IRS PROPOSAL UPDATE

The IRS public hearing to hear comments regarding their proposal to change the definition of mobile machinery was held last Thursday, February 27th, 2003. Immediately preceding the hearing, John Parcell, Acting Deputy Tax Legislative Counsel from the Treasury Department, announced that Treasury was instructing the IRS to make no final decisions on the mobile machinery rule until after Congress had the opportunity to consider the subject, and that Treasury welcomed the assistance of Congress in working on defining highway vehicles for excise tax purposes. Needless to say, this interim is a very important victory for our industry and can certainly be directly attributed to actions from our members.

At the public hearing last week, thirty persons were granted requests to speak including four persons who spoke on behalf of the concrete pumping industry: George Pavin - President of the Milwaukee Mack Dealership, Tom Anderson, President of the Concrete Pump Manufacturer’s Association, Norm Wilson – Wilson, Downing and Associates, and Mike Cusack - President of the ACPA. Also attending were ACPA members Dennis Andrews, Ed and Ginny Bauersfeld, and Tom Teuble. Each speaker did an excellent job of presenting their arguments and outlining the affects this change would have on our industry - from the manufacturers of the trucks and pumps, all the way down to small concrete pumping companies. Hearing these arguments were three representatives from the IRS, as well as an attorney from the Treasury Department.

In the coming months, the ACPA will continue to monitor the events of Congress and prepare to continue our cause to have concrete pumps defined as “mobile machinery” and exempt from federal excise taxes. Until then – we can all breathe a small sigh of relief and roll up our sleeves for the next round.

If you have any questions, please give myself, Tom Anderson at Schwing, or Mike Cusack at Conco Pumping and Belting a call.
Regards,

Christi Collins
Executive Director