Example (2). On July 1, 1961, X has registered in his name a highway motor vehicle having a taxable gross weight of 30,000 pounds. The vehicle is in "dead storage" until August 10, 1961, at which time X starts using the vehicle on the public highways in carrying on his trucking business. On August 10, 1961, the vehicle is still registered in X's name. Since the first taxable use of this highway motor vehicle during the taxable period occurred on August 10, 1961, X is required to pay a tax of $82.50 (30 x $3.00 xor. if computed by alternative method, 30 x 25 cents x 11) for such taxable period.

[T.D. 6743, 29 F.R. 7930, June 23, 1964]
§ 41.4481-2 Persons liable for tax.

(a) In general. (1) The person in whose name any highway motor vehicle is registered at the time of the first taxable use of such vehicle in any taxable period is liable for the tax on the use of the vehicle for such taxable period. This liability is for the total tax even though such person elects to pay the tax in installments. If thereafter in the same taxable period a taxable use of such vehicle is made while it is registered in the name of another person, such other person is also liable for the tax on the use of such vehicle for such taxable period to the extent that the tax or an installment payment of the tax has not previously been paid. In case more than one person is liable for the tax on the use of a particular highway motor vehicle for a taxable period, the liability of all persons for such tax is satisfied to the extent that the tax is paid by any person liable for the tax.

(2) The application of this paragraph may be illustrated by the following example:

Example. In the taxable period beginning July 1, 1961, the first taxable use of a particular highway motor vehicle having a taxable gross weight of 40,000 pounds occurs on July 10, 1961, at which time the vehicle is registered in the name of Y. On September 1, 1961, Y sells the vehicle to X who registers and uses the vehicle before the end of such taxable period. Since the vehicle was registered in the name of Y at the time of its first taxable use, Y is liable for the total tax of $120 (40 x $3) imposed on the use of the vehicle for the taxable period. X is also liable for $120 tax on any part thereof, but only to the extent that Y does not pay it. To the extent that either X or Y pays the tax the other party is relieved of such liability.

(b) Evidence of prior use of secondhand vehicle. Every person who, at any time in the taxable period, acquires and has registered in his name a secondhand

highway motor vehicle shall obtain and keep as a part of his records evidence, which he believes to be true, showing whether there was or was not a taxable use of such vehicle at any time in such taxable period prior to the time when the vehicle was registered in his name. The evidence may take the form of a written statement, signed and dated by the person from whom the vehicle was acquired, showing whether there was or was not a prior taxable use of the vehicle in the taxable period. If the vehicle is acquired from a dealer in highway motor vehicles, the statement may be obtained from such dealer or from the person from whom the dealer acquired such vehicle. If evidence is not obtained showing whether there was or was not a prior taxable use of such vehicle, such person shall keep as a part of his records a written statement of the reason why he was unable to obtain such evidence.

(c) Cross references. (1) For provisions relating to interest on underpayments of tax, see § 301.6601-1 of this chapter (Regulations on Procedure and

Administration).

(2) For records required to be kept, see § 41.6001-1.

(3) For rules applicable to installment payment of tax for highway use tax liability, see § 41.6156-1.

(4) For rules applicable to time of filing returns, see § 41.6071(a)-1. [T.D. 6743, 29 F.R. 7930, June 23, 1964] § 41.4481-3 Registration.

(a) For purposes of the regulations in this part, the term "registered" when used with reference to a highway motor vehicle means:

(1) Registered under the law of any State or Territory of the United States or of the District of Columbia, or

(2) Required to be registered under the law of any State or Territory of the United States in which such highway motor vehicle is operated or situated or, in case the vehicle is operated or situated in th District of Columbia, under the law of the District of Columbia. Any highway motor vehicle which is operated under a dealer's tag, license, or permit is considered to be registered in the name of such dealer. 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.

vehicles of the same type as such highway motor vehicle; and (3) the weight of the maximum load customarily carried on highway motor vehicles of the same type as such highway motor vehicle and on any one or more trailers or semitrailers customarily used in combination with highway motor vehicles of the same type as such highway motor vehicle.

(b) Meaning of terms. For purposes of the schedule of taxable gross weights prescribed in paragraph (c) of this section

(1) The term "actual unloaded weight" means the empty (or tare) weight of the truck, truck-tractor, or bus, fully equipped for service.

