Where Does Federal Heavy Vehicle Use Tax (HVUT) Revenue GO?

As citizens, it is our responsibility to know where our hard-earned tax dollars are going towards. Being that the truck tax filing season is just a month away, we will strive to discover the final outcome of the heavy vehicle use tax. For those still doubtful of their heavy vehicle use tax understanding, we will put it simply: the HVUT is an excise tax paid by truck owners on an annual basis to counterbalance the roadway destruction typically caused by heavy vehicles. The IRS collects the 2290 tax from the numerous owner/operators, and then states certify the receipt of payment, and finally, the Federal Highway Administration reviews state procedures for complying with HVUT requirements. Everyone has a hand in ensuring the payment & compliance of the heavy vehicle use tax.

Now that the heavy vehicle use tax is better understood, we can identify the different outlets that HVUT revenue reaches. HVUT being a federal excise tax goes into the Federal Highway Trust Fund and is returned to the States for various highway programs in accordance with legislation. Each state is guaranteed that at least 90.5 percent of its contributions to the HTF will be properly appropriated back to the State. HVUT revenue used by the State & HTF finances a broad spectrum of transportation programs, which include: highway infrastructure, highway improvements, highway & bridge maintenance, highway law enforcement, safety programs, congestion relief projects, administrative cost, and local highway/congestion/safety-related programs.

These various transportation programs are created and funded to make road travel more convenient and efficient for all. The biggest hindrance to road travel is the thought of getting caught up in traffic congestion, well if properly implemented and funded, the aforementioned programs can significantly reduce the amount of road congestion we experience on a daily basis. Along with a reduction in road congestion, HVUT revenue reduces the number and severity of crashes, enhances the ability of emergency responders, lowers fuel and insurance costs, increases mobility, improves the efficient movement of goods, helps with economic development and strengthens the nation’s economic productivity.

With filing season about a month away, owners/operators should start preparing their paperwork and documents necessary for Form 2290. Etax2290 offers the highest quality e-filing service and trusted by many of the largest carriers and service providers in North America. If you have any questions, please contact us at our USA-based customer support center at 703-229-0326 or email us at support@tax2efile.com.