WILLIAM RICHARDSON

(H.R. 621/S. 154) Preventing Auto Recycling Theft, or PART, Act - aims to reduce catalytic converter thefts by requiring new vehicles to have the VIN stamped onto the converter, allowing law enforcement officers to link stolen parts to the originating vehicles. It also would create a grant program to allow dealerships, repair shops and other eligible parties to stamp VINs onto converters of existing vehicles, and it would establish federal criminal penalties for theft, sale, trafficking or known purchases of stolen catalytic converters.

RVDA supports H.R. 3624 & S. 3345- the Travel Trailer and Camper Tax Parity Act. Current disparity: Under the current law, the tax exemption for interest paid on dealer inventory applies only to RV motorhomes, leaving RV travel trailers at a disadvantage. While motorhome interest remains fully deductible, travel trailers are now limited to a 30 percent deduction for dealers with $25 million in annual sales. This exclusion affects approximately 85% of RVs sold, which are non-motorized travel trailers, creating an unfair and complicated accounting situation for RV dealers. Impact on dealers: According the U.S. Census Bureau, an estimated 550 U.S. RV dealers with more than 25,000 employees are impacted by this disparity. In 2023, its estimated that these dealers will pay an additional $100 million in taxes due to the inventory interest deduction limitation. This puts these dealers at a competitive disadvantage compared to other recreation equipment dealers, such as powersports and marine dealers, who can fully deduct interest on their inventory floor plans. Impact on consumers: Retail RV prices have increased by 15% to 30% or more depending on the type of unit since 2020. While not all the increase can be attributed to higher taxes paid by impacted dealers, a higher, disparate tax burden on these businesses contributes to the inflation and the increase in RV prices as indicated in the Feds RV Dealer Producer Price Index. Bipartisan support: There is bipartisan support in both the House and Senate for legislation to address this issue. Representatives Rudy Yakym and Dina Titus, Co-Chairs of the House RV Caucus, have introduced H.R. 3624 to ensure that towable RVs are included in the floor plan interest financing deductibility provisions. Last Congress, Senator Joni Ernst and Senator Angus King introduced a companion measure, and we expect reintroduction of the legislation in the Senate in the coming weeks. Equity in financing: RV trailers are considered motor vehicles under state and federal motor vehicle laws. They are designed to provide temporary living quarters for short-term camping and comply with applicable Federal Motor Vehicle Safety Standards for motor vehicle regulations. Therefore, it is essential to create equity in the financing of RV inventory by including RV trailers in the deductibility provisions. Initial Intent of legislation: Both House and Senate tax legislation in 2017 intended to include RV trailers as motor vehicles in the floor plan interest exclusion. The consolidation of language aimed to simplify the provision but unintentionally excluded RV trailers due to confusion about the different types of RVs. Reinstating the original intent will rectify this unintended consequence. Requested Action: Support the Travel Trailer and Camper Tax Parity Act (HR 3624), legislation that ensures towable RVs are included in the floor plan interest financing deductibility provisions under IRS Code 163(j). By correcting this discrepancy, we can promote fairness, strengthen the competitiveness of RV trailer dealers, and support the growth of the RV industry.

RVDA supports H.R. 3624 - the Travel Trailer and Camper Tax Parity Act. U.S. Senators Joni Ernst (R-IA) and Angus King (I-ME) have introduced a companion bill, S.3345 Current disparity: Under the current law, the tax exemption for interest paid on dealer inventory applies only to RV motorhomes, leaving RV travel trailers at a disadvantage. While motorhome interest remains fully deductible, travel trailers are now limited to a 30 percent deduction for dealers with $25 million in annual sales. This exclusion affects approximately 85% of RVs sold, which are non-motorized travel trailers, creating an unfair and complicated accounting situation for RV dealers. Impact on dealers: According the U.S. Census Bureau, an estimated 550 U.S. RV dealers with more than 25,000 employees are impacted by this disparity. In 2023, its estimated that these dealers will pay an additional $100 million in taxes due to the inventory interest deduction limitation. This puts these dealers at a competitive disadvantage compared to other recreation equipment dealers, such as powersports and marine dealers, who can fully deduct interest on their inventory floor plans. Impact on consumers: Retail RV prices have increased by 15% to 30% or more depending on the type of unit since 2020. While not all the increase can be attributed to higher taxes paid by impacted dealers, a higher, disparate tax burden on these businesses contributes to the inflation and the increase in RV prices as indicated in the Feds RV Dealer Producer Price Index. Bipartisan support: There is bipartisan support in both the House and Senate for legislation to address this issue. Representatives Rudy Yakym and Dina Titus, Co-Chairs of the House RV Caucus, have introduced H.R. 3624 to ensure that towable RVs are included in the floor plan interest financing deductibility provisions. Last Congress, Senator Joni Ernst and Senator Angus King introduced a companion measure, and we expect reintroduction of the legislation in the Senate in the coming weeks. Equity in financing: RV trailers are considered motor vehicles under state and federal motor vehicle laws. They are designed to provide temporary living quarters for short-term camping and comply with applicable Federal Motor Vehicle Safety Standards for motor vehicle regulations. Therefore, it is essential to create equity in the financing of RV inventory by including RV trailers in the deductibility provisions. Initial Intent of legislation: Both House and Senate tax legislation in 2017 intended to include RV trailers as motor vehicles in the floor plan interest exclusion. The consolidation of language aimed to simplify the provision but unintentionally excluded RV trailers due to confusion about the different types of RVs. Reinstating the original intent will rectify this unintended consequence. Requested Action: Support the Travel Trailer and Camper Tax Parity Act (HR 3624), legislation that ensures towable RVs are included in the floor plan interest financing deductibility provisions under IRS Code 163(j). By correcting this discrepancy, we can promote fairness, strengthen the competitiveness of RV trailer dealers, and support the growth of the RV industry.

The EXPLORE Act The EXPLORE Act is bipartisan legislation that will help ensure that Americans continue to enjoy the benefits of recreating outdoors for generations to come. The act will improve and modernize recreation infrastructure on public lands to support everyone who enjoys the great outdoors, including the growing number of RV travelers. Bill sponsors Congressman Bruce Westerman (R-AR) and Raul Grijalva (D-AZ), this legislation will provide federal agencies with new tools they need to address recreation management and help more Americans reap the benefits of time spent outside, all while protecting the precious public lands and waters that make it all possible.

RECREATION VEHICLE DEALERS ASSOCIATION OF NORTH AMERICA

RECREATION VEHICLE DEALERS ASSOCIATION OF NORTH AMERICA

RECREATION VEHICLE DEALERS ASSOCIATION OF NORTH AMERICA