ACPA Delegation Heads to Washington

Despite a distracting, yet somewhat entertaining Donald Trump rally on the steps of the Capitol, members of the ACPA visited Capitol Hill on September 9-10 to call on key members of the House of Representatives Transportation and Infrastructure and Ways and Means Committees to support legislation which would seek to correct unfair taxation of fuel consumed by concrete pumps.

The message was a continuation of the industry’s pursuit of obtaining relief from fuel tax paid while the pump is off-road, or while in PTO, as opposed to paying 100 percent of fuel tax. Current legislation, HR 1256, the Concrete Pump Tax Fairness Act, would establish taxing concrete pumps on the number of miles used on the roadways—regardless of the number of miles traveled—instead of the current law, which levies a 100 percent tax on all concrete pump fuel usage for pumps that travel over an arbitrary 7,500 mile-per-year maximum allowance. Most, if not all, concrete pumps exceed the 7,500 mile threshold in a calendar year, yet a disproportionate amount of fuel is consumed off road. Concrete pump fuel use is on average 55 percent off road, versus 45 percent on road.

The legislation would also provide the government with valuable input for eventually establishing a federal highway user fee program, based on a driver’s miles driven, as an intended solution to the current downward funding deficit from taxing per gallon. (Think Tesla versus Corvette—both use the roadways, yet Corvette pays taxes via their gas and Tesla doesn’t because it is electric; while if they were assessed per mile, they would both pay taxes.)

To gain support for our language in HR 1256, we are pushing through the House of Representatives a letter from members of Congress to the Ways and Means Committee to help the concrete pumping industry. You and your colleagues can ask your representative to sign onto the letter through the ACPA website.

Although feedback from House and Senate offices remains positive, the real stumbling block continues to be the constant extension of a long-term highway bill. SAFETEA LU, the Safe, Accountable, Flexible, Efficient, Transportation Equity Act was passed August 10, 2005—over 10 years ago.

Contained in SAFETEA LU was language that directed the IRS to work with concrete pumps in establishing an average of number of gallons used off road, versus on road. Using data compiled from the electronic control modules (ECMs) of over 500 concrete pumps from Hawaii to Maine, the 55 percent off road fuel usage was proven. Since this time, the ACPA has actively pursued tax relief in the form of a rebate/credit or in a user-based fee.

The current highway extension is set to expire October 31, 2015. Be sure to visit the ACPA website to petition your representative to sign the letter being written to the House Committee on Ways and Means in order to help alleviate the unfair tax burden on the concrete pumping industry.