YOU’VE SEEN THE ADS ON TV — MANUFACTURER COMMITMENTS PLEDGING TO BECOME ALLELECTRIC, AND RECENTLY, GAS PRICES FUEL THIS DISCUSSION. WHILE, YES, DEALERS ARE ALL-IN ON THIS MOVEMENT, THE BUY-IN ON A STATE-TOSTATE LEVEL VARIES. FOR NEW HAMPSHIRE IN PARTICULAR, OUR NARRATIVE REMAINS THE SAME — IF YOU BUILD THEM, WE’LL SELL THEM. dealers because of unprecedented inventory declines caused by a “major foreign trade interruption” related to the pandemic. New Hampshire Senator Maggie Hassan has been very supportive of NADA and NHADA’s efforts to secure LIFO Relief and signed onto the abovereferenced letter. In addition, both Reps. Annie Kuster and Chris Pappas signed the House letter. Congress should urge Treasury to grant temporary LIFO relief for businesses facing difficulty replacing inventories due to pandemic-related global disruptions, including foreign semiconductors, that have resulted in reduced auto production. Recently, H.R. 7382 and S. 4105, two new pieces of legislation, have been filed to address the supply chain disruption. While the Treasury Department remains quiet, NADA continues to keep up the fight. Repeal the Federal Excise Tax Congress imposes a 12% federal excise tax (FET) on the retail sale of most new heavy-duty trucks. This tax depresses heavy-duty truck sales and delays the purchase of cleaner, safer, and more fuel-efficient trucks. Truck manufacturing and assembly employment are significant in the U.S, and the FET negatively impacts American truck industry jobs. Congress should repeal the FET to help protect U.S. jobs, replace older trucks with newer and greener trucks, and promote the adoption of advanced technology trucks. In July of 2021, Rep. Chris Pappas (D-N.H.) sent a letter to the Democratic leaders of the U.S. House of Representatives calling for a repeal of the 12% federal excise tax on new heavy-duty trucks and trailers. Rep. Pappas’ letter, signed by 30 House Democrats (including New Hampshire Rep. Annie Kuster), was sent to Speaker Nancy Pelosi and House Democratic leaders, urging them to include FET repeal in upcoming infrastructure legislation and replace the tax with an equitable funding mechanism for the Highway Trust Fund (HTF). In his letter, Rep. Pappas highlights that repeal of the FET will help America’s truck fleets replace older heavy-duty trucks with newer, safer, and greener trucks and ensure a more consistent revenue source for the HTF. “New heavy-duty trucks today have the latest emission control and safety technologies and are cleaner, safer and more fuel-efficient. With more than half of the Class 8 trucks on the road over 10 years old, repealing the FET would benefit the environment and improve highway safety by accelerating fleet turnover,” the letter stated. “We thank Rep. Pappas for his work to repeal the outdated FET in the New Hampshire tradition of environmental protection and commonsense tax policies,” said Peter McNamara, president of the New Hampshire Automobile Dealers Association, which also represents heavy-duty truck dealers in the state. “Repealing and replacing the FET will speed up the adoption of newer, cleaner and safer trucks on the road by making them more affordable, support New Hampshire jobs related to truck retailing and reduce the tax burden placed on many small businesses.” Please refer to nada.org/ ATD-Applauds-Letter-Urging-FET-Repeal. FTC Safeguard Rules By now, all dealers are familiar with the requirements of the Federal Trade Commission (FTC) “Standards for Safeguarding Information” (Safeguards Rule). The rule was first issued in 2002 and took effect on May 23, 2003. It requires dealers to develop, implement and maintain a comprehensive written information security program. NADA believes the FTC is a major compliance concern for dealers, and it is imperative that you use the NADA Safeguard Process to protect yourself. If you don’t, you may find yourself in hot water like Napleton Auto, a multistate dealer now facing a 10-million-dollar lawsuit on both a corporate and personal level. On Dec. 9, 2021, after several years of notice, hearings and debate, the FTC officially published revisions to its Safeguards Rule, expanding many of the requirements applicable to dealerships. Continued from page 11 D R I V E 12
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