The Gas Guzzler Tax is a federal excise tax imposed on the sale of new vehicles with relatively low fuel efficiency. The tax is designed to discourage the purchase of fuel-inefficient vehicles and promote the production and consumption of more fuel-efficient vehicles. The Gas Guzzler Tax was established in the United States as part of the Energy Tax Act of 1978 and is administered by the Internal Revenue Service (IRS).

Key points about the Gas Guzzler Tax include:

1. **Applicability:** The tax applies to new cars, sport utility vehicles (SUVs), and light trucks with a gross vehicle weight rating (GVWR) of 6,000 pounds or less.

2. **Fuel Efficiency Criteria:** The tax is based on a vehicle’s fuel efficiency, measured in miles per gallon (mpg). The tax is triggered when a vehicle’s fuel efficiency falls below a certain threshold.

3. **Threshold Fuel Economy:** The threshold for triggering the Gas Guzzler Tax has changed over the years. Generally, it is applied to vehicles with a combined city/highway fuel efficiency of 22.5 miles per gallon or lower.

4. **Tax Calculation:** The amount of the Gas Guzzler Tax is determined by a formula that takes into account the difference between the vehicle’s actual fuel efficiency and the applicable fuel efficiency standard. The tax rates increase as the deviation from the standard becomes larger.

5. **Manufacturer Liability:** The manufacturer of the vehicle is responsible for paying the Gas Guzzler Tax. This tax is typically incorporated into the vehicle’s price, and consumers indirectly bear the cost.

6. **Exemptions:** Certain vehicles are exempt from the Gas Guzzler Tax. For example, electric vehicles (EVs), hybrids, and certain alternative fuel vehicles are not subject to the tax.

7. **Consumer Information:** Car buyers can find information about a vehicle’s fuel efficiency and whether it is subject to the Gas Guzzler Tax on the window sticker (Monroney label) displayed on new vehicles.

The Gas Guzzler Tax serves as both a revenue-generating measure and an environmental policy tool aimed at encouraging the production and purchase of more fuel-efficient vehicles. As fuel efficiency standards and environmental awareness continue to evolve, the criteria for the Gas Guzzler Tax may be adjusted to align with changing priorities and goals.