Heavy Vehicle Use Tax: Everything You Should Know About

Every time you should deliver cargo from one point to another, you have to be ready to pay various fees, charges, and taxes alongside payments to your freight forwarder. If you cooperate with a professional logistics broker, the expert will explain to you what you are paying for. If you desire to keep everything under control, it’s up to you to get to know about the main types of charges. The following information will be useful for those business owners who deal with trucks with a gross weight of 55,000 pounds.
Heavy vehicle use tax or HVUT for short is a federal excise tax. It is assessed annually on heavy vehicles operating on public highways at registered gross weights equal to or exceeding 55,000 pounds. The gross taxable weight of a vehicle is determined by adding the unloaded weight of the motor vehicle and any trailers together with the maximum load customarily carried on-road by the truck-trailer combination. It should be highlighted that the maximum HVUT is $550 per year. Thus, even if you are interested in LTL delivery services, this sum is to be paid if the total weight of the auto you rent is over 55,000 pounds.
If you are a logistics broker, you should know the following facts about HVUT:
The HVUT is paid using Form 2290 from the Internal Revenue Service.
You have to submit this form and pay any charges owed. Then, you are to receive a “stamped” Schedule 1, an official proof of payment. It is accepted by the DOT, DMV, and other federal authorities. All the transactions and operations may be conducted online.
There are strict deadlines for providing the form.
The FHUT season lasts from July 1st until June 30th of each year. During this period you are obliged to report using the IRS Form 2290. The form must be filed on the first month that the auto is used on public highways (not when the truck is registered). If you miss deadlines, you are to pay a penalty of 4.5% of the total amount you owe. This will accrue on a monthly basis for up to five months. It’s clear it’s better to pay on time.
You are not obliged to pay this charge if you possess vehicles not considered highway motor autos.
By the way, it should be noticed that HVUT is of prime importance when it comes to the development of transportation infrastructure. It helps to strengthen the nation’s economic productivity, ease congestion, improve the efficient movement of goods, etc.
If you are a business owner who hires carriers this tax is not your responsibility. The specialists of the freight forwarding company you cooperate with are to include this sum in your final bill. For a single user, it won’t be rather high. It’s clear the heavier your cargo is, the more you have to pay.
To sum it up, it has to be noticed that it’s better to pay all the taxes when dealing with freight forwarding services. Otherwise, you risk experiencing significant financial issues. Moreover, your cargo may be confiscated.