Walorski, Titus Introduce Bipartisan RV Floor Plan Tax Fix
Travel Trailer and Camper Tax Parity Act Would Restore Inventory Interest Deductibility for All Types of RVs
MISHAWAKA, Ind. – U.S. Reps. Jackie Walorski (R-Ind.) and Dina Titus (D-Nev.) today introduced the bipartisan Travel Trailer and Camper Tax Parity Act to fix a provision in the tax code so all types of RVs, including travel trailers and campers, are treated equally.
“From manufacturers and suppliers to distributors and dealers, the RV industry supports tens of thousands of jobs in northern Indiana and across the country,” Congresswoman Walorski said. “These made-in-America products will play a vital role in our economic recovery, but one provision in the tax code is putting certain RVs at a disadvantage. This commonsense bill would fix that by restoring tax parity so all types of RVs – including travel trailers and campers – are treated equally.”
“The RV industry generates over $1 billion for Nevadans each year,” Congresswoman Titus said. “Travelers who use both towed and motorized RVs create jobs in our state and there is no reason these vehicles should be taxed differently. This bipartisan bill would help boost regional tourism in Nevada and across the country.”
“We’re pleased Congress is acting to fix the quirk in current law that treats the towable trailer segment and motorized segment of the RV differently,” said RV Industry Association Senior Manager of Government Affairs Samantha Rocci. “We want to thank Representatives Walorski and Titus for introducing the Travel Trailer and Camper Tax Parity Act. The legislation will ensure RV trailer dealers are able to remain competitive with other types of recreation products that are currently able to fully deduct interest paid on their inventory and help the RV industry continue its all-American success story.”
The Travel Trailer and Camper Tax Parity Act (H.R. 3552) would restore the full deductibility of inventory financing interest for all types of RVs, including motorhomes, travel trailers, and campers, as originally intended by Congress.
Under the 2017 tax reform law, a deduction for interest paid on RV dealer inventory inadvertently excluded non-motorized travel trailers. The House and Senate versions of the legislation specifically intended to include towable RVs as motor vehicles, but the final version of the Tax Cuts and Jobs Act (TCJA) simplified the definition of motor vehicles. As a result, the full tax exemption now only applies to RV motorhomes, putting the RV travel trailer industry at a disadvantage and forcing larger dealers to use different accounting rules for trailers and motorhomes. According to the RV Industry Association (RVIA), approximately 88 percent of RVs sold are travel trailers.
Read the full text of the legislation here.
Walorski represents the 2nd Congressional District of Indiana, serving as a member of the House Ways and Means Committee and the Ranking Member of the House Ethics Committee.