(2) The term "fully equipped for service"

(i) In the case of trucks and trucktractors, includes body (whether or not designed and adapted primarily for transporting cargo, as for example, concrete mixers); all accessories; all equipment attached to or carried on such truck or truck-tractor for use in connection with the movement of the vehicle by means of its own motor or for use in the maintenance of the vehicle; and a full complement of lubricants, fuel, and water. The term does not include driver, any equipment, not including body) attached to or carried on the vehicle for use in handling, protecting, or preserving cargo; or any special equipment (such as an air compressor, crane, specialized oilfield machinery, etc.) mounted on the vehicle for use on construction jobs, in oilfield operations, etc.,

(ii) In the case of buses, for taxable periods beginning before July 1, 1964, includes body; all accessories; all equipment attached to or carried on such bus for use in connection with the movement of the vehicle by means of its own motor or for use in the maintenance of the vehicle; and a full compliment of lubricants, fuel, and water. The term does not include driver or any equipment (not including body) attached to or carried on the vehicle for the accommodation of passengers or others (such as air-conditioning equipment and sanitation facilities, etc.), and

(iii) In the case of buses, for taxable periods beginning on or after July 1, 1964, includes body; all accessories; all equipment attached to or carried on such bus for use in connection with the movement of the vehicle by means of its own motor, for use in the maintenance of the vehicle, or for the accommodation of passengers

3. Buses: Actual unloaded weight of vehicle plus 150 pounds for each unit of seating capacity provided for passengers and driver. Any highway motor vehicle which falls in one of the categories shown in such schedule shall be considered, for purposes of the regulations in this part, to have the taxable gross weight assigned to such category. Any highway motor vehicle which does not fall in one of the categories shown in such schedule shall be considered, for purposes of the regulations in this part, to have a taxable gross weight of 26,000 pounds or less.

(d) Schedule of taxable gross weights for periods after June 30, 1969. The following schedule of taxable gross weights, based on the sum of the weights referred

to in paragraph (a) of this section, is hereby prescribed for taxable periods beginning on or after July 1, 1969. Any highway motor vehicle which falls in one of the categories shown in the following schedule shall be considered, for purposes of the regulations in this part, to have the taxable gross weight assigned to such category. Any highway motor vehicle which does not fall in one of the categories shown in the following schedule shall be considered, for purposes of the regulations in this part, to have a taxable gross weight of 26,000 pounds or less.

(b) 3 axled truck equipped for use as a single unit with actual unloaded weight of 13,000 pounds or more and less than 16,000 pounds (c) 3 axled truck equipped for use as a single unit with actual unloaded weight of 16,000 pounds or more..

(d) 4 axled truck equipped for use as a single unit with actual unloaded weight of less than 22,000 pounds (e) 4 axled truck equipped for use as a single unit with actual unloaded weight of 22,000 pounds or more and less than 30,000 pounds

(f) 4 axled truck equipped for use as a single unit with actual unloaded weight of 30,000 pounds

or more--

(g) More

27,000

76,000

55, 000

68,000

80,000

than 4 axled truck equipped for use as a single unit------ 2.5 times actual unloaded

(u) More than 4 axled truck equipped for use in combinations--4.5 times actual unloaded weight. 4. Buses: Actual unloaded weight of vehicle plus 150 pounds for each unit of seating capacity provided for passengers and driver.

(Secs. 4482 (b), 70 Stat. 390; 26 U.S.C. 4482 (b)) [T.D. 6216, 21 F.R. 9645, Dec. 6, 1956, as amended by T.D. 6743, 29 F.R. 7931, June 23, 1964; T.D. 7011, 34 F.R. 7448, May 8, 1969] § 41.4482 (c) Statutory provisions; definitions; other definitions; State, year, and use and taxable period. SEC. 4482 Definitions. *

(c) Other definitions. For purposes of this subchapter

(1) State. The term "State" means State, a Territory of the United States, and the District of Columbia.

(2) Year. The term "year" means the one-year period beginning on July 1. (3) Use. The term "use" means use in the United States on the public highways.

(4) Taxable period. The term "taxable period" means any year beginning before July 1, 1972, and the period which begins on July 1, 1972, and ends at the close of September 30, 1972.

