Shanel White: Posted on Wednesday, October 26, 2011 1:59 AM
For those who are already apart of the motor carrier industry, the term heavy vehicle usage tax is probably second nature to you; so for those who are coming into the motor carrier industry; you will learn what HVUT is and how it affects you. Heavy Vehicle Usage Tax, also known as HVUT, is an excise tax mandated by the IRS. Highway motor vehicles (vehicles such as tractors, truck tractors, buses, etc.) that weigh 55,000 lbs or more are subject to HVUT. In essence, vehicles that operate large loads and carrying weights are subject to the HVUT. The following areas will provides more insight into the regulation of Heavy Vehicle Usage Tax: 1. Exemptions from filing the tax, 2. Important factors to consider when filing and 3. Filing Time-frame
Exemptions From Filing the Tax:
Mainly those who are exempt from filing the tax are the vehicles of local, state and federal governments. Also volunteer organizations that assist in public emergency or disaster matters are exempted as well.
Important Factors to Consider When Filing:
- You must have an EIN (Employer Identification Number) when filing the tax
- Form 2290 is the form used when filing HVUT
- Must list all VIN (Vehicle Identification Numbers) in the fleet subjected to the tax
- Failure to file the Form 2290 or pay the tax on time will call for penalties and interest
Filing Time-Frame:
Congress is implementing changes to the HVUT filing regulations. Currently, vehicles subjected to the HVUT, who operated during July-September 2011 will have a grace period in filing the tax. The IRS had enacted an extension of filing the tax for those who fall under the July 1 reporting tax period. Accordingly, heavy vehicle operators have until November 2011 to file their HVUT. The extension ensures that heavy vehicle operators will have their necessary credentials necessary operate their vehicles and file their taxes on time.
If you are not sure where to start with your Heavy Vehicle Usage Tax situation, are new to HVUT, have tax issues, or just need overall assistance, Wisdom & Authority Titling Solutions is available to assist you with your Form 2290 filing needs.
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SHANEL WHITE: Posted on Tuesday, October 11, 2011 11:42 PM
If you are leasing a vehicle in Virginia or are considering doing so, this segment provides comprehension of the titling and registration aspect of leasing a vehicle in Virginia. In addition to that; light will be shed on some challenges that can transpire when leasing a vehicle in Virginia. When you are leasing a vehicle in Virginia, that vehicle is subject to Virginia's vehicle titling and registration laws (even if the leasing company is out of state). In regards to titling and registration the lessee doesn't own the vehicle, the lessor does. With that being said, the lessor (the leasing company), is responsible for allowing the lessee to get the vehicle titled and registered in their designated state. Please be advised that as the lessee, you should use due diligence, to ensure that the leased vehicle is titled and registered properly. The following entails areas that you should be mindful of when leasing or transferring a leased vehicle in Virginia: - The leasing company sometimes assume responsibility of the costs of the vehicle registration (alleviating you from costs of paying for decals every year, two years, etc.)
- As the lessee, you are not the vehicle owner, so on the title, you will not appear as the "owner'. On the registration card, the same matter applies, however you will be listed under the lessor, along with your address and the garage jurisdiction of the vehicle.
- As a lessee, you don't have to pay property tax in Virginia, because technically you don't own the vehicle.
The following are challenges that sometimes occur when you are leasing or transferring a leased vehicle in Virginia: - Dual payment of sales tax may be collected (PLEASE DON'T CONFUSE SALES TAX WITH PROPERTY TAX). For example, when the lease was first taken out, you may have paid sales tax and then if you buy the lease out, you may pay sales tax again. The sales tax is transmitted to the DMV.
- If your leased vehicle was originally titled out of state and you are transferring the vehicle to Virginia, you may have to pay sales tax (depending on the situation and how long you've been leasing the vehicle)
- If the leased vehicle isn't titled and registered properly, a property tax mishap might occur; alarming you that you owe property taxes for the "leased vehicle". Note: once again, you don't own the vehicle, so you don't have to pay property taxes.
Wisdom & Authority Titling Solutions is committed to assisting you with any titling and registration concerns that you may have with your leased vehicle in Virginia. If you are transferring your leased vehicle to Virginia; you owe it to yourself to be in the know and Wisdom & Authority Titling Solutions will show you how.
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SHANEL WHITE: Posted on Saturday, October 8, 2011 11:27 PM
Some weeks ago, I presented a three part series entitled, Intrastate Operating Authority in Virginia. However, this segment focuses on Interstate Operating Authority. Interstate Operating Authority is a structure that shows the type of transport that can be conducted, jurisdictions that the authority can be operated in and the overall type of business that can be operated by the operator. Interstate Operating Authority entails the crossing of state lines and is mandated by federal law and in essence is a part of the Federal Motor Carrier Safety Administration and DOT (Department of Transportation). In obeserving Interstate Operating Authority, two areas will also will be addressed: A. Who is required to have Interstate Operating Authority? and B. What are Some of the Filing Requirements? Who is Required to Have Interstate Operating Authority? - Common Carriers
- Contract Carriers
- Brokers (matching loads for trucking companies)
Please be advised that private carriers, and for-hire carriers with an exempt status, aren't required to have Interstate Operating Authority. What are Some of the Filing Requirements? Some of the filing requirements are: (A COMPILED LIST) - DOT number
- MC number
- Cargo Insurance
- Surety Bond (if applicable)
- BOC-3
If you are new to the Operating Authority process, are stuck in the middle of the process or just need overall assistance; Wisdom & Authority Titling Solutions, is available to provide you with solutions for any concern that you may have regarding Interstate Operating Authority.
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