If you’re a carrier operating into the United States, you have a long list of actions to comply with rules for motor carriers. Changing border crossing and motor carrier safety requirements are likely at the top of this list.

But there’s one not-new item to address during this time of the year, and that’s the U.S. heavy vehicle use tax (HVUT). While this tax is not new, the annual deadline is approaching. Here’s what to know about the tax to keep your operation in good standing.

Who pays, and when

The HVUT applies to those operating vehicles with a gross weight of 24,948 kg (55,000 lb) or more and operating on a U.S. highway.

The tax year runs from July 1 through June 30 each year. For vehicles operating on U.S. roads in the month of July, the Form 2290 (Heavy Highway Vehicle Use Tax Return) and payment is due by Aug. 31.

But what if you don’t operate a taxable vehicle into the U.S. until later in the tax year? In this situation, the tax must be filed and paid by the end of the month following the month of the vehicle’s first use. For example, for a vehicle is first used during October, the tax is due by the end of November. The tax is prorated for the remaining months of the tax year.

Enforcement for Canada-based carriers

For U.S.-based carriers, enforcement of the HVUT is tracked by the state vehicle licensing office when the carrier registers its vehicles. A different approach applies for Canada-based carriers.

Under Internal Revenue Service (IRS) regulations, foreign-based carriers must provide either of the following upon entry into the U.S.:

• Proof of tax payment/filing, or
• A written declaration in place of the proof of filing.

Canada-based carriers observe the same filing timeframe as other carriers subject to the tax. This means that if you become subject to the HVUT in July, for example, you have until Aug. 31 to file/pay the HVUT. If you operate into the U.S. before the HVUT is filed/paid, your driver can carry a written declaration up until Aug. 31, which includes the following items:

• Name, address, and taxpayer identification number of the person liable for the tax;
• Vehicle identification number (VIN);
• Date the vehicle was first used on public highways in the U.S. during the tax period (or a statement that current entry is the first use);
• Acknowledgment by the person liable for the tax that the use of the declaration to evade the tax will subject that person to a fine and/or imprisonment; and
• Signature of the person liable for the tax.

When the vehicle operates into the U.S. after Aug. 31, your driver must carry proof of HVUT tax payment/filing on the vehicle and present it to a U.S. Customs official upon request.

A few tips

File electronically: It can take several weeks to obtain your proof of tax payment if you file on paper. E-filing is faster and more accurate. It’s also required for those with 25 or more vehicles, but everyone is encouraged to e-file.

Look into tax breaks or exemptions: You may be able to file to suspend the tax if you have limited operations into the U.S. In some cases, you’ll still have to file but no tax is due. If you’re operating logging vehicles, you may qualify for a reduced tax rate.

Carry proof in the vehicle: IRS requires proof of filing or a written declaration. Drivers must have one of these to present to border enforcement.

Remember to pay when adding trucks between filings: If you add trucks to your fleet between annual filings, you may need to file before your next annual due date.

The HVUT is just one of the many U.S. programs that applies to Canadian carriers. Be sure to understand the deadlines to keep your operation in good standing and to avoid paying interest and penalties.