What is FET? (Federal Excise tax?) FET is something that many fleet managers are very familiar with yet owner operators making new equipment purchases may not be. It can add a significant amount to the purchase of fleet equipment and should be addressed when determining your budget. The most important and obvious question is "What is FET?" and that questions is easily answered. FET is a federal tax levied by our government to help pay for the additional wear and tear on the interstate road systems created by use of heavy trucks, tractors and trailers on our highways. While it may seem unfair it is important to remember how much we use these roads as transporters and that (at least in theory) this money goes into keeping the roads in good repair and available for the work we need to do. Primarily it applies only to vehicles with a GVWR over 33,000 lbs. This encompasses mainly tandem rear axles in both Petroleum, Septic and other liquid haulers. For the most part 2800 gallon fuel oil or vacuum trucks are exempt but if you're hauling more than that, FET may apply. If your truck is hauling more than 3200 gallons you can almost be certain that FET will apply. How much does FET cost? The formula is different for different types of vehicles. Overall it is a 12% tax levied to the government on the purchase price of the vehicle.It gets slightly more complicated however as with Petroleum vehicles the FET is levied to the whole vehicle and all components attached except for tires which have their own FET applied separately. On Vacuum Trucks there are many components which are not taxed by FET consisting primarily of the systems for loading and unloading the vehicle and details which support the loading and unloading of product such as the tool boxes, pumps and traps. Our formula suggests that if you multiply the overall vehicle cost by about .083 and estimate that as your FET you'll be close enough for budget planning purposes.* Please note that FET is normally NOT included in the pricing of vehicle on our website or most others but is a part of the price of the vehicle and must be included when arranging payment or financing. Another important Tax detail to keep in mind is that as capital expenditures a truck certainly qualifies for an amortized tax write-off. For details talk to us and consult with your accountant or tax professional. *Please be aware that "close enough" is a judgement call for an estimated amount. For specific amounts of FET as applicable to various tank trucks please contact an Allied Sales associate for more information.