One question we often run into is “What is a logging vehicle for IRS Form 2290?” That is because when you file IRS Form 2290, you are asked to indicate whether your taxable vehicle is used for logging.
What is a Logging Vehicle For IRS Form 2290?
You might confuse the term “logging vehicle” with electronic logging devices. For Form 2290, however, logging vehicles are used to… well… haul logs. As in wood or other products from the forest.
How you classify your truck is essential because you can receive a reduced tax rate.
Check to see if your logging vehicle fits the IRS criteria to ensure you are paying the correct tax:
- Your truck is exclusively used to transport material harvest from a forested site, Or your vehicle is used exclusively to transport harvested materials from one forested site to another forested site. If your vehicle runs between forested sites, it can use public highways in between those sites and still be considered a logging vehicle.
- Your vehicle is registered in your base state (or any other state in which it is required to be registered) as a highway motor vehicle used exclusively for the transport of harvested materials from a forested site. Although the truck must be registered as a “logging vehicle” in your state, no special tag or license plate is required to identify the vehicle as a logging vehicle.
So, your vehicle should be registered as a logging vehicle, and it must be used to transport harvested forest materials only – but what does the IRS consider “harvested material”?
According to the IRS guideline, harvested products can include any raw timber taken from a forest, OR any timber that has been processed on the forested site for commercial processes, meaning the timber has already been sawed into lumber, chipped, or milled in some way.
If your vehicle fits these guidelines, then be sure to check the box “Used for Logging” when completing your HVUT Form 2290 to reap the rewards of a lower tax rate!
If you have questions about the status of your taxable vehicle, ask our team of experts. They know all of the IRS guidelines for logging, agriculture, exempt, suspended vehicles, and more! They are here to steer yours in the right direction!