FEDERAL EXCISE TAX ON OZONE DEPLETION CHEMICALS

This is to advise you on the impact of the recently imposed Federal Excise Tax on ozone depletion chemicals relative to who is responsible for paying the tax.

Effective January 1, 1990 manufacturers of CFC-12 (Freon is the most common in dealerships) are required to pay the excise tax. Price recovery in the form of a price increase has already been applied by our source suppliers. Conversely, GMSPO has notified dealers of a price increase in the MSRP. Because the tax is being recovered in the form of a price increase from the manufacturer, dealers will not be required to collect from customers nor be responsible for payment of excise tax. Dealers will be entitled to receive the full 30% handling allowance for warranty repairs.

If you have any further questions, please contact your Cadillac zone office.

General Motors bulletins are intended for use by professional technicians, not a "do-it-yourselfer". They are written to inform those technicians of conditions that may occur on some vehicles, or to provide information that could assist in the proper service of a vehicle. Properly trained technicians have the equipment, tools, safety instructions and know-how to do a job properly and safely. If a condition is described, do not assume that the bulletin applies to your vehicle, or that your vehicle will have that condition. See a General Motors dealer servicing your brand of General Motors vehicle for information on whether your vehicle may benefit from the information.