LIFO-Relief Bill to Be Reintroduced
U.S. Reps. to again pursue tax relief for auto dealers.
NADA says that due to diminished inventories, dealers using LIFO face “major unanticipated tax liability due to circumstances beyond their control.”
IMAGE: Mohamed Hassan
U.S. representatives intend to reintroduce a bill designed to provide tax relief to auto dealers that use the “last in, first out” accounting method, or LIFO.
The U.S. Senate passed the Supply Chain Disruptions Relief Act in December, but time ran out for the House to consider its version of the bill.
The National Automobile Dealers Association wrote at the time that the unanimous Senate approval positioned the proposed legislation for inclusion in a tax package this year, for instance.
NADA says that due to diminished inventories since the pandemic’s onset, dealers using LIFO face “major unanticipated tax liability due to circumstances beyond their control.”
The bill approved by the Senate last year would have given the Treasury Department authority to allow dealers using LIFO extended time to replace inventories before they must pay taxes on 2020 or 2021 inventory sales.
U.S. Reps. Jodey Arrington, R-Texas, and Dan Kildee, D-Mich., plan to introduce a bill for LIFO relief during the current House session that matches last year’s.
Originally posted on Auto Dealer Today
More Industry
Consumers Mixed on Economy, Finances
A July survey shows spotty sentiment of current and future conditions, in addition to demographic differences as overall opinion of present circumstances kept sliding.
Read More →
EVs Closing the European Gap
Electrified powertrains led June new-vehicle sales in Europe, reaching 26% of the market.
Read More →
Early Intervention Saves Retention
Sales and service departments have the highest annual dealership turnover rates, according to a new industry report, costing money and time that could be better spent elsewhere.
Read More →
Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →