Four Types of HVUT Exempt Vehicles

Last Updated on  May 27, 2021  By  Eform2290 Editorial Team

The tax year is round the corner and thousands of commercial vehicle owners and trucking businesses make provisions to e-file their form 2290 and pay the Heavy Highway Vehicle Tax return.

While most commercial vehicles use the American highways, not all of them qualify for the HVUT tax. Today we will take a look at the four different types of vehicles that are exempted from paying the HVUT tax.

1. Suspended Vehicles

You must file form 2290 and pay the HVUT tax if your vehicle weighs 55,000 or more and has crossed the 5,000-miles limit. If your vehicle has not crossed the 5,000 miles limit in a given tax period, it falls under the tax-suspended or suspended vehicle category.

You don't need to pay HVUT tax for suspended vehicles, but you need to file form 2290 to report to the IRS that your vehicle is tax-suspended. Once the suspended vehicle exceeds the mileage use limit of 5,000 miles (7,500 miles for agricultural vehicles), the HVUT tax will be due.

2. Agricultural Vehicles

An agricultural Vehicle is a registered highway motor vehicle that is primarily used for farming purposes. Farming purposes include clearing land, repairing fences & farm buildings, building terraces or irrigation ditches, cleaning tools or farm machinery, and painting.

If your vehicle is used for operations such as canning, freezing, packaging, or other processing operations, it will not be classified as an agricultural vehicle.

3. Exempted Vehicles

If your vehicle is used or operated by government agencies or falls under any of the below categories, it will be classified as a tax exempt vehicle, and you don’t need to pay tax for it. Tax exempt vehicles are owned or operated by:

  • The Federal Government
  • The District of Columbia
  • A state or local government
  • The American National 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; or
  • A mass transportation authority if it is created under a statute that gives it certain powers normally exercised by the state
  • Qualified blood collector vehicles used by qualified blood collector organizations
  • Mobile machinery that meets the specifications for a chassis as described under Specially designed mobile machinery for non-transportation functions later

4. Logging Vehicles

Logging vehicles are vehicles exclusively used for the transportation of harvested products from a forested site to another. Your vehicle will be classified as logging vehicle if:

  • 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); and
  • It is registered as a highway motor vehicle used exclusively for the transportation of harvested forest products. A vehicle will be considered to be registered under the laws of a state as a highway motor vehicle used exclusively in the transportation of harvested forest products if the vehicle is so registered under a state statute or legally valid regulations.

Products harvested from the forested site may include timber that has been processed for commercial use by sawing into lumber, chipping, or other milling operations if the processing occurs before transportation from the forested site. Logging vehicles are taxed at reduced rates.

Final Thoughts

While filing your HVUT taxes, it is important to know whether your vehicle is HVUT tax exempt or not. Once you find out the category of your vehicle, you can e-file your form 2290 effortlessly through an IRS approved e-filing service provider like eForm2290.com, that offers a wide range of services that meets all your tax filing needs.

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