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Luxury Excise Tax on Passenger Vehicles (CRS Report for Congress)

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Release Date March 7, 2002
Report Number RS20314
Report Type Report
Authors Louis Alan Talley, Government and Finance Division
Source Agency Congressional Research Service
Summary:

There is a long history of federal taxes on automobiles. The current luxury tax on passenger vehicles was reintroduced with passage of the Omnibus Revenue Reconciliation Act of 1990. Current law provides that the 3 percent tax is applied to that portion of the sales price which exceeds $40,000. Both the tax rate and base are scheduled for adjustment in future years.