Washington, D.C– U.S. Senator Roger Marshall, M.D. (R-KS) joined Senators Tim Scott (R-SC), Sherrod Brown (D-OH) Catherine Cortez Masto (D-NV), Cynthia Lummis (R-WY), and Patty Murray (D-WA) to introduce the Supply Chain Disruptions Relief Act, bipartisan legislation to provide tax relief to auto dealers experiencing inventory shortages due to global supply chain issues.
“The COVID pandemic and supply chain failures of this Administration have left many Kansas auto dealers unable to put cars on their lots. For many, the resulting tax bill will be crippling and may result in bankruptcy or reduction of employment,” said Senator Marshall. “Through no fault of their own, businesses, their employees, and the communities they serve are going to suffer unless we take action. The Supply Chain Disruption Relief Act would give auto dealers temporary relief on their tax burden as we work through the ongoing supply chain crisis.”
Background:
Auto dealerships often use the Last-In First-Out (LIFO) inventory method, which can result in a large tax bill for dealerships that don’t maintain a minimum level of inventory at the close of the year. The Supply Chain Disruptions Relief Act would provide a statutory determination that the requirements for a qualified liquidation under Section 473 have been satisfied for new motor vehicle dealers that have had a reduction of new vehicles held in LIFO inventory.
You may click HERE to read the bill.
