Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 70-57

1970-1 C.B. 241

IRS Headnote

Oversized trucks required to be registered by the State are subject to the highway use tax even though they may only be used on public highways under special permit.

Full Text

Rev. Rul. 70-57

Advice has been requested whether the tax on use of highway motor vehicles imposed by section 4481 of the Internal Revenue Code of 1954 is applicable under the circumstances described below.

The motor vehicle statutes of certain States provide that all trucks and truck tractors, regardless of size, are required to be registered. In addition, the statutes make it a misdemeanor to operate a motor vehicle exceeding specified weight and size limitations on a highway under State jurisdiction except under the terms of a special permit. Generally, such special permits authorize the operation or movement of motor vehicles exceeding the specified size and weight limitations only for limited travel over particular highways.

The truck in the instant case exceeds the size and weight limitations specified by State law for general use of the public highways and is registered in a State where the motor vehicle statutes correspond to those described in the preceding paragraph. While the truck is used principally in off-highway transportation operations, it is also required to use the public highways in moving from one off-highway job site to another. By reason of its special design for use on the highways, it is a "highway motor vehicle," for purposes of the tax on highway use imposed by section 4481(a) of the Code. For purposes of moving the truck over the public highways, a special permit must be obtained from the State.

Section 4481(a) of the Code imposes a tax on the use of any highway motor vehicle that has a taxable gross weight of more than 26,000 pounds. Section 4481(b) provides that the tax is to be paid by the person in whose name the highway motor vehicle is, or is required to be, registered under the law of the State in which such vehicle is, or is required to be, registered.

Section 41.4481-1(a) of the Highway Motor Vehicle Use Tax Regulations provides that the tax is imposed on the use of a highway motor vehicle only if, at the time of such use of the vehicle, it is registered or required to be registered in the name of a person (whether or not such person is the person who uses the vehicle).

Section 41.4481-3(a) of the regulations provides that the term "registered," when used with reference to a highway motor vehicle, means registered under the law of any State or of the District of Columbia or required to be registered under the law of any State in which such highway motor vehicle is operated or situated or, in case the vehicle is operated or situated in the District of Columbia, under the law of the District of Columbia. However, a highway motor vehicle is not considered to be registered solely by reason of the fact that there has been issued a special permit for operation of the vehicle at particular times and under specified conditions.

The question presented is whether the vehicle in this case may be used on the public highways without incurring highway use tax liability, in view of the fact that it can only use the public highways under special permit.

In the factual situation described, the truck is "registered" under State law as that term is defined in the regulations, and meets all the other requirements for taxability. If an otherwise taxable vehicle is registered, or required to be registered under the laws of any State or the District of Columbia when it is used on the public highways, the fact that it can only use the highways under a special permit does not remove it from the application of the highway use tax. Accordingly, it is held that the tax imposed by section 4481(a) of the Code is applicable to the use of the truck on public highways, even though the vehicle may not be legally operated on the highways of the State without acquiring a special permit.