Federal Heavy Highway Vehicle Use Tax For FY 2016-17 Reporting Year


The Internal Revenue Service has just published a revised Form 2290 and instructions required for payment of the federal heavy highway vehicle use (HHVU) tax for the 2016-2017 reporting year.

Most petroleum marketers must pay the annual HHVU tax on each cargo tank vehicle and transport with a gross vehicle weight of 55,000 pounds or greater that travels 5,000 miles or more per year.

The HHVU is important to petroleum marketers because proof of payment of the tax is required to obtain or renew state motor vehicle registrations.

Reporting Year: The 2016-2017 HHVU tax reporting year runs from July 1, 2016 to June 30, 2017.

Vehicles Subject to the HHVU Tax: The HHVU tax is paid on each vehicle with a gross vehicle weight of 55,000 pounds and greater that travels 5,000 miles or more per year. The HHVU applies to most petroleum cargo tank vehicles and transports.

Tax Amount: The amount of the HHVU tax is calculated based on gross vehicle weight (GVW) and the month the vehicle is first used during the reporting year.

The minimum annual HHVU weight tax is $100 for vehicles in use during the period between July 1, 2016 and July 31, 2017 having a GVW of 55,000 pounds and increases to a maximum $550 for vehicles with a GVW over 75,000 pounds.

For vehicles not in use during July 2016, the applicable annual HHVU weight rate is reduced by 1/12 for each calendar month after July 31 until the vehicle is first used.

For example, the annual HHVU tax on a vehicle first used in October of the 2016-2017 reporting year is reduced by 3/12ths of the annual rate based on GVW because it was not in use for the first three months of the reporting year.

The weight rates and monthly proration calculations are fully explained in IRS Form 2290 and instructions.

Payment Due Date: For vehicles placed in use after June 30, 2016, the due date for the HHVU tax is the last day of the month following the month that the vehicle was first used during the reporting year. Payments received after this deadline are subject to penalties and interest.

HHUV Forms and Instructions: IRS Form 2290 (revised 07/16) may be downloaded by Clicking Here. The IRS Form 2290 Instructions may be downloaded by Clicking Here.

Have questions? Please direct them to Mark S. Morgan, PMAA Regulatory Counsel, by sending email to: mmorgan@pmaa.org.