On September 15, 2014, Congressman Roger Williams (R-TX25) and Congressman Earl Blumenauer (D-OR03) introduced the American Concrete Pump Tax Fairness Act of 2014 (HR 5474). This bill rights the wrong of the 2004 JOBS Act that indirectly prevented concrete pumps from maintaining their previous fuel tax exemption by applying a 7500 miles per year prerequisite. As an ACPA study has proven, over fifty-five percent of the average concrete pump’s fuel is consumed in jobsite operations, rather than for vehicle propulsion on highways. HR 5474 will replace the current 24.4cent per gallon tax on diesel fuel concrete pumpers now pay and replace with a user fee of 5 cents per mile for pumps weighing less than 60,000 lbs, and 7 cents per mile for any pumps exceeding 60,000 pounds. The bill also directs the Secretaries of Transportation and Treasury to develop a collection system that integrates with state and local transportation revenue mechanisms; minimizes the administrative burden on pump owners and operators; works in tandem with existing technology; and, allows for private sector administrators. By passing this bill, concrete pumpers will stop paying almost double in taxes per mile compared to other commercial vehicles (i.e. mobile cranes, agricultural vehicles, etc.).
In the coming weeks, you will be asked to contact your member of Congress and encourage them to “sign on” to HR 5474. The good news is that this bill is being sponsored by a Republican and a Democrat, offers a solution for future funding of the Highway Trust Fund yet, is a relatively very small ask in terms of budgeting.
Stay tuned!