| TIME
TO FILE AND PAY YOUR FEDERAL HEAVY VEHICLE USE TAX AGAIN, AND...
REVISED HOURS-OF-SERVICE
RULES UNVEILED
By Wayne
Schooling
For the first time since 1939,
the trucking industry has new hours-of-service rules. These rules
govern drivers transporting freight in interstate commerce with a
gross vehicle weight rating of 10,000 pounds or more, and operating
vehicles transporting hazardous materials in quantities requiring
placards.
The new hours-of-service rules were announced April 24, 2003 by the
Department of Transportation (DOT). The new rules will allow truckers
one more hour of driving, but will cut the number of hours they may
work overall by one hour. In addition, the updated rules will require
truckers to take two more hours off before resuming work.
The new regulations will allow drivers 11 hours of driving time following
10 consecutive hours off duty and no driving after 14 hours of on-duty
time (a combination of driving and all other on-duty time). The 60
hour/7 day and 70 hour/8 day limits remain unchanged, but now the
rules will include a provision that allows a driver to restart the
60 or 70 hour clock after having 34 consecutive hours off duty.
The updated regulations also include a new exception for drivers who
regularly return to their normal work reporting location. Under this
exception, a driver is allowed to accumulate 11 hours of driving time
within 16 consecutive hours on-duty once every seven days. The split
sleeper berth portion of the regulations remains the same, but instead
of accumulating eight hours in the sleeper berth in two periods, the
driver would have to accumulate 10 hours in the sleeper berth in two
periods.
The requirements for passenger-carrying vehicles will remain the same
as the current regulations: 10 hours of driving following 8 consecutive
hours off-duty and no driving after 15 hours of on-duty time following
8 consecutive hours off duty. The 60 hour/7 day and 70 hour/8 day
limits will also remain unchanged. A reset provision for drivers of
passenger-carrying vehicles is not included in the new regulations.
The new requirements were officially published in the Monday, April
28, 2003 Federal Register. Compliance with the new requirements is
mandated on January 4, 2004. FMCSA is not allowing early compliance
with the new regulations. Until January 4, 2004, drivers and motor
carriers must comply with the standards currently in place. The rules
for a driver’s daily log remain unchanged.
It is estimated that the new rule will save up to 75 lives and prevent
as many as 1,326 fatigue-related crashes annually. The new rules are
easy to understand, easy to comply with, and easy to enforce. I'll
keep you posted on any new developments that may occur.
FEDERAL
HEAVY VEHICLE USE TAX
It’s that time of the year again
– when Federal Highway Use Tax on heavy motor vehicles operated on
public highways must be paid to the Internal Revenue Service by the
motor carrier or owner. The tax applies to highway motor vehicles
having gross weights of 55,000 pounds or more, and includes all trucks,
tractors and buses. A highway motor vehicle includes any self-propelled
vehicle designed to carry a load over public highways, whether or
not it was also designed to perform other functions. A public highway
is any road in the United States that is not private, including federal,
state, county, and city roads.
You must file Form 2290 and Schedule 1 for the July 1 through June
30 tax period if a taxable highway motor vehicle is registered (or
required to be registered) in your name under any state, District
of Columbia, Canadian, or Mexican law at the time of its first use
during the period. You may be an individual, a corporation, a partnership,
or any other type of organization (including nonprofit groups). Proof
of payment of this tax is required in order to register your vehicle
in any jurisdiction, both for the first time and at your renewal time.
Schedule 1 is used to list all reportable vehicles by category and
vehicle identification number (VIN). Form 2290 is used to figure and
pay any tax on heavy vehicles, or to claim exemptions from the tax
when such vehicles are expected to be used on public highways 5,000
miles or less (7,500 miles or less for agricultural vehicles) during
the tax period. Additional returns must also be filed if the taxable
gross weight of a vehicle increases during the tax period.
The tax period begins on July 1 and ends the following June 30, and
you must pay the full year’s tax on all vehicles that you have in
use during the month of July. The tax can be paid in a single payment
with your return, or in four equal installments. Returns must be filed
by the last day of the month following the month of the vehicle’s
first taxable use in the tax period, even if you are filing the return
just to suspend the tax for any vehicle.
Yes, Canadian and Mexican registered vehicles that operate in the
United States must also pay the tax! The tax rate is, however, reduced
by 25% for any vehicles registered in Canada or Mexico. The reduced
tax applies whether or not the vehicles are also required to be registered
in the United States.
Records must be kept for all taxable highway vehicles registered in
your name, and kept for at least three years after the date the tax
is due or paid. You should also keep copies of all of the returns
and schedules you have filed.
Full instructions attached to Form 2290 show who must file, where
to file, exemptions from filing, how to pay the tax, record keeping
requirements, determining the taxable gross weight and other general
information. Forms are available at any local Internal Revenue Office
or may be obtained from the IRS website located at www.irs.gov.
Remember, this tax must be paid or you will not be able to register
your vehicle. Until next month, “Drive Safe - Drive Smart!”
|
