H.R. 9258: Concrete Pump Tax Fairness Act

This bill would change how federal taxes are handled for mobile mounted concrete boom pumps, which are vehicles that carry a concrete boom pump used to place concrete at construction sites.

What it would do

• It would create a new federal mileage-based user fee for these vehicles.
• The fee would be charged for each mile the vehicle travels in the United States.
• The rate would be:
  • $0.05 per mile for vehicles weighing 60,000 pounds or less
  • $0.07 per mile for vehicles weighing more than 60,000 pounds
• The owner of the vehicle would be responsible for paying the fee.

How it would work with existing taxes

• The bill would let the taxpayer choose to apply certain existing federal fuel-related taxes as a credit against this new mileage fee.
• It also changes related tax rules so that these vehicles are treated differently under the current fuel tax exemption and refund system.
• In practical terms, the bill appears intended to replace or offset some current fuel-tax treatment for these vehicles with a mileage-based charge instead.

Collection and administration

• The fee would be reported and paid quarterly, based on a return filed for each calendar quarter.
• Payment would generally be due 14 days after the end of the quarter.
• The IRS would administer the fee in a manner similar to an excise tax.
• The Treasury and Transportation departments would be directed to develop a mileage-tracking system that:
  • works with technology already in the vehicles,
  • minimizes paperwork for owners and operators,
  • minimizes administrative burden on government agencies,
  • can work with state and local transportation revenue systems,
  • protects privacy, and
  • can use third-party administrators to handle data collection and refunds.

Where the money would go

• The bill would direct the revenue from this new fee into the Highway Trust Fund.

When it would take effect

• The changes would apply to taxable years beginning after the date of enactment.

Relevant Companies

None found