Here’s a simple guide to help you understand the HVUT agricultural vehicles and report them on Form 2290 appropriately.
- What is an agricultural vehicle?
- How does the IRS define an agricultural vehicle?
- How is an agricultural vehicle different from regular commercial highway motor vehicles?
- How to report agricultural vehicles on HVUT Form 2290?
- eFile HVUT Form 2290 with EZ2290 & report agricultural vehicles
What is an agricultural vehicle?
An agricultural vehicle is just another vehicle that instead of transporting products and processed commodities, it transports raw, natural materials. Things like wood, cocoa beans, coffee beans, fruits, vegetables, pulses, herbs, seeds, and other agricultural commodities are transported with agricultural vehicles.
In the HVUT tax reporting practice, agricultural vehicles are taxed slightly less when compared to regular commercial motor vehicles (CMV). Agricultural vehicles are termed “logging” vehicles because, in this context, logging vehicles are primarily used for transporting forestry goods and commodities.
2290 HVUT Agricultural Vehicles qualify for HVUT tax filings if the vehicle’s taxable gross weight is 55,000 pounds or more. This taxable gross weight metric is the same for all highway vehicles.
How does the IRS define an agricultural vehicle?
The definition is loosely stated and talks about “carriers” with tractor equipment (meaning a trailer), but it also includes self-propelled tractors and motor trucks that are designed for hauling farm equipment on a flatbed.
The IRS does not specifically define agricultural vehicles. However, in the IRS’ view, a highway agricultural vehicle is generally defined as a truck or truck semi-trailer having two or three wheels, that is used to transport agricultural products to market or warehouses.
For an agricultural vehicle to be qualified for HVUT reporting, it has to meet two requirements:
- The vehicle must weigh at least 55,000 pounds. This is the ‘unloaded’ weight of the vehicle with all the equipment and components which are necessary for regular operations.
- The vehicle must be used for agricultural product/material transportation only.
How is an agricultural vehicle different from regular commercial highway motor vehicles?
|Agricultural Vehicle||Commercial Highway Motor Vehicle|
|Agricultural vehicles are only used for transporting forestry goods, agricultural commodities, and raw materials.||Commercial vehicles are used for transporting all kinds of commercial goods and products.|
|The minimum tax rate for a qualified HVUT agricultural vehicle is $75.||The minimum tax rate for a qualified HVUT commercial vehicle is $100.|
|Agricultural vehicles are reported in the “logging” columns of Form 2290.||Regular vehicles are reported in the “vehicles except for logging” columns of Form 2290.|
|Agricultural vehicles have a mileage use limit of 7500 miles.||Non-logging vehicles have a mileage use limit of 5000 miles.|
How to report agricultural vehicles on HVUT Form 2290?
The information reported on the 2290 form will assist the IRS in determining the tax due on a vehicle and impose the HVUT tax on the vehicle owner(s) appropriately.
- Select the weight range of your agricultural vehicles in the ‘tax computation’ section of Form 2290.
- Enter the number of vehicles you own in the appropriate “logging vehicles” columns.
- Report the vehicle identification number and the month of first use in Form 2290 Schedule 1
- Enter the tax suspension details of your agricultural vehicles (other than the ones reported on the ‘tax computation’ section of Form 2290 and Schedule 1).
eFile HVUT Form 2290 with EZ2290 & report agricultural vehicles
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Other Useful Resources From Ez2290 Blog
- Guide To Understanding Your EIN & Why You Must Have An EIN To File Form 2290?
- 2290 Payments: How To Use EFTPS To Make Quick & Easy HVUT Payments Online?
- 5 Ways To Reduce 2290 Vehicle Downtime
- Calculating Federal Excise Tax HVUT For Heavy Trucks, Trailers, And Tractors
- HVUT Form 2290 Late Filing Penalties