If you own a heavy vehicle, you likely pay taxes on it. And you likely would prefer to pay less tax on it if possible. There are a few exceptions and exemptions from the heavy vehicle usage excise tax, which we’ll discuss below. Read on to find out if you can minimize – or eliminate – some of the tax payment!
Logging Vehicles
Logging vehicles pay 75% of the tax that a non-logging vehicle would pay. How do you know if you drive a logging vehicle? Your truck has to meet both of the requirements below:
- It is used exclusively for the transportation of products harvested from the forested site, or it exclusively transports the products harvested from the forested site to and from locations on a forested site (public highways may be used between the forested site locations).
- It is registered (under the laws of the state or states in which the vehicle is required to be registered) as a highway motor vehicle used exclusively in the transportation of harvested forest products.
You must still file a 2290 for a logging vehicle, but at least you pay a bit less.
Qualified Blood Collector Vehicles
No, not the ones driven by vampires – or, not just those. Only vehicles used by qualified blood collector organizations meet this requirement. In addition, at least 80% of the use of the vehicle in the prior tax period must have been for the collection, storage, or transportation of blood. In the first tax period of usage for the vehicle, the organization owning and using the vehicle can certify to the reasonable expectation that it will be used 80% of the time for collection, storage, and transportation of blood.
Non-Highway Motor Vehicles
There are three categories to consider here, but these are basically vehicles that you use for a specific purpose, not for hauling a load of freight.
- Specially designed mobile machinery for non-transportation functions – Basically, this vehicle has machinery mounted to the chassis that allows the vehicle to perform mining, construction, farming, etc, operations. The chassis would have to undergo substantial modification to perform any hauling, and it must be specially designed for the intended purpose.
- Vehicles specially designed for offhighway transportation – These vehicles must be specially designed to perform a specific function, such as hauling a particular load not on a highway. Size matters. If the truck won’t fit on the highway, it qualifies. Other vehicles may also qualify if they are not subject to licensing or safety requirements, or if they cannot transport a load at a minimum of 25 MPH.
- Non-transportation trailers and semitrailers – Picture the lot where a crew builds a large building. The site foreman has a trailer to meet contractors, suppliers, etc. That is a non-transportation trailer.
If those apply to your vehicle, you do not file a 2290 for it.
Vehicles Exempted Based on Specific Owner/Operator Types Some organizations do not fall under the 2290 regulations. These exempt groups include:
- The federal government
- The District of Columbia
- A state or local government
- The American Red Cross
- A nonprofit volunteer fire department, ambulance association, or rescue squad
- An Indian tribal government but only if the vehicle’s use involves the exercise of an essential tribal government function
- A mass transportation authority if it is created under a statute that gives it certain powers normally exercised by the state
You’ll notice the trend there of either government institutions or non-profit organizations owning the vehicles. If you work for one of those organizations and use the vehicle exclusively for that organization, your vehicle is exempt.
Bottom Line
That’s it! If your vehicle falls in one of those three main categories, you do not need to complete form 2290, or you receive a lower rate if you have a logging vehicle. If you are not exempt from the law, be sure to remain in compliance by using the simple ez2290.com tools. You can complete the process and receive your Schedule 1 in just a few minutes. As the name says, it’s easy!
