Pub. 16 2017-2018 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 3 , 2 0 1 7 8 new jersey auto retailer NADA Director’s MESSAGE | BY RICHARD A. DESILVA Congress To Consider Several Bills That Would Impact All Dealers Washington, D.C. is often ground zero for the retail automotive industry, particularly when new legislation or com- pliance requirements are introduced (or passed) that hold lasting repercussions for the industry. For the past few months, Congress has been working on a variety of legislative and regulatory proposals that will impact virtually every facet of our industry including business tax regulations, auto recalls, motor vehicle cybersecurity and much more. We are not simply businessmen and women selling cars to customers. We have a larger responsibility to educate our elected officials. Before New Jersey dealers feel the effects of new legislation, we should be well-versed on issues that impact the industry and work hard to influence the decision-making on Capitol Hill. Self-Driving vehicle legislation is one issue that will have a pro- found impact on the industry if it is not handled correctly. Congress is considering legislation to advance self-driving vehicles and this overly-broad legislation could preempt certain state franchise laws. All states, including New Jersey, have enacted vehicle franchise and licensing laws to provide consumer protections and regulate vehicle commerce. While Congress seeks uniform regulation of self-driving states’ vehicles to avoid a patchwork regulatory maze, Congress must also ensure that the states’ traditional role to regulate motor vehicle commerce within each of their OWN borders is preserved. Just a fewweeks ago, the House Energy and Commerce Committee approved H.R. 3388, the “SELF DRIVE Act.” A Senate version of this legislation is expected to be introduced soon. NADA has been working hard to make sure that this legislation preserves state dealer franchise laws. We have been educating Washington officials on the importance of state franchise laws that both protect consumers and help level the playing field between small business automotive retailers and large, multi-national auto manufacturers. Another piece of legislation that would impact the industry is centered on the Federal Excise Tax ( FET ), a tax that routinely adds $12,000- $22,000 to the price of a new heavy-duty truck. Earlier this summer, truck dealers urged their members of Congress to cosponsor H.R. 2946, theHeavyTruck, Tractor, andTrailer Retail Federal ExciseTax Repeal Act of 2017, which would effectively repeal the FET on most heavy-duty trucks, and help spur the production and sale of cleaner and safer trucks. NADA’s goal is to have the FET repeal included in the upcoming tax reform bill. The support and advocacy of truck dealers across New Jersey is necessary to make this effort a success.