Industry Urged to Support Travel Trailer & Camper Tax Parity Act – RVBusiness – Breaking RV Industry News
Members of the RV Dealers Association and other industry professionals re-issued a call to action for people around the country to get behind passage of legislation that would restore the floor plan interest on travel trailers and campers to the list of fully deductible items on a business’ ledger.
During passage of a tax bill in 2017, such interest was inadvertently omitted from the final version for dealers with more than $29 million in annual sales.
Nathan Hart of Walnut Ridge Family RV Sales urged dealers to take the lead and be as vocal as they can be because this time around, there will be no support from automotive, power sports or marine, as their products were not affected by the bill.
“What this bill does is restore full deductibility on floorplan interest on towables,” he said. “It’s election season and if you’re like me you’re getting some calls asking for support from incumbents and challengers; it’s a good opportunity to educate them on the situation we find ourselves in.”
Given that the amount of RVs sold overwhelmingly leans toward towables, this tax mistake affects about 85% of all RVs sold.
Both RVDA and the RV Industry Association (RVIA) have been trying to get the situation rectified since 2017. The latest versions are House Resolution 3624 and Senate Bill 3345.
The House passed a tax bill earlier this year and it was hoped it would quickly make it through the Senate. But it hit an impasse in the Senate and is pretty much dead for this session since the April 15 tax deadline has passed.
“It’s a fairness issue,” said RVDA President Phil Ingrassia. “Motorhomes aren’t under this. Cars, boats, farm equipment, all other big-ticket items are fully deductible interest on a floor plan. We want to get this drafting error fixed and that’s what the bill will do.”
Jason Rano of RVIA’s government affairs department said hearing from local businesses is what moves the needle when it comes to getting things done in Washington, D.C.
“We’re the only ones working on this,” he said. “It’s just dealers and RVIA, so that means this bill isn’t going to pass on its own. It’s got to be part of something larger.”
Rano said gaining additional co-sponsors for the Tax Parity Bill is vital to show that the issue is important enough to be included in a tax package.
The vast majority of the 2017 legislation sunsets in 2025 and there will be a large push to renew portions of that act.
Having more co-sponsors will make it more likely that reforming the deductible interest portion will be part of any tax measure.
Rano said the act will be a major part of RVIA’s upcoming advocacy week.
Brett Richardson of RVDA urged dealers to take advantage of information on RVDA’s website to help them approach their representatives. Draft letters can help dealers get started in reaching out.
He, too, urged dealers to understand that it is a niche issue that only applies to the RV industry, so it is up to them to advocate for the change or else nobody else will.
“This is going to be Job 1 for RVDA,” Ingrassia said. “This is one of our top legislative priorities and we’re going to be working hard and we’ll need your help.”
