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In Purchasing a TWAMCO trailer when do Federal Excise Tax Laws enter the picture?

April 26, 2017enter Federal Laws picture purchasing tax trailer twamco

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In Purchasing a TWAMCO trailer when do Federal Excise Tax Laws enter the picture?

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A. FET does not apply to all trailers! Federal Excise Tax (12%) applies only to equipment trailers with a rating of 26,000 lbs. GVWR (Gross Vehicle Weight Rating) or greater, trailers with a rating below this are not subject. Also, if a trailer is strictly “Off-Highway” (Farms and Mines for example) Federal Excise Tax does not apply. If further questions arise feel free to contact us. Q. After I purchase a TWAMCO trailer will I be able to buy special permits which will cover my trailer if the Manufacturer’s rated capacity is exceeded. A. No! If you exceed the rated sidewall capacity of your trailer tire’s you’ll be in violation of the law and consequences will apply. It is vital that your trailer be designed so “over-loading” never occurs. Our Engineering Department can offer help and advise with issues regarding this matter.