Operations

Gas Guzzler Tax Increases

LCT Staff
Posted on July 18, 2002

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 Builders, Inc.

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 of LCT

LCT Staff LCT Staff
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