We are back, trucking nation. Today, at the blog, we are going to discuss about the different kind of vehicles filed with form 2290. Like all gold does not glitter, every truck/ heavy vehicle you see on the highway are not mandate to file form 2290. There are categories of vehicles and tax is filed accordingly and among them very popularly known, taxable vehicles are the one of the vehicle type that is filed with form 2290.
So today, we are going to discover the other kind of vehicles, hidden within form 2290. Stick around, we will tell you everything you need to know.
Taxable Vehicles:
Being the most popular type of vehicle is Taxable vehicles. These vehicles weight more than 55,000 pounds or more and are used on public highway for transportation. It is also believed that these vehicles cause most of the damage, due to the weight they carry. And the tax, which is paid through form 2290 is directly contributed to the maintenance of the highway.
Suspended Vehicles:
The next category of vehicle under the form 2290 is suspended vehicles. These vehicles do not cross more than 5,000 miles a year (7,500 miles for agricultural vehicles) and they are not accounted as taxable vehicles. They are not liable to pay tax, but have to keep IRS informed about their suspension.
Vehicles That Come Under This Category:
- Commercial vehicles traveling less than 5,000 miles a year
- Mobile machinery for non-transportation function, non-transportation trailers and semi-trailers are not considered commercial vehicles
- Official blood collectors by blood banks and organizations come under this category.
Important: In case, if the annual mile exceeds 5,000 for commercial vehicles and 7,500 for agricultural vehicles, the extra miles are calculated as payable miles.
Exempted Vehicles:
Some of the vehicles are owned and operated by the government itself and these vehicles are categorized as Exempted vehicles.
The Vehicles That Come Under This Category Are:
- The Federal Government,
- The American National Red Cross,
- The District of Columbia,
- A nonprofit volunteer fire department, ambulance association, or rescue squad,
- A state or local government,
- Indian tribal governments (to carry out essential tribal government functions)
- Mass transportation authority’s (under certain conditions)
In addition, exempt from the tax (not required to file Form 2290) are:
- Qualified blood collector vehicles used by qualified blood collector organizations, and
- Mobile machinery that don’t come under the category of heavy vehicle.
Logging Vehicles:
This type of vehicle constitutes as the next type of vehicle. These vehicles are designed to carry out the logging operations from the forestry area to the location and vice versa and very occasionally, they use the public highway. These vehicles are registered highway vehicles; however, the tax rate is comparatively less than what is paid by the taxable vehicles.
Note: There is no special tag or number place required to identify the vehicle is used for logging or transporting harvested forestry products.
Agricultural Vehicles:
Agricultural vehicles are categorized as a part of suspended vehicles, since they are liable to travel up to 7,500 miles only each year. They are exclusively used for the delivery of agricultural goods in and around the place.
Vehicles under This Category are:
- Primarily used for farming purposes
- Registered under the state law as a highway motor vehicle but are exclusively used for farming and agricultural purpose
Important Note: There is no special tag or identification to recognize if the vehicle is exempted from filing form 2290, but a detailed report should be sent to IRS about your usage. In addition, if the vehicle crosses more than 7,500 miles, you’re liable to pay Heavy Vehicle Used Tax for the exceeded miles.
So here is the list of vehicles that come under form 2290. And now you have to categorize your vehicle and file form 2290 online with our only authorized efiling portal TaxExcise.com. However, you can reach our Tax Experts @ 1-866-245-3918 or shoot an email to support@taxexcise.com. You have invested your trust in us; we will never let you down. Stay happy, stay blessed.