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Gas Guzzler Tax

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Old 06-30-2007, 10:25 AM
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Default Gas Guzzler Tax

For those of use buying a 6.1 L Hemi, a $2,100 "gas guzzler" (Federal) tax will be added to the sticker price of all SRTs (not 5.7 L R/Ts). This is because of the poorer mileage (i.e., less than 19.5 mpg city/highway).

The following explains how the tax is calculated:

The Energy Tax Act of 1978 established a Gas Guzzler Tax on the sale of new model year vehicles whose fuel economy fails to meet certain statutory levels. The gas guzzler tax applies only to cars (not trucks) and is collected by the IRS.

The fuel economy figures used to determine the Gas Guzzler Tax are different from the fuel economy values provided on this web site and in the Fuel Economy Guide. The tax does not depend on your actual on-the-road mpg, which may be more or less than the EPA published value. The purpose of the Gas Guzzler Tax is to discourage the production and purchase of fuel inefficient vehicles. The amount of any applicable Gas Guzzler Tax paid by the manufacturer will be disclosed on the automobile's fuel economy label (the window sticker on new cars).

GAS GUZZLER TAX
Unadjusted MPG (combined)*
Tax

at least 22.5:
No tax

at least 21.5, but less than 22.5:

$1,000

at least 20.5, but less than 21.5:

$1,300

at least 19.5, but less than 20.5:

$1,700

at least 18.5, but less than 19.5:

$2,100 (6.1 L Hemi)

at least 17.5, but less than 18.5:

$2,600

at least 16.5, but less than 17.5:

$3,000

at least 15.5, but less than 16.5:

$3,700

at least 14.5, but less than 15.5:

$4,500

at least 13.5, but less than 14.5:

$5,400

at least 12.5, but less than 13.5:

$6,400

less than 12.5:

$7,700


* The combined fuel economy MPG value (55% city, 45% highway) is used to determine tax liability. The MPG value is also adjusted slightly to account for differences in test procedures made since the base year, but it is not adjusted for in-use short fall. The unadjusted combined MPG of a vehicle can be approximated from the city and highway values provided in the Fuel Economy Guide and on this website by the following equation:

(1/(.495/City MPG + .351/Highway MPG)) + .15
Since this is an approximate calculation, the actual gas guzzler tax may be off by one tax bracket.

It sucks that we have to pay more money to Uncle Sam, but an SRT is still worth it!


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Old 06-30-2007, 12:51 PM
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Default RE: Gas Guzzler Tax

NP, that will be a drop in the bucket for what I've got planned for this car..
Old 07-01-2007, 06:17 AM
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Default RE: Gas Guzzler Tax

The Gas Guzzler tax was applied to automatic transmissions only. Or at least it was. For the GTO and vettes, a 1300 dollar gas guzzler tax was applied to just the automatics. For those with manuals, to get around this we have a skip shift feature. For those of you who don't know what this feature is:

To eliminate the quick bang into second gear this feature locks you out of second gear and directs you into 4th gear. You must reach a speed of about 18-20 MPH or about 2000 on the tach to get into second gear. On the dash, it flashes up and is displayed, a shift diagram with a 1x4 indicator light when you get close to the minimum 2nd gear shift speed. Once you hit the minimum shift speed this diagram disappears. This feature does not affect down shifting into 2nd.

It can be annoying when first getting used to this feature, but you can sense by hearing when to shift to avoid being locked out. Many have installed a gadget that bypasses this feature. It is inexpensive and can be installed in a few minutes. I generally shift 1-3-5-6 for fuel economy reasons, and I rarely shift into second when coming from a stop.

If Chrysler does not offer manual for the Challenger all buyers will all be nailed for this nuisance tax. This tax does not affect used cars, just new.
Old 08-28-2007, 09:08 AM
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Default RE: Gas Guzzler Tax

As many of you already know, the EPA has revised its testing procedures for the 2008 models. This has created a fear that even the 5.7 Hemi would be subject to the dreaded gas guzzler tax (i.e., $2,000) based on its advertised EPA 15 city, 23 highway mileage.

Rest assured that this will not happen. Apparently, the car manufacturers are able to use higher mileage figures based on the following:

"EPA studies indicate that vehicles driven by typical drivers under typical road conditions get approximately 90 percent of the laboratory test-based city miles per gallon (mpg) value and approximately 78 percent of laboratory highway mpg value. This difference is referred to as “in-use shortfall.” To account for the in-use shortfall, the city and highway mpg values listed in Fuel Economy Guide and shown on fuel economy labels are multiplied by 0.90 for the city test and 0.78 for the highway test. However, the combined city and highway fuel economy that is used to determine tax liability is not adjusted to account for in-use shortfall, so it is higher than the mpg values provided in the Fuel Economy Guide (www.fueleconomy.gov) and posted on the window stickers of new vehicles."

Old 08-28-2007, 10:44 AM
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Default RE: Gas Guzzler Tax

The dreaded sin tax on cars. I don't care about that stupid tax, I'll get it and do burn outs in front of the politicans who support such a tax and laugh saying "I didn't buy carbon credits and I'm not going to either." Nothing is going to stop me from getting the top model. The manual should get better fuel mileage I would think.
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Old 08-31-2007, 07:24 AM
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Default RE: Gas Guzzler Tax

Thats why I'm getting a manual... for the gas mileage.
Old 08-31-2007, 02:44 PM
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Default RE: Gas Guzzler Tax

I am getting a manual because I like the feel of a pistol in my hand.

Maybe I will get Pachmyr grips added.
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Old 09-06-2007, 05:31 AM
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Default RE: Gas Guzzler Tax

I don't think it matters anymore what the transmission is.... they're going strictly by the EPA numbers alone. That Shelby I got to take for a spin was a 5 speed, and had a 1000 dollar gas guzzler tax added onto the sticker.
Old 09-06-2007, 06:37 AM
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Default RE: Gas Guzzler Tax

Joke, just joking. I did'nt intend to buy this car for its gas mileage. I'm buying because they finally built a car that has my name on it. And I want to be shifting gears and enjoying the RIDE. I won't be in the physical shape I'm in now, forever. So I will enjoy it as long as I can
Old 09-06-2007, 03:17 PM
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Default RE: Gas Guzzler Tax

When you get older, lear4406, you'll want to recall that back in the '70s, there was a Volkswagen ad on TV advertising their "automatic stick shift." It was done like a medicine show where the car was guaranteed to cure broken right arms and gout of the left leg -- just in case you ever suffer those ailments.


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