What is the Gas Guzzler Tax?

[Mike Mike]

What is the Gas Guzzler Tax?

[camcojb]

copied this off the web:


What is the Gas Guzzler Tax?

The Energy Tax Act of 1978 established a Gas Guzzler Tax on the sale of new model year vehicles whose fuel economy fails to meet certain statutory levels. The gas guzzler tax applies only to cars (not trucks) and is collected by the IRS.

The fuel economy figures used to determine the Gas Guzzler Tax are different from the fuel economy values provided on this web site and in the Fuel Economy Guide. The tax does not depend on your actual on-the-road mpg, which may be more or less than the EPA published value. The purpose of the Gas Guzzler Tax is to discourage the production and purchase of fuel inefficient vehicles. The amount of any applicable Gas Guzzler Tax paid by the manufacturer will be disclosed on the automobile's fuel economy label (the window sticker on new cars).

GAS GUZZLER TAX
Unadjusted MPG (combined)* Tax
at least 22.5 No tax
at least 21.5, but less than 22.5 $1000
at least 20.5, but less than 21.5 $1300
at least 19.5, but less than 20.5 $1700
at least 18.5, but less than 19.5 $2100
at least 17.5, but less than 18.5 $2600
at least 16.5, but less than 17.5 $3000
at least 15.5, but less than 16.5 $3700
at least 14.5, but less than 15.5 $4500
at least 13.5, but less than 14.5 $5400
at least 12.5, but less than 13.5 $6400
less than 12.5 $7700

* The combined fuel economy MPG value (55% city, 45% highway) is used to determine tax liability. The MPG value is also adjusted slightly to account for differences in test procedures made since the base year, but it is not adjusted for in-use short fall. The unadjusted combined MPG of a vehicle can be approximated from the city and highway values provided in the Fuel Economy Guide and on this website by the following equation:

(1/(.495/City MPG + .351/Highway MPG)) + .15

Since this is an approximate calculation, the actual gas guzzler tax may be off by one tax bracket.

[Steve1968LS2]

I think the new Challenger has a $2,600 tax.

It's very ironic if you think of it. Gasoline is already heavily taxed, so a car that gets worse mileage already pays a higher tax though increased consumption.

But, some politician figured out another way to pry more money out of peoples pockets under the guise of "protecting the enviorment" and "conservation".

[Musclerodz]

I remember when the new GTO came out the 6 speeds had no tax and the automatics had a $1000 tax on them.

Mike

[rwhite692]

This Tax is one of the reasons I bought my car as a very low mile used car...Funny, my SRT8 is both a gas guzzler, AND qualifies as an ultra-low emissions vehicle to the California Air Resources Board...

[ArisESQ]

Originally Posted by Musclerodz

I remember when the new GTO came out the 6 speeds had no tax and the automatics had a $1000 tax on them.

Mike

Thats because GM made the 6 speed with that 1st to 4th shift, which eliminated the use of 2nd and 3rd gear in normal city driving, bu forcing you to shift into 4th when you aren't on it. 2nd and 3rd gears I guess gave the worst fuel economy, so by eliminating them in normal driving, it allowed the car to achieve the necessary MPG to stay out of the taxable bracket.
Same thing with Z06. None of them have Gas Guzzler tax, and it's basically because of that 1st to 4th shift.

[Van B]

Originally Posted by ill steez

Thats because GM made the 6 speed with that 1st to 4th shift, which eliminated the use of 2nd and 3rd gear in normal city driving, bu forcing you to shift into 4th when you aren't on it. 2nd and 3rd gears I guess gave the worst fuel economy, so by eliminating them in normal driving, it allowed the car to achieve the necessary MPG to stay out of the taxable bracket.
Same thing with Z06. None of them have Gas Guzzler tax, and it's basically because of that 1st to 4th shift.

Uh huh. Or possibly because the manual trans has less parasitic drag and therefore gets better mileage.

[ArisESQ]

Originally Posted by Van B

Uh huh. Or possibly because the manual trans has less parasitic drag and therefore gets better mileage.

probably both.