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Vehicle title transfer is the process where the title of the property of a vehicle is transferred from someone to another. This is commonly the case when selling your car to another person If you own, drive, or manage a professional vehicle in the United States of America, then you will need to pay commercial vehicle taxes. While these taxes are criticized by lots of people for their sheer presence, there is a good reason behind why these taxes were introduced originally. There are two basic kinds of commercial vehicle taxes – highway use tax and heavy highway use tax. These taxes have to be filed using IRS form 2290, and thus are federal taxes. Before we go into details about these taxes, let us see what IRS means by a “commercial vehicle.”.

According to the IRS, any automobile that has a total weight of 55,000 lbs or higher is considered a commercial vehicle, and if it travels a minimum of 5000 miles each year on public highways, it is commanded to pay the commercial vehicle taxes in the form of highway use tax and heavy highway use tax. The Internal Revenue Service (IRS) secures these taxes and distributes it back between the states to care for and develop highways and other roads.

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The highway use tax is examined 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 existing 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 considerable wear to public roads when traveled for the stipulated distance each year. Not just that, these vehicles can cause more problem than other if involved in accidents with regular vehicles – both to the highway itself and other automobiles. These taxes are used to install 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 levied on business and technicians that use entire fleets of commercial vehicles, there are many groups that are exempt from the highway use tax and heavy highway use tax. These include state and local governments, important 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 greater than 5000 miles annually do not need to pay these taxes. In order to be exempt, the operator of the vehicle must do mileage reporting and submit all charts to the IRS every year.

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Other vehicles that are exempt from the commercial vehicle taxes include agricultural vehicles that do not travel much more than 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 simpler 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 have to attach them to the form.