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Regardless of the purchase date, some vehicles are exempt from the requirement to pay HVUT because of the mileage on the vehicle, because the vehicle is registered to a governement entity or a specific organization, or because of the type of vehicle.
1. Mileage exemption - Vehicles driven 5,000 miles a year or less (7,500 miles a year or less for agricultural vehicles).
If a vehicle is exempt because the vehicle is driven a limited number of miles, the customer must present an original Form 2290 (Schedule 1, Part 2) stamped by the IRS for the current tax year which lists the exempt vehicles. Photocopies will not be accepted for exempt vehicles.
2. Government entities or organizations – These vehicles are not required to be listed on the 2290 Schedule I. However, a Form MC2290 – Heavy Vehicle Use Tax Exemption must be completed.
The following government entities or organizations are not required to pay a HVUT; therefore, a Form 2290 will not be required for those vehicles and the vehicles may be registered or renewed following the normal process.
a) The federal government
b) The District of Columbia
c) A state or local government
d) The American Red Cross
e) A nonprofit volunteer fire department, ambulance association or rescue squad
f) A Native American tribal government only if use of the vehicle involves the exercise of an essential tribal government function
g) A mass transportation authority if it is created under a statute that gives it certain powers normally exercised by the state
Customers can get immediate help with their Form 2290 questions by calling the IRS Help Line at 1-866-699-4096 (toll free). The hours of operation are Monday through Friday, 8 a.m. to 6 p.m. EST, or by visiting their Web site, www.irs.gov.
3. Specially designed mobile machinery for nontransportation functions - A self-propelled vehicle is not a highway vehicle if all the following apply. These vehicles are not required to be listed on the 2290 Schedule I. However, a Form MC2290 – Heavy Vehicle Use Tax Exemption must be completed.
a) The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways,
b) The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, regardless of whether the machinery or equipment is in operation, and
c) The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load.
4. Vehicles specially designed for off-highway transportation - These vehicles are not required to be listed on the 2290 Schedule I. However, a Form MC2290 – Heavy Vehicle Use Tax Exemption must be completed.
A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicle's capability to transport a load over a public highway is substantially limited or impaired.
To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway.
5. Nontransportation trailers and semi-trailers - These vehicles are not required to be listed on the 2290 Schedule I. However, a Form MC2290 – Heavy Vehicle Use Tax Exemption must be completed.
A trailer or semi-trailer will not be treated as a highway vehicle if it is specially designed to function as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. For example, a trailer that is capable of functioning only as an office for an off-highway construction operation is not a highway vehicl
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