CAR Act

Key Points

• Rep. Perry introduced a bill called the CAR Act that would change how the government taxes the sale of classic or collector cars. Currently, these cars are taxed as "collectibles," which often carries a higher tax rate than other investments like stocks.
• If this bill becomes law, cars would no longer be in the same tax category as things like rare coins or art. This means people who sell a car for more than they paid for it would likely pay a lower capital gains tax rate on their profit.
• This change would apply to car sales starting in 2026. It is designed to help car enthusiasts and collectors keep more of their money when they sell a vehicle that has gone up in value over the years.
• Currently, the top tax rate for "collectibles" is 28%. By removing cars from this list, the bill would allow car owners to benefit from the lower tax rates usually reserved for long-term investments, which are often 15% or 20%.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Votes

No votes have been recorded for this legislation yet.

News

No related news coverage found for this legislation yet.

Related Bills

No related bills have been identified yet.