[Sec. 4482 (c) as added by sec. 206(a), Highway Revenue Act 1956 (70 Stat. 390) and as

amended by sec. 203(b) (2) (C) Federal-Aid Highway Act 1961 (75 Stat. 125)]

[T.D. 6216, 21 F.R. 9645, Dec. 6, 1956, as amended by T.D. 6743, 29 F.R. 7931, June 23, 1964]

§ 41.4482 (c)-1 Definition of State, taxable period and use.

(a) State. The term "State", as used in the regulations in this part, means any one of the several States, the Territories of Alaska and Hawaii prior to their admission into the Union as States, or the District of Columbia.

(b) Taxable period. The term "taxable period", as used in the regulations in this part, means (1) any one-year period beginning with July 1 and ending with the following June 30 during the period after June 30, 1956, and before July 1, 1972, and (2) the three-month period beginning with July 1, 1972, and ending with September 30, 1972.

(c) Use. The term "use", as used in the regulations in this part with reference to a highway motor vehicle, means the use of the highway motor vehicle on the public highways in the United States, that is, operation of the vehicle, by means of its own motor, on any roadway (whether a Federal highway, State highway, city street, or otherwise) in the United States which is not a private roadway. Thus, for purposes of the tax, there is no use of a highway motor vehicle while the vehicle is in "dead storage". The term "use" does not include operation of a new highway motor vehicle on a public highway in the United States if such operation is merely for the purpose of transporting the vehicle from the point of manufacture or assembly to the consumer, whether direct or with intermediate deliveries to such points as are involved in the distribution process. For example, operation of a new vehicle for the purpose of delivering it from the factory to a branch establishment of the manufacturer, or from the factory or branch establishment to a dealer, distributor, or consumer, does not constitute use of the vehicle within the meaning of the regulations in this part; likewise, the further operation of the vehicle by a dealer or distributor for the purpose of delivering the vehicle to a consumer does not constitute use of the vehicle. Similarly, the operation of a secondhand highway motor vehicle by a dealer or distributor for the purpose of delivering the vehicle to a purchaser does not constitute use of the vehicle within the

50-058-71

meaning of the regulations in this part. Furthermore, the term "use" does not include operation of a new or secondhand highway motor vehicle, if such operation is exclusively for the purpose of demonstration of the vehicle by a dealer in, or distributor of, new or secondhand highway motor vehicles. Operation of a highway motor vehicle on a private roadway, or other private property, does not constitute use of the vehicle within the meaning of the regulations in this part. [T.D. 6216, 21 F.R. 9645, Dec. 6, 1956, as amended by T.D. 6518, 25 F.R. 13133, Dec. 21, 1960; T.D. 6743, 29 F.R. 7931, June 23, 1964] § 41.4483 Statutory

emptions.

provisions;

ex

SEC. 4483. Exemptions-(a) State and local governmental exemption. Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed by section 4481 on the use of any highway motor vehicle by any State or any political subdivision of a State.

(b) Exemption for United States. The Secretary may authorize exemption from the tax imposed by section 4481 as to the use by the United States of any particular highway motor vehicle, or class of highway motor vehicles, if he determines that the imposition of such tax with respect to such use will cause substantial burden or expense which can be avoided by granting tax exemption and that full benefit of such exemption, if granted, will accrue to the United States.

(c) Certain transit-type buses. Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed by section 4481 on the use of any bus which is of the transit type (rather than of the intercity type) by a person who, for the last 3 months of the preceding year (or for such other period as the Secretary or his delegate may by regulations prescribe for purposes of this subsection), met the 60-percent passenger fare revenue test set forth in section 6421 (b) (2) as applied to the period prescribed for purposes of this subsection.

[Sec. 4483 as added by sec. 206 (a), Highway Revenue Act 1956]

NOTE: An exemption appearing at 21 F. R. 9651, Dec. 6, 1956, issued by the Acting Secretary of the Treasury, provides as follows:

"By virtue of the authority vested in me by section 4483 (b) of the Internal Revenue Code of 1954 (70 Stat. 391), as added by section 206 (a) of the Highway Revenue Act of 1956, exemption from the tax imposed by section 4481 of the Internal Revenue Code of 1954 (70 Stat. 390), as added by section 206 (a) of the Highway Revenue Act of 1956, is hereby authorized as to the use by the United States on or after July 1, 1956, of any highway motor vehicle on the public highways in the United States, whether or not such