Before fretting over the check you might have to write Uncle Sam in the coming days consider the hefty tax payout the auto industry makes each year – about $135 billion annually, according to a new study by the Center for Automotive Research.
In fact, the industry generates about 13% of all state tax revenues, according to the CAR study which was commissioned by the trade group the Alliance of Automobile Manufacturers, or AAM.
If anything, “As economic conditions continue to improve, auto companies could see an increase in sales and employment that would generate additional state and federal tax revenues,” said Kim Hill, director of the Sustainability and Economic Development Strategies group at CAR and the study’s lead researcher.
About $43 billion of those taxes go to the U.S. Treasury — $14 billion in the form of income taxes and another $29 billion from federal motor fuel taxes.
The study found that $91.5 billion went into various state coffers, equaling about 13% of what the 50 states take in from taxes. Of that, $30 billion comes from taxes and fees on the sale and service of automobiles – half of that from new vehicle sales. The rest, more than $60 billion, is generated from state fuel taxes, licensing and registration fees, according to CAR.