Gas Guzzler Tax Law and Legal Definition

Gas guzzler tax is an additional tax imposed on the sale of vehicles that have poor fuel economy. The U.S government introduced the gas guzzler tax as a part of the Energy Tax Act to discourage the production and purchase of fuel inefficient vehicles. The gas guzzler tax applies only to vehicles classified as cars. Light trucks, which include all sport utility vehicles, pickup trucks and vans, are not subject to the tax. This tax is paid by the manufacturer or importer after production has ended for the model year. [26 CFR 48.4064-1]

The amount of the tax paid by the manufacturer is displayed on the vehicle's fuel economy label on the window sticker of new cars.