The gas guzzler tax that is imposed on sales of the new
Lincoln 120-inch limousines increased from $1,700 to $2,100
this month. Thus causing coachbuilders to adjust prices.
"The Gas Guzzler Tax is based on the vehicles fuel
economy," said Dan Mitchell, president of DaBryan Coach
Mitchell explained that the increased weight allowed by the
new Town Cars is the reason for the change in fuel economy,
and thus the increase in tax.
The Gas Guzzler Tax was established by the Energy Tax Act
of 1978, and was placed on the sale of new model year
vehicles whose fuel economy fails to meet certain statutory
levels (vehicles deemed luxury vehicles). When the fuel
economy changes, so does the amount of tax that is placed
on the vehicle.
More information will be available in the September issue