Number: RS20314
Title: Luxury Excise Tax on Passenger Vehicles
Authors: Louis Alan Talley, Government and Finance Division 
Abstract: 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.
Pages: 4
Date: March 7, 2002