec. 142(a)(2)(B), amended subsec. (c) by substituting “April 1, 2012” for “October 1, 2011”.
2005 - Subsec. (a)(4)-(5). Pub. L. 109-59, Sec. 11112(a), amended subsec. (a) by redesignating par. (4) as (5) and adding a par. (4).
Subsec. (c). Pub. L. 109-59, Sec. 11101(a)(1)(D), amended subsec. (c) by substituting “2011” for “2005”.
1998 - Subsec. (c). Pub. L. 105-178, Sec. 9002(a)(1)(D), amended subsec. (c) by substituting “2005” for “1999”.
1997 - Subsec. (b)(2)(B). Pub. L. 105-34, Sec. 1401(a), amended subpar. (B) by substituting “$1,000” for “$200”.
Subsec. (d). Pub. L. 105-34, Sec. 1432(a), struck subsec. (d). Prior to being struck it read as follows:
“(d) Temporary reduction in tax on certain piggyback trailers
(1) In general
In the case of piggyback trailers or semitrailers sold within the 1-year period beginning on July 18, 1984, subsection (a) shall be applied by substituting “6 percent” for “12 percent”.
(2) Piggyback trailers or semitrailers
For purposes of this subsection, the term “piggyback trailers or semitrailers” means any trailer or semitrailer--
(A) which is designed for use principally in connection with trailer-on-flatcar service by rail, and
(B)
(i) both the seller and the purchaser of which are registered in a manner similar to registration under section 4222, and
(ii) with respect to which the purchaser certifies (at such time and in such form and manner as the Secretary prescribes by regulations) to the seller that such trailer or semitrailer--
(I) will be used, or resold for use, principally in connection with such service, or
(II) will be incorporated into an article which will be so used or resold.
(3) Additional tax where nonqualified use
If any piggyback trailer or semitrailer was subject to tax under subsection (a) at the 6 percent rate and such trailer or semitrailer is used or resold for use other than for a use described in paragraph (2)--
(A) such use or resale shall be treated as a sale to which subsection (a) applies,
(B) the amount of the tax imposed under subsection (a) on such sale shall be equal to the amount of the tax which was imposed on the first retail sale, and
(C) the person so using or reselling such trailer or semitrailer shall be liable for the tax imposed by subsection (a).
No tax shall be imposed by reason of this paragraph on any use or resale which occurs more than 6 years after the date of the first retail sale.”
Subsec. (e). Pub. L. 105-34, Sec. 1402(a), amended subsec. (e). Prior to amendment it read as follows:
“(e) Transitional rule
In the case of any article taxable under subsection (a) on which tax was imposed under section 4061(a), subsection (a) shall be applied by substituting “2 percent” for “12 percent”.”
Subsec. (e). Pub. L. 105-34, Sec. 1432(a), redesignated subsec. (e) as subsec. (d).
1991 - Subsec. (c). Pub. L. 102-240, Sec. 8002(a)(1), amended subsec. (c) by substituting “1999” for “1995” each place it appears.
1990 - Subsec. (c). Pub. L. 101-508 substituted ‘1995’ for ‘1993’.
1987 - Subsec. (c). Pub. L. 100-17 substituted ‘1993’ for ‘1988’.
1986 - Subsec. (d)(1). Pub. L. 99-514, Sec. 1899A(47), substituted ‘July 18, 1984’ for ‘the date of the enactment of the Tax Reform Act of 1984’.
Subsec. (d)(3). Pub. L. 99-514, Sec. 1877(c), inserted at end ‘No tax shall be imposed by reason of this paragraph on any use or resale which occurs more than 6 years after the date of the first retail sale.’
1984 - Subsec. (b)(3). Pub. L. 98-369, Sec. 734(g), substituted ‘The owners of the trade or business installing the parts or accessories shall be secondarily liable for the tax imposed by paragraph (1)’ for ‘In addition to the owner, lessee, or operator of the vehicle, the owner of the trade or business installing the part or accessory shall be liable for the tax imposed by paragraph (1)’.
Subsecs. (d), (e). Pub. L. 98-369, Sec. 921, added subsec. (d) and redesignated former subsec. (d) as (e).
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115-141, Div. U, Sec. 401(a)(219), effective March 23, 2018.
EFFECTIVE DATE OF 2015 AMENDMENT
Amendment by Sec. 31102 of Pub. L. 114-94 effective on October 1, 2016.
EFFECTIVE DATE OF 2012 AMENDMENTS
Amendment by Sec. 40102(a) of Pub. L. 112-141 effective on July 1, 2012.
Amendment by Sec. 402(a) of Pub. L. 112-140 effective on July 1, 2012.
Amendment by Sec. 402(a) of Pub. L. 112-102 effective on April 1, 2012.
EFFECTIVE DATE OF 2011 AMENDMENT
Amendment by Sec. 142(a) of Pub. L. 112-30 effective on October 1, 2011.
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendment by Sec. 11101(a) of Pub. L. 109-59 effective on the date of the enactment of this Act [Enacted: Aug. 10, 2005].
Amendments by Sec. 11112(a) of Pub. L. 109-59 effective for sales after September 30, 2005.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Sec. 9002(a) of Pub. L. 105-178 effective on June 9, 1998.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 1401(a) of Pub. L. 105-34 applicable to installations on vehicles sold after the date of the enactment of this Act [Enacted: Aug. 5, 1997].
EFFECTIVE DATE OF 1991 AMENDMENTS
Amendment by Sec. 8002(a)(1) of Pub. L. 102-240 effective on December 18, 1991.
Amendments by Sec. 1402 of Pub. L. 105-34 effective on January 1, 1998.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 1877(c) of Pub. L. 99-514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99-514, set out as a note under section 48 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Section 736 of subtitle C (Sec. 731-736) of title VII of div. A of Pub. L. 98-369 provided that: ‘Except as otherwise provided in this subtitle, any amendment made by this subtitle (amending this section and sections 48, 1366, 4052, 4053, 4071 to 4073, 4081, 4082, 4216, 4218, 4221 to 4223, 4227, 4481, 6401, 6412, 6416, 6427, 6511, and 9502 of this title, repealing sections 4061 to 4063 of this title, and amending provisions set out as notes under sections 4061 and 4081 of this title) shall take effect as if included in the provisions of the Highway Revenue Act of 1982 (Pub. L. 97-424) to which such amendment relates.'
EFFECTIVE DATE
Section 512(b)(3) of Pub. L. 97-424 provided that: ‘The amendments made by this subsection (enacting this subchapter and amending section 6416 of this title) shall take effect on April 1, 1983.’
SPECIAL RULE FOR EXECUTION OF AMENDMENTS IN MAP-21 [Pub. L. 112-141]
Sec. 1(c) of Pub. L. 112-140 provided the following rule:
“(c) SPECIAL RULE FOR EXECUTION OF AMENDMENTS IN MAP-21.—On the date of enactment of the MAP-21 [Pub. L. 112–141, enacted July 6, 2012]—
“(1) this Act and the amendments made by this Act shall cease to be effective;
“(2) the text of the laws amended by this Act shall revert back so as to read as the text read on the day before the date of enactment of this Act; and
“(3) the amendments made by the MAP-21 shall be executed as if this Act had not been enacted.”
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of this title.
PRIOR PROVISIONS
A prior section 4051, act Aug. 16, 1954, ch. 736, 68A Stat. 479, which defined the price for which articles were sold for purposes of determining retailers excise taxes, was repealed by Pub. L. 94-455, title XIX, Sec. 1904(a)(1)(D), Oct. 4, 1976, 90 Stat. 1811.