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Gas Guzzler Tax

What is 'Gas Guzzler Tax'

An additional tax on the sale of vehicles that have poor fuel economy. The Energy Tax Act of 1978 established the gas guzzler tax and was designed to encourage the production and use of more fuel efficient vehicles. The gas guzzler tax is administered to passenger cars, trucks, minivans and SUVs.

Explaining 'Gas Guzzler Tax'

A vehicle is subject to a tax if it gets less than a certain number of miles per gallon. This is one of many reasons why you no longer see car manufacturers producing 1970s-style, gas-guzzling, oil-burning vehicles. The tax is posted on the window stickers of new cars; the lower the fuel economy, the higher the tax.


Further Reading


The influence of financial incentives and other socio-economic factors on electric vehicle adoption
www.sciencedirect.com [PDF]
… GAAP; GAAR; gains, capital; gambling tax; garnishee order; gas guzzler tax; gearing; General … valuation; assessment; asset; assigned taxes; Association of Taxation Technicians (ATT); ATII; … aulnager; Australasian Tax Teachers' Association (ATTA); Australian Tax Research Foundation …

Feebates, rebates and gas-guzzler taxes: a study of incentives for increased fuel economyFeebates, rebates and gas-guzzler taxes: a study of incentives for increased fuel economy
www.sciencedirect.com [PDF]
… GAAP; GAAR; gains, capital; gambling tax; garnishee order; gas guzzler tax; gearing; General … valuation; assessment; asset; assigned taxes; Association of Taxation Technicians (ATT); ATII; … aulnager; Australasian Tax Teachers' Association (ATTA); Australian Tax Research Foundation …

Beer cans, gas guzzlers and green taxes: how using tax instead of law may affect environmental policyBeer cans, gas guzzlers and green taxes: how using tax instead of law may affect environmental policy
go.gale.com [PDF]
… GAAP; GAAR; gains, capital; gambling tax; garnishee order; gas guzzler tax; gearing; General … valuation; assessment; asset; assigned taxes; Association of Taxation Technicians (ATT); ATII; … aulnager; Australasian Tax Teachers' Association (ATTA); Australian Tax Research Foundation …

The whys and hows of energy taxesThe whys and hows of energy taxes
www.jstor.org [PDF]
… GAAP; GAAR; gains, capital; gambling tax; garnishee order; gas guzzler tax; gearing; General … valuation; assessment; asset; assigned taxes; Association of Taxation Technicians (ATT); ATII; … aulnager; Australasian Tax Teachers' Association (ATTA); Australian Tax Research Foundation …



Q&A About Gas Guzzler Tax


Who administers the gas guzzler tax?

The Department of Energy administers the gas guzzler tax.

How much does a car with low MPG cost more than one with high MPG?

Cars with low MPG cost significantly more than cars with high MPG because they are subjected to higher taxes. For example, if you buy a car that gets 15 mpg instead of 20 mpg, you will pay $1,000 extra in taxes over five years compared to someone who buys a car that gets 20 mpg instead of 15 mpg."

When was the gas guzzler tax established?

The gas guzzler tax was established in 1978 by the Energy Tax Act.

Why was this law created?

This law was created to encourage production and use of more fuel efficient vehicles.

What is the name of this law?

The Energy Tax Act.

When was it passed?

It was passed on November 9, 1978.

What was the purpose of this law?

This law shifted from oil and gas supply toward energy conservation; thus, to promote fuel efficiency and renewable energy through taxes and tax credits.

What is the gas guzzler tax?

The gas guzzler tax is an additional tax on the sale of vehicles that have poor fuel economy.

Who passed this law?

The United States Congress.

What does a vehicle need to get less than to be subject to this tax?

A vehicle must get less than a certain number of miles per gallon (MPG) in order for it to be subject to this tax.