In the middle of September, with both houses of Congress back in session, national news headlines are dominated by talk of one thing: A possible federal government shutdown.
It would be easy to think all that is happening in our nation’s capital these days is bickering and haggling over solutions to fund the government.
Yet the gears of a federal government employing more than 2 million civilians grind on, even when they appear to move only in one direction.
As Congress returned from its August recess, members representing RVIA and RVDA are making a renewed push to encourage legislators to adopt the Travel Trailer and Camper Tax Parity Act.
The legislation, which was introduced by RV industry champions Rudy Yakym (R-Ind.) and Dina Titus (D-Nev.), would correct a disparity in the way federal taxes are deducted from RV floorplan financing interest.
When Donald Trump’s administration worked with Congress to pass the 2017 Tax Cuts and Jobs Act, the overhaul included a change to the way interest could be deducted on motor vehicles, addressing auto dealers’ concerns.
The language included in the Tax Cuts and Jobs Act defined a motor vehicle as a “self-propelled” vehicle. Because towable RVs did not fall under the definition, RV dealers have since maintained different accounting for motorized inventory and towable inventory.
More than 85% of all RVs sold are towables. The floorplan interest on towable RVs is subject to a 30% limitation on interest expenses, based on earnings before interest and taxes, while motorized RVs are fully deductible.
The difference equates to $100 million in potential savings for the RV industry, according to RVIA’s estimated figures.
Full stop. Record scratch.
Yes, you read that right. A small, simple tax change correction adopted now could save the industry up to $100 million a year!
We are not talking small stuff. This is important, and that is why the issue has been among the top legislative priorities for RVIA and RVDA since the Tax Cuts and Jobs Act passed.
RVIA Senior Manager of Government Affairs Samantha Rocci said combining RVIA and RVDA efforts on the issue this month is helping to rebuild momentum for the Tax Parity Act.
Even if we see a shutdown, there will still be legislating for the end of the year,” Rocci said, “and that really is the timing for a bill like this to move. So, I don’t think people should be discouraged that most of the attention is on one thing. There are so many moving pieces in the background, and staff and legislators know there are important things still needing attention.”
The best thing you can do is contact your local U.S. representative or your U.S. senator. Direct contact with people affected by a legislative problem is the surest way to build momentum that RVIA and RVDA can carry forward.
The days of “write your congressman” are a little dated, but calling their local or D.C. office or emailing your concerns are all ways in which you can elevate the issue.
I asked Rocci what her elevator pitch to staff or legislators on this issue was, to get an idea of what you could say when talking to your local representatives.
She said the industry is facing inflationary concerns and higher interest rates that are impacting RVs’ pricing. This is one small move Congress can make to take some pressure off the RV dealers. In turn, that can take pressure off RV consumers, who are looking to buy RVs and explore the great outdoors throughout the country.
This is one easy way Congress can help businesses and consumers.
Keep those bullet points in mind when you are on the phone or typing away at your computer. A little work on your end, my end and everyone else’s end can help keep this issue on the front burner and hopefully return millions of dollars to the industry.
Chris Freeman
Editor-in-Chief
