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 – [PDF]
  • Feebates, rebates and gas-guzzler taxes: a study of incentives for increased fuel economy – [PDF]
  • Beer cans, gas guzzlers and green taxes: how using tax instead of law may affect environmental policy – [PDF]
  • The whys and hows of energy taxes – [PDF]