[Congressional Record Volume 147, Number 66 (Tuesday, May 15, 2001)]
[Senate]
[Page S4941]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INHOFE:
  S. 878. A bill to amend the Internal Revenue Code of 1986 to prorate 
the heavy vehicle use tax between the first and subsequent purchasers 
of the same vehicle in one taxable period; to the Committee on Finance.
  Mr. INHOFE. Mr. President, I rise today to talk about a bill that 
will help many truck-drivers across the country. As we all know, the 
trucking industry has incurred an incredible cost increase in recent 
years due to higher fuel prices and other taxes. One of my 
constituents, Phillip Parks, has felt this tremendous financial burden 
and, as a result, sold his truck and got out of the business 
altogether.
  The heavy vehicle use tax is one tax many truck drivers, like Mr. 
Parks, are required to pay each year. Under the current IRS code, when 
a vehicle over 75,000 pounds is purchased and driven over 5,000 miles, 
the owner must pay a $550 heavy-use tax. However, if the owner sells 
the vehicle in the same year, he or she is unable to receive a refund 
on this tax, while the person buying the vehicle does not have to pay 
the tax during that year since it has already been paid. This is what 
happened to Mr. Parks.
  My bill will not only make this tax more fair, but will provide some 
much-needed relief for people who wish to sell their trucks within the 
same year they bought them. The Heavy Vehicle Use Tax Equity Act will 
require the purchaser to pay a prorated tax on the vehicle, while the 
person selling it will receive a refund for the portion of the tax 
relative to the time in which they owned it.
  I am pleased to introduce this bill that will help make our complex 
tax code more equitable while putting money back into the hands of 
hard-working Americans, like Phillip Parks of Stillwell, OK.
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