2290 Heavy Highway Use Tax Services

Vehicle title transfer is the process through which the title of the usage of a vehicle is transferred from someone to another. This is usually the case when selling your car or truck to someone If you own, drive, or manage an industrial vehicle in the United States of America, then you will need to pay commercial vehicle taxes. While these taxes are condemned by many people for their sheer presence, there is a good reason behind why these taxes were presented in the first place. There are two basic varieties of commercial vehicle taxes – highway use tax and heavy highway use tax. These taxes will need to be filed using IRS form 2290, and thus are federal taxes. Before we explain about these taxes, let us see what IRS means by a “commercial vehicle.”.

According to the IRS, any auto that has a gross weight of 55,000 lbs or more is considered a commercial vehicle, and if it journeys a minimum of 5000 miles per year on public highways, it is asked to pay the commercial vehicle taxes in the form of highway use tax and heavy highway use tax. The Internal Revenue Service (IRS) gathers these taxes and distributes it back between the states to maintain and develop highways and other roads.

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The highway use tax is checked on an annual basis by the IRS on commercial vehicles (as defined above) that travel 5000 miles or more on public highways in a year. The latest highway-use taxes are fixed at $ 100 plus an additional $ 1000 per 1000 pounds over 55,000 lbs, and at $ 550 for vehicles that have a gross weight of over 75,000 lbs. This tax is levied as commercial vehicles are heavy and can cause substantial wear to public roads when traveled for the designated distance yearly. Not just that, these vehicles can cause more harm than other if involved in accidents with regular vehicles – both to the highway itself and other vehicles. These taxes are used to build new highways and roads, and maintain these and existing roadways.

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The heavy highway use tax is the same as the general highway use tax, i.e. it abides by the same rules. While these commercial vehicle taxes are imposed on business and contractors that operate entire fleets of commercial vehicles, there are many groups that are exempt from the highway use tax and heavy highway use tax. These consist of state and local governments, essential services like the fire department, the police department, ambulance associations and rescue squads, the federal government and the American Red Cross. These accredited bodies apart, commercial vehicles that do not travel much more than 5000 miles each year do not need to pay these taxes. In order to be exempt, the operator of the vehicle must do mileage reporting and submit all papers to the IRS every year.

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Other vehicles that are excused from the commercial vehicle taxes include agricultural vehicles that do not travel over 7500 miles per year, blood collector vehicles, and vehicles that are allowed to travel on public highways but are not considered commercial – like autos that transport mobile machinery, off road vehicles etc. You can file your IRS form 2290 either manually or online. The more convenient method is to file online, and be done with it. Make sure you have copies of your commercial vehicle’s registration and renewal certificates, as you should attach them to the form.