Heavy Highway Vehicle Tax

Owning and operating a successful trucking company can be challenging—particularly in today’s hyper-competitive market. It is crucial that your business complies with all federal and state tax regulations, including the Heavy Highway Vehicle Tax. 

At Williams Accounting & Consulting, we specialize in helping truck company owners navigate complex tax matters. In this article, our trucking industry accountants explain the most important things that business owners need to know about the Heavy Highway Vehicle Use Tax. 

What is the Heavy Highway Vehicle Use Tax?

The federal government imposes an additional tax on large vehicles. As described by the Internal Revenue Service (IRS), the Heavy Highway Vehicle Use Tax is a specialized federal tax that applies to vehicles that are 55,000 pounds or larger. All trucking companies that are subject to this annual tax are required to pay it in a timely manner. 

Know the Cost of the Heavy Highway Vehicle Use Tax 

The Heavy Highway Vehicle Use Tax is assessed each year on July 1st. The tax period for this financial obligation runs through June 30th of the following year. The cost of the tax will depend on the weight of the truck. Here is what you need to know about the tax rate: 

  • Truck Under 55,000 Pounds: Not subject to the tax. 
  • Truck Between 55,000 and 75,000 Pounds: A $100 tax, plus an added $22 for each 1,000 pounds. 
  • Truck Weighing at least 75,001 Pounds: Maximum tax rate of $550.

Know the Penalties for Failure to Pay the Heavy Vehicle Tax

Large commercial trucks are regulated at both the state and federal level. State trucking authorities are required to certify that commercial trucks registered in their jurisdiction have met their tax obligations—particularly their duty to pay the Heavy Highway Vehicle Use Tax. A truck company that fails to pay the tax could face significant sanctions, including tax penalties and a suspension of its ability to operate. 

Trucking Industry Taxes a Valid Business Expense

All trucking businesses should have proper accounting measures in place. You need to carefully track your revenue and expenses—both for tax purposes and for general business purposes. It is worth emphasizing that the Heavy Highway Vehicle Use Tax is a valid business deduction. 

In other words, whatever amount your business paid to the IRS for heavy highway vehicle use can and should be written off as a business expense when you complete your Schedule C form. An experienced business consultant can help you get organized and minimize your tax liability. 

Contact Our Trucking Industry Consultants for Immediate Assistance

At Williams Accounting & Consulting, we have extensive experience helping owners-operators and truck companies with a wide range of tax matters. If you have questions about the Heavy Highway Vehicle Tax, we are more than ready to help. Get in touch with us by phone at 770-964-4100 or contact us online for your completely confidential consultation. With office locations in Atlanta and New Orleans, we help trucking businesses with tax issues throughout the entire region.

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