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The Inside Story of the Fuel Tax Issue:
The Federal Government has made a ruling effective January 1st 2005. This ruling states that concrete pumps that use the Federal highways will have an exemption on Federal fuel tax as long as they do not exceed 7,500 road miles per year. In the event you do 7,501 miles per year you must pay all of the Federal Tax. The Federal Government wants this done as a rebate at the end of the year, and they do not want any Concrete Pumpers using Red or Dyed fuel. The American Concrete Pumping Association is trying to get a modification on this regulation that will change this. The earliest that we might get a change is probably going to be 2007. There is an outside chance that a modification could be forth coming prior to this date, but for now we are bound to the 7,500 mile limit. EDL will post any breaking news on this issue as we become aware of it.
The exemption states only that the unit must not use the Highways more then 7,500 miles, so you can take advantage of the law on units that are under this for the year, but also units that you acquire during the year that do not go over the required 7,500 miles.
One of the good things that came out of this political process is the fact that our Mobile Equipment is Exempt from "FET" tax on the tires you buy. This will add up for a large fleet owner and it will help a small owner on his tire costs. The American Concrete Pumping Association has a copy of this ruling for your records. Call them at 614-431-5618 and they will E-mail you or fax you a copy of the ruling. I suggest that you also join the ACPA if you have not already done so. The ACPA is "our" organization and they work only on projects that are beneficial to Concrete Pumpers and their people.
Ed Lothamer |
