The Heavy Vehicle Use Tax or
HVUT Tax, as it is popularly called the is
the fee
IRS wants you to pay annually
on heavy vehicles operating on public highways at registered gross weights equal
to or exceeding 55,000 pounds.
The gross taxable weight of a vehicle is determined by adding:
- The actual unloaded weight (actual tare weight) of the vehicle fully equipped for
service
- The actual unloaded weight of any trailers or semitrailers fully equipped for service
customarily used in combination with the vehicle, and
- The weight of the maximum load customarily carried on the vehicle and on any trailers
or semitrailers customarily used in combination with the vehicle
- For Buses, The taxable gross weight of a bus is its actual unloaded
weight fully equipped for service plus 150 pounds for each seat provided for passengers
and driver.
The Tax Calculations:
The tax year for
Form 2290 starts from July of any year and ends the June
of next year. If the gross taxable weight is from 55,000 to 75,000 pounds, the
HVUT is $100, plus $22 per 1,000 pounds over 55,000 pounds. For over 75,000-pound
vehicles, the maximum
HVUT is $550 per year. The taxes are lower for
logging vehicles - vehicles primarily used for exclusively
for transporting products harvested from the forest and is registered with the state
agency as such.
The table below shows the taxes for logging and regular trucks:
Taxable Gross Weight
|
Heavy Vehicle Use Tax Rate
|
Logging
Vehicle Rate
|
Below 55,000 lbs
|
No Tax
|
No Tax
|
55,000 to 75,000 lbs
|
$100 plus $22 per 1000 lbs over 55,000 lbs
|
$75 plus $16.5 per 1000 lbs over 55,000 lbs
|
Over 75,000 lbs
|
$550
|
$412.50
|
For any vehicles placed into service after July, the taxes are prorated.
There are a number of groups that receive exemptions from the HVUT, including:
- The Federal Government
- State or local governments, including the District of Columbia
- The American Red Cross
- Nonprofit volunteer fire departments, ambulance associations or rescue squads
- Indian tribal governments (for vehicles used in essential tribal government functions)
- Mass transportation authorities
There are also a number of vehicles exempted from the HVUT:
- Vehicle not considered highway motor vehicles — e.g., mobile machinery for non-transportation
functions, vehicles specifically designed for off-highway transportation, and non-transportation
trailers and semi-trailers
- Qualified blood collector vehicles used by qualified blood collector organizations
- Mobile machinery that is used for non- transportation purposes
Exempt carriers may be required to file tax forms with the
IRS or notify the local department of motor vehicles (DMV)
of the exempt status being claimed.
There are other vehicles that are exempt based on the number of miles it is
driven:
The above vehicles are called
Suspended Vehicles, but must be reported to the
IRS.
The
HVUT is a significant source of transportation funding in the U.S. In 2006
alone, the
HVUT generated more than $1.4 billion in Federal Highway Trust Fund (HTF)
revenue.
The Federal HTF protects the nation's investment in our transportation infrastructure.
In 2007 alone, Federal HTF receipts topped $39.9 billion, with $34.9 billion dedicated
to the HTF's Highway Account.
The Federal HTF finances a broad spectrum of transportation investments, including:
- Highway improvements (e.g., land acquisition and other right-of-way costs, preliminary
and construction engineering, construction and reconstruction, resurfacing and restoration
costs of roadways and bridges)
- Highway and bridge maintenance activities
- Highway law enforcement
- Safety programs (e.g., driver education and training, vehicle inspection programs,
enforcement of vehicle size and weight limits)
- Congestion relief projects
- Debt service
- Administrative costs (e.g., research, engineering)
Investment in our nation's highway infrastructure helps:
- Save lives, time and money
- Reduce the number and severity of crashes for all kinds of vehicles
- Enhance the ability of the entire community of emergency responders
- Lower fuel and insurance costs
- Increase mobility
- Ease congestion
- Decrease energy consumption
- Boost air quality
- Improve the efficient movement of goods
- Raise business productivity
- Strengthen the nation's economic productivity
Since the vast majority of all funds contributed by states to the Federal HTF are
returned through highway fund apportionments, there is a direct incentive for state
agencies to take necessary measures to enhance
HVUT compliance.
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