Manufacturers & Distributors ARTICLE -

Head Out on the Highway

Prepare for HVUT before You Hit the Road

Target Audience: Manufacturing and Distributing Companies, Manufacturing Shipping Department Employees, M&D Industry, Manufacturing Distributors, Transportation Company Executives

Manufacturers that transport heavy materials using vehicles that have a taxable gross weight of at least 55,000 pounds are likely familiar with the federal Heavy Vehicle Use Tax (HVUT). The next HVUT tax period starts July 1, 2009, and ends June 30, 2010.

The IRS considers a highway motor vehicle to be “a vehicle moved by its own motor and designed to transport a load over the public highways, even if it is designed to do other things.” This includes trucks, tractor-trailers and buses. Vehicles driven less than 5,000 highway miles during a tax period are exempt from HVUT.

How is Taxable Gross Weight Determined?

It’s the sum of the unloaded weight of the vehicle plus the weight of the maximum load it usually carries. For example, if your truck weighs 48,000 pounds and its maximum load weighs 12,500 pounds, its taxable gross weight would equal 60,500 pounds. This would result in a $232 annual tax. A chart that details the annual tax as it correlates to taxable gross weight is provided on IRS Form 2290.

When you pay HVUT on a particular vehicle depends on when you first use it on a public highway during the tax period. The tax is due by the last day of the month following the month you first drive the vehicle.

So, for example, if the first time you drive your tractor-trailer on a public highway during the 2009-2010 tax period is July 2009, you’ll have to file Form 2290 by Aug. 31, 2009. Be aware that you’ll have to show proof of HVUT payment to register taxable vehicles with your state’s motor vehicles department.

If you purchase a new vehicle after the tax period is under way, your HVUT will be prorated from the month you first use the truck until the end of June. The instructions for Form 2290 include a chart detailing what your prorated HVUT will be, depending on when you purchase your new vehicle.

Find out how our M&D accountants can add value to your business. Email us or call us at 1 (888) 875-9770.

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