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The Gas-Guzzler Tax Still Exists

The gas-guzzler tax was established in the 1980s when more muscle cars were popular.  Although most cars won’t be hit with the gas-guzzler tax, it’s still on the books.  When the tax applies it is reflected in the sales price of a new car.  To avoid this tax, a new car must have a rating of 22.5 mpg or greater.  If a vehicle doesn’t measure up based on EPA testing, the owner is charged on a sliding scale, up to a maximum of $7,700 for cars guzzling up to or more than one gallon every 12.5 miles.  Therefore, when considering the purchase of a new car factor this into your buying decision.  Note that light trucks and SUVs are exempted from this tax.

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