[20020307]RS20314_乘用车奢侈品消费税.pdf

Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS20314Updated March 7, 2002Luxury Excise Tax on Passenger VehiclesLouis Alan TalleySpecialist in TaxationGovernment and Finance DivisionSummaryThere is a long history of federal taxes on automobiles. The current luxury tax onpassenger vehicles was reintroduced with passage of the Omnibus RevenueReconciliation Act of 1990. At the time of its reintroduction, its purpose was to increaserevenues to help reduce large projected federal budget deficits. Other luxury taxes werealso introduced at the same time (boats, aircraft, jewelry, and furs) but have since beenrepealed. All of the luxury taxes were based on a sales price exceeding statutoryamounts so as to shift the tax to upper-income individuals. Since passage of the 1990act, the tax has been extended but at reduced rates, the statutory sales price has beeninflation adjusted, and the subsequent installation of small dollar value parts andaccessories are exempted from the tax. The tax rate is 3% for tax year 2002. The taxexpires next year. The tax rate is applied to that portion of the sales price which exceeds$40,000.