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What is FET and why do I have to pay it?

Posted by on 1/2/2014 to Truck and RV

Federal Excise Tax

What is FET?

FET is an acronym for federal excise tax. It refers to the tax imposed by the federal government on tires used on the road with a maximum load capacity greater then 3500 pounds. Generally this applies to medium truck tires and heavy duty trailer tires.

Do I pay FET on farm and forestry tires?

No, FET is only charged on tires that are used on the road. They do not apply to farm, forestry, OTR, lawn tractor or ATV tires. You also do not pay FET on car and light truck tires as long as their carrying capacity is not greater then 3500 pounds.

What is a taxable tire?

The IRS defines a taxable tire as any tire used on highway vehicles made partially or fully of rubber and marked for highway use. A bias ply tire is defined as a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the center-line of the tread. A super single tire is defined as a tire greater than 13 inches in cross section width designed to replace two tires in a dual fitment, but does not include any tire designed for steering

Who collects the FET?

The retailer of the tires is responsible for collecting the FET from the end user of the tires.

How is FET calculated on truck tires?

The FET is calculated based on how much weight the tire can carry. For every 10lbs of carrying capacity over 3500 pounds a tax of $0.945 is charged. ($0.4725 for bias ply tires and super single tires)

IRS Definitions are from IRS Form 720
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