FEDERAL LEGISLATIVE ALERT
Help the Hobby: Support a Tax Cut On the Sale of Collector Cars
(Editor's note: The CMGC subscribes to the news service of SEMA (Specialty Equipment Market Association). SEMA is a professional organization concerned with the prosperity of the automotive aftermarket industry (its members). They work to keep the public informed of legislation that affects the interests of collector car enthusiasts. The CMGC passes this information on to you as a service only and makes no representation of its completeness, correctness or value.)
On June 24, 1998, Speaker of the House, Newt Gingrich introduced H.R. 4125, The Economic Growth Act of 1998. Among other provisions, this Bill seeks to reduce the capital gains tax rate from 28% to 15% for collectibles, including collector automobiles, held for at least one year before sale.
In 1997, the Taxpayer Relief Act cut the capital gains tax rate on the sale of investments from 28% to 20%. However, proceeds from the sale of collectibles were specifically excluded from this law and continue to be taxed at 28%. The Economic Growth Act of 1998 seeks to treat and tax all investments the same whether they are stocks and bonds or valuable collector cars.
This effort will be an uphill fight, but we need to let Congress know that this potential change in law could have far-reaching positive effects on the economy and the automobile hobby. Write, call, or fax your Representative and Senators in support of H.R. 4125 and its companion Bill in the Senate, S. 2214, using the following points.
H.R.4125 / S.2214 would:
- Reduce the capital gains tax from 28% to 15% on collector cars purchased after June 24, 1998 and held for at least one year before sale.
- Allow automobile enthusiasts the benefit of treating collector cars as an investment on par with more traditional investments.
- Spur further economic growth by adding to the multi-billion dollar collector vehicle industry.
For assistance in finding out who your Representative and Senators are and how to reach them, visit SEMA's website at www.sema.org/fedleg/legislatorrequest/. SEMA may also be contacted via Fax-on-Demand at (909)396-0281. Dial 750 and follow the voice prompts and request document number 1119.
For more information, please contact Brian Caudill at the SEMA Washington, DC office at (202) 783-6007. Feel free to distribute, publish and copy this alert as necessary.
P.O. Box 4910
Diamond Bar, CA 91765-0910
1317 F Street N.W. Ste. 500
Washington, D.C. 20004