WASHINGTON (July 14)—Michelin North America Inc. is backing a change to the computation of tire excise taxes that currently is in two pieces of House legislation, including its version of highway reauthorization.
The provision would change the basis of the tax to load capacity from weight, according to Steve Evered, Michelin director of government affairs. "The current tax law dates back to the 1920s," he said. "We need to bring it into the 21st century."
Although the Joint Committee on Taxation and the Treasury Department have said the provision is revenue-neutral, the Tire Industry Association is wary of any change to the current excise tax law, which provides an important price differential between new and retreaded truck radials. TIA board members had scheduled a conference call July 14 to discuss the issue, said Roy E. Littlefield III, TIA executive vice president.
The Rubber Manufacturers Association has supported tire excise tax simplification in the past, but remained neutral this year because of lack of consensus between members, said John Falardeau, RMA director of government affairs.