How does Ford avoid the Gas Guzzler Tax?

[Herr_Poopschitz]

How could the 2016 GT350 have paid the Gas Guzzler Tax? The tax isn't even computed until after the model year run...much less paid. Has Ford said that their will be a GG Tax on these vehicles? Maybe to justify an outrageous price? Mmmm

The tax is established based on EPA gas mileage tests. The mpgs are determined when the cars go on sale, right? Ergo, the tax is determined, and charged at the point of sale.

If you look at the GT350 stickers, there is a $1300 GG tax applied because it gets shit mpgs.

I think you're confusing yourself by overthinking this.

 

[Rough Hollow Man]

Look at the actual IRS form in how the GG Tax is computed by "model". What you see is an EPA approximation on the car's window sticker of the mileage and what could be the GG tax. The actual tax is not computed until after the model run year numbers are reported to the IRS. And please tell me what this "foolishness" accomplishes?

 

[Herr_Poopschitz]

Look at the actual IRS form in how the GG Tax is computed by "model". What you see is an EPA approximation on the car's window sticker of the mileage and what could be the GG tax. The actual tax is not computed until after the model run year numbers are reported to the IRS.

Link to IRS form you're talking about...none have been shared here?:shrug:

...or quote "exactly" what wording you're having problems w/. Copy and paste. I'll help you understand if I can, but I'm not going to dig for answers to what might not be your exact question...I don't ever plan on needing to understand the nitty gritty of this code.

From the EPA document shared in the first post...

"The total amount of the tax is determined later and is based on the total number of gas guzzler vehicles that were sold that year. It is assessed after production has ended for the model year and is paid by the vehicle manufacturer or importer."

The IRS doesn't know how much total tax to impose on Ford if they don't know the total sales numbers, do they? Ford reports the number of GT350s sold times $1300, and that's their tax liability, yes? They can't do this at the beginning of the year before the cars are sold, can they?:shrug:

And please tell me what this "foolishness" accomplishes?

Again, direct from the paperwork linked to in the first post...

"The tax is intended to discourage the production and purchase of fuel inefficient vehicles."

 

[Rough Hollow Man]

IRS Tax Form 6197 is used to provide the number of vehicles by model so as to compute the tax required. The real question here is whether or not Ford is averaging all the different Mustang engine iterations into one Mustang "model" or not. Are they considering the Shelby Mustang as a separate "model" so as not to drag down the overall Mustang averages. Thanks for offering to help explain this. As to the intent of the tax...it is not discouraging the production or purchase of fuel inefficient vehicles...now is it? Thanks.

 

[Herr_Poopschitz]

IRS Tax Form 6197 is used to provide the number of vehicles by model so as to compute the tax required. The real question here is whether or not Ford is averaging all the different Mustang engine iterations into one Mustang "model" or not. Are they considering the Shelby Mustang as a separate "model" so as not to drag down the overall Mustang averages. Thanks for offering to help explain this. As to the intent of the tax...it is not discouraging the production or purchase of fuel inefficient vehicles...now is it? Thanks.

Looked at it and yep, calc is simply GT350s sold x $1300.

They are not averaging. You could think of a GT350 as a 'model' all its own. This is a very loose usage of the term 'model'. Just as was pointed out, a manual trans may be exempt if it gets better mileage than an automatic of the same 'model'. The tax liability is calculated based on the individual car/drivetrain, similar to the variables associated w/ the window stickers. If a GT were offered w/ the 5.2, the combination of parts would force the mpgs down, and it would be taxed...while a normal 5.0 GT would not.

As for the intent...that could be argued round and round...I see both sides...also no way I'm getting into that quagmire on an internet forum...

 

[Rough Hollow Man]

^OK great...and I believe you're right. Seems like the GT350 is in fact being reported as a separate "model" for tax purposes, while the other Mustangs are averaging all variants together so as not to pay the tax.

 

[Herr_Poopschitz]

^OK great...and I believe you're right. Seems like the GT350 is in fact being reported as a separate "model" for tax purposes, while the other Mustangs are averaging all variants together so as not to pay the tax.

There is no averaging going on anywhere.

 

[Rough Hollow Man]

There is no averaging going on anywhere.

If there is "no averaging going on anywhere", then how come the GT does not pay the Gas Guzzler Tax? Isn't their EPA average mileage number below 22.5?:frusty: The original post brought this issue up.:shrug:

 

[marylandspeed]

I think a different mileage number is used for CARB.

 

[Herr_Poopschitz]

If there is "no averaging going on anywhere", then how come the GT does not pay the Gas Guzzler Tax? Isn't their EPA average mileage number below 22.5?:frusty: The original post brought this issue up.:shrug:

Read my first post, I even highlighted it. They don't use the numbers on the sticker.

 

[Rough Hollow Man]

So what number is used for the GT?

 

[Herr_Poopschitz]

So what number is used for the GT?

>22.5 is all we can conclude.

Email and ask. Why does it matter?

 

[fogus]

>22.5 is all we can conclude.

Email and ask. Why does it matter?

I was just curious, that's all.

 

[Rough Hollow Man]

Great Question

I was just curious, that's all.

Fogus asked one of the more salient questions IMO in quite some time. We'll have to watch the automotive press to see developments in the imposition of the Gas Guzzler Tax on particular "models". I believe this tax should be repealed.:headbonk:addle:

 

[Herr_Poopschitz]

Fogus asked one of the more salient questions IMO in quite some time. We'll have to watch the automotive press to see developments in the imposition of the Gas Guzzler Tax on particular "models". I believe this tax should be repealed.:headbonk:addle:

Watch the press on a tax that went into effect in 1978?:shrug:

Good luck w/ that.

You born and raised in TX?