ExpressIFTA Blog

Wednesday, June 20, 2018

Here Are the Differences Between Road Tax 2290 And IFTA

If you are new to the trucking industry, it is understandable that it is hard to remember all the various abbreviations and tax forms. So to give you an extra hand, here are the difference between road tax 2290 and IFTA.

What is Road Tax 2290?

The IRS Form 2290 or Heavy Vehicle Use Tax is a federal tax on commercial vehicles that:
  • Have a total gross weight of more than 55,000 pounds
  • Operate on public highways for more than 5,000 miles per year
Truck taxes are annually collected and used for highway construction and maintenance. For more information click here for the Federal Highway Administration website.

But what does “gross weight” mean?
  • This is the weight of your truck when it is fully equipped for a haul. This will include any equipment you usually carry such as lubricants, fuel, etc.
  • However, this does not include you and any specialized equipment you use on a blue moon like a compressor or crane.

Your HVUT tax amount is $100 plus (approximately) $22 for every 1,000 Ibs over the taxable gross weight of 55,000 lbs. The maximum HVUT tax amount you can owe is $550 if your vehicle is 75,000 pounds or more. For a more accurate HVUT tax amount click here.

Please note that your tax amount will vary greatly if your vehicle is exclusively used for logging.

What is IFTA?

IFTA, or the International Fuel Tax Agreement, is an arrangement between 48 of the United States and 10 Canadian provinces to report fuel use by motor carriers that operate in more than one jurisdiction (state).

To show you filed your IFTA return and paid your taxes you will be issued an IFTA license and IFTA stickers. The license should be kept in your truck at all times, and the IFTA stickers are displayed under your driver’s side window. 

Unlike the annual Heavy Vehicle Use Tax, your IFTA report is quarterly.
Your vehicle qualifies for IFTA reporting if you travel between states and :
  • Have two axels and a gross/registered weight of more than 26,000 lbs
  • Have a combined weight exceeding 26,000 lbs
  • Have three or more axels regardless of vehicle weight

Deadlines Up Ahead Truckers

IFTA Deadline: July 31, 2018 (2nd Quarter)
IRS Form 2290 (HVUT): August 31, 2018

If you have any questions regarding how to file your IFTA report, don’t hesitate to contact our dedicated 100% US support team. Or if you still need to file your IRS Heavy Vehicle Use Tax our sister product ExpressTruckTax is always here to help as a market leader.

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Wednesday, June 13, 2018

You Need to Know What The Senate DOT Bill Contained

The DOT bill released by the U.S. Appropriations Committee did not contain any trucking policy reform such as the ELD (Electronic Logging Device) mandate and Denham Amendment. The bill passed but the Senate Appropriations Committee differs from its counterpart passed by the House Committee. So what was included? You need to know what the Senate DOT bill contained. 

You Need to Know What The Senate DOT Bill Contained

The bill passed by the U.S. House included the proposed changes to the ELD mandate for livestock haulers. It also prevented the Safety Fitness Determination (SFD) rule without the implementation of the Compliance, Safety, Accountability (CSA) program.

Unlike the House bill, the Senate's does not heavily impact the trucking industry. It mainly focuses on general litigation and FMCSA mandated deadlines.

The Senate Appropriations Committee did direct the DOT to evaluate the needs of livestock drivers in relations to the ELD mandate further. The plan passed by the U.S. House extended the ELD exemption for both livestock and insect haulers to September 2019. The Senate committee stated that lawmakers should “consult with stakeholders, the Department of Agriculture and Congress on legislative solutions for drivers with unique working conditions.”

The current DOT funding expires at the end of September, however, the Senate has not set a date for considering the bill. Once consideration begins in the Senate, legislatures can add trucking reforms during the amendment process. The U.S. House has yet to bring the DOT appropriations bill to the floor as well.

If the two governing bodies pass a different version of the bill, the lawmakers will enter a conference committee to produce a finalized bill. This will then be passed again by the respective governing bodies. Any trucking reform that is attached would be subject to intense review during the committee process.

We want to hear from you! Click here to share. Let us know your thoughts on the DOT bill!

For more trucking news and information click here.

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Wednesday, June 6, 2018

You Need to Know About The Possible ELD Exemption for Small Carriers

A bill filed in the U.S. House of Representatives on May 23, 2018, may bring ELD exemption for small carriers. If passed, carriers with 10 or fewer trucks will be exempt from the Department of Transportation’s (DOT’s) electronic logging device mandate permanently. Here is what you need to know about the possible ELD exemption for small carriers.

You Need to Know About The Possible ELD Exemption for Small Carriers

The Small Carrier Electronic Logging Device Exemption Act of 2018 is sponsored by Representatives Collin Peterson (Dem-Minnesota) and Greg Glanforte (Rep-Montana). This is the first attempt to exempt small carriers and owner-operators from the ELD mandate specifically.

The Small Carrier Electronic Logging Device Exemption Act of 2018 would allow carriers with 10 or fewer trucks to use paper logs instead of the mandated electronic logging devices. For this piece of legislation to pass it will need to be approved by the House, Senate, and President Trump. 

Representatives Collin Peterson and Greg Glanforte also introduced a bill that would exempt drivers hauling agricultural commodities from the ELD mandate. Livestock drivers have received an ELD exemption until the end of September but will need to comply after this date. Agricultural truckers have only until June 19th to switch from paper to an electronic logbook.

The Owner-Operator Independent Drivers Association (OOIDA) petitioned FMCSA in November to allow small business truckers to continue using paper logs until December 2022. However, the FMCSA has yet to issue a decision on the topic.

As this issue continues to develop, we will continue to deliver you the latest news and information in the trucking industry. Click here for additional blog content.

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