BILL SEEKS 3-YEAR VEHICLE CLASS LIFE & NEW DEPRECIATION CAP

Senator Donald Riegle (D-MI) has introduced S.347, a U.S. Senate bill which seeks to change the five-year recovery period for light-duty business vehicles to three years for depreciation purposes. The vehicle leasing industry has been lobbying for such a bill since the U.S. Treasury Department recommended a change such as this one in its 1991 vehicle depreciation study. Current tax law assigns cars and light trucks to a five-year recovery period - the period over which depreciation deductions are taken.

In addition, the bill would increase the depreciation cap for cars and light trucks to $17,100 from the current $12,060. Cars and light trucks are the only business assets that have a depreciation cap.

HOUSE BILL SEEKS TO REPEAL LUXURY TAX

Representative Billy Tauzin (D-LA) has introduced H.R. 418, a U.S. House of Representatives bill which seeks to repeal the federal excise tax on all affected luxury items including automobiles. The bill is currently being reviewed by the House Way and Means Committee.

SALVAGE FRAUD LEGISLATION INTROUDUCED IN U.S. CONGRESS

A bill entitled, "The Vehicle Damage Disclosure Act of 1993," was introduced on Feb. 23, 1993 in the U.S. House of Representatives by Congressmen Bob Clement (D-TN), Jim Cooper (D-TN), and Bart Gordon (D-TN). The bill, which has been referred to the House Energy and Commerce Committee, would require states to disclose a vehicle's new title if it was previously issued a title stamped "salvage," "junk," "reconstructed," of "rebuilt," or whether it was damaged by flood.

In addition, the legislation would require the U.S. Department of Transportation, in consultation with a federal task force previously established by the Anti-Car Theft Act of 1992, to issue a rule which provides nationally-uniform title procedures.

The bill has been endorsed by the National Auto Auction Association and Anglo American Auto Auctions. A similar bill has been introduced into the U.S. Senate by Sen. Jim Exon (D-NB), chair of the Senate Surface Transportation Subcommittee.

"60 MINUTES" DOES EXPOSE' ON SALVAGE FRAUD

In a Feb. 21, 1993 broadcast, the new show "60 Minutes" reported that salvage fraud annually involves an estimated one million totaled vehicles resold as used-cars, most of which it alleged were unsafe to drive. Interviewed for the segment was Gary Dickinson, director of security for Anglo American Auto Auctions, who advocated the establishment of a permanent salvage brand for vehicle titles.

GAS TAX ETIMATES RANGE FROM 7.5 TO 15 CENTS A GALLON

According to U.S. Treasury calculations, President Clinton's proposed energy tax, if approved by Congress, will raise gasoline prices 7.5 cents a gallon within three years. The American Petroleum Institute, on the other hand, states that the tax will raise the cost of gas by 10 to 15 cents a gallon within three years.

NHTSA PROPOSES MANDATORY DUAL AIRBAGS BY 1999

The National Highway Traffic Safety Administration (NHTSA) has proposed that all cars and light trucks be required to have both driver-and passenger-side airbags by the 1999-model year. The phase-in would mandate that 95 percent of an automaker's cars built after Sept. 1, 1997 would be required to have dual airbags and 100 percent by the 1998-model year. Eighty percent of light trucks built after September 1, 1997 would be required to have at least driver-side airbags, and all light trucks after Sept. 1, 1998, would have both driver-and passenger-side airbags.

CLINTON DIRECTS CABINET TO CUT FLEET SIZE

President Clinton has issued a directive to his cabinet members to reduce the number of fleet vehicles used by cabinet staff members. The President's directive may reduce the current fleet of 300 vehicles used by senior administration staff members to approximately 150 vehicles.

GSA STUDYING CHANGE IN VEHICLE RECONDITIONING POLICY

The General Services Administration (GSA) is conducting a study to determine the feasibility of changing the GSA's current vehicle reconditioning guidelines. Changes may be made in the GSA's policy for each region in the country, based on what is best for each regional organization.

Currently, the GSA fleet management's policy s to offer "fully functioning and operating equipment" for resale. When necessary, the GSA makes repairs to its passenger cars to maintain a professional appearance and safe operation.