Bucks Fab. Switch-N-Go Exempt from 12-Percent Tax

HADLEY, Pa. – Guidelines recently set forth by the Internal Revenue Service (IRS) determine that the Switch-N-Go detachable truck body systems from Bucks Fabricating are exempt from the 12-percent federal excise tax on the retail sale of truck chassis and bodies.

Section 4051(a)(1) under Revenue Procedure 2005-19 determines that the first retail sale of truck chassis and bodies will carry a 12-percent federal excise tax. Vehicles with a gross vehicle weight (GVW) of 33,000 lbs. or less are excluded from this tax under Section 4051(a)(2).

The Switch-N-Go detachable truck body system is manufactured for vehicles 11,000 to 26,000 GVW.  In most states this means that, in purchasing a Switch-N-Go, this 12-percent tax can be avoided.

The decision by the IRS comes after the National Truck Equipment Association’s (NTEA) submission under the Industry Issues Resolution Program. The IRS will no longer challenge classifications of truck body types that meet the “suitable for use” standard due to the efforts of the NTEA.

“We appreciate the proactive stance the NTEA took on this matter,” says Dale Deist, president of Bucks Fabricating, an NTEA member. In the past, discrepancies over the “suitable for use” clause have created problems with competitive disadvantages and frequent audits.

Along with saving the 12-percent tax, the Switch-N-Go system does not require a CDL driver’s license and offers versatility with two conversion bodies, installed hoist unit, fenders and bumpers for about $15,000. The detachable body system allows the owner to switch between over a dozen available bodies on the same truck.

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