Ever Heard of the Heavy Road Use Tax? 2290 Tax? Heavy Vehicle Usage tax? Required form 2290 from IRP?
The heavy vehicle use tax or HVUT is a fee assessed 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 of the vehicle fully equipped for service.Nov 7, 2014
According to truckdues.com, “These are the conditions to consider before claiming a credit:
- A credit, lower tax, exemption or refund is not allowed for decreased load or discontinued or changed use of the vehicle.
- Any excess credit must be claimed as a refund through form 8849 using Schedule 6.
If the vehicle is used 5,000 miles or less (7,500 miles or less for agricultural vehicles) during the period, a credit for tax paid can be claimed
Now according to everything we were able to locate; these taxes are collected by federal government, and then-according to the website yourtrucktax.com, The federal government collects an excise tax known as the Heavy Vehicle Use Tax (HVUT) from owners of vehicles with a gross weight of 55,000 lbs. and more that use public highways. The money from the tax is then distributed to the states to support highway maintenance and construction projects.
In the Surface Transportation Assistance Act of 1982, Congress established the HVUT. The purpose of the tax is to impose a road use charge that has some relation to the costs caused by the vehicle (heavier vehicles cause more road damage than light vehicles, and therefore should pay a higher highway funding contribution). The FHWA Cost Allocation studies  demonstrated that damage to the roadway, resulting from a doubling of the weight of a vehicle, caused an exponential increase in the amount of damage to the roadway than would have been caused by a lower weight. To compensate for this additional damage (costs occasioned), Congress established the HVUT as a way to recover from those vehicles the additional costs they impose. The HVUT imposes a tax on vehicles with a gross vehicle weight of 55,000 pounds and over using a sliding scale up to $550 per year payable to the Internal Revenue Service (IRS). When the HVUT has been paid, the vehicle is eligible to be registered by the State. Provisions allow for temporary and partial-year vehicle registrations.
The FHWA’s responsibility in the administration of the HVUT is to ensure that the States are obtaining proof-of-payment of the HVUT before registering these vehicles to operate on the roadways. The agency published regulations at 23 CFR Part 669 implementing the requirements of this program as established by Federal law at 23 U.S.C. 141(c). In accordance with this Federal law, a State’s annual apportionment of Interstate Maintenance funds under 23 U.S.C. 104(b)(4) may be reduced by up to 25 percent in any fiscal year during which heavy vehicles subject to HVUT may be lawfully registered in the State without having presented proof-of-payment of the tax. Part 669 established a certification program to ascertain State compliance with these requirements, Start Printed Page 43406procedures for evaluating State compliance, and procedures for any required reduction of funds. This rule modifies existing FHWA procedures for enforcement of the State registration of vehicles subject to the HVUT. The regulation is consistent with several changes in applicable law and technology, and with regulations recently promulgated by the IRS.
The HVUT tax was imposed by section 143 of the Surface Transportation Assistance Act of 1982, Public Law 97-424, and is codified as 23 U.S.C. 141, which provides for State certification of enforcement of laws respecting maximum vehicle size and weight. The amendment added a provision to section 141 that provides that a State’s annual apportionment of Interstate Maintenance funds may be reduced by up to 25 percent in any fiscal year during which heavy vehicles subject to the HVUT may be lawfully registered in the State without having presented proof-of-payment of the tax.
On July 14, 1986, the FHWA published in the Federal Register (51 FR 25363) a final rule implementing the requirements of this statute in 23 CFR Part 669—Enforcement of Heavy Vehicle Use Tax. The notice set forth procedures to be followed by each State for certifying that it is obtaining evidence of proof-of-payment of the Federal heavy vehicle use tax in accordance with 23 U.S.C. 141 for vehicles subject to the use tax imposed by section 4481 of the Internal Revenue Code of 1954, as amended, before such vehicles are lawfully registered in the State. An annual certification of compliance is required. Procedures are specified for reducing a State’s apportionment of highway funds in accordance with 23 U.S.C. 141 in the event a State fails to meet the requirements of the regulation.
Over the decades since 1986, the IRS has updated its procedures for implementing the HVUT proof-of-payment. The current regulations, found in 26 CFR 41.6001-2, , entitled proof-of-payment for State registration purposes, sets forth circumstances under which a State must require proof-of payment of the tax imposed by 26 U.S.C. 4481(a), and the required manner in which such proof-of-payment is to be received by the State as a condition of issuing a registration for a highway motor vehicle. A State must either comply with the provision of this section, or comply with other, alternative rules regarding the satisfaction of proof-of-payment requirement as may be prescribed by the Internal Revenue Service (IRS) Commissioner in order to avoid a reduction of Federal-aid highway funds apportioned under 23 U.S.C. 23 104(b)(4). This FHWA final rule provides compatibility with the revised IRS rules.
HVUT being a federal excise tax goes into the Federal Highway Trust Fund and is returned to the States for various highway programs in accordance with legislation. Each state is guaranteed that at least 90.5 percent of its contributions to the HTF will be properly appropriated back to the State. HVUT revenue used by the State & HTF finances a broad spectrum of transportation programs, which include: highway infrastructure, highway improvements, highway & bridge maintenance, highway law enforcement, safety programs, congestion relief projects, administrative cost and local highway/congestion/safety –related programs.