TAX FILE: When a pickup is a tractor

Sept. 1, 2004
The 12% tax applies to trucks with a gross vehicle weight rating exceeding 33,000 lb., as well as to all tractors. For years, there has been uncertainty as to whether large pickup trucks that are modified to tow long trailers are taxable as tractors or nontaxable trucks. Now the IRS has ruled that one type of vehicle is taxable. In Revenue Ruling 2004-80, issued July 28, the IRS described a four-door

The 12% “retail” tax applies to trucks with a gross vehicle weight rating exceeding 33,000 lb., as well as to all tractors. For years, there has been uncertainty as to whether large pickup trucks that are modified to tow long trailers are taxable as tractors or nontaxable trucks.

Now the IRS has ruled that one type of vehicle is taxable. In Revenue Ruling 2004-80, issued July 28, the IRS described a four-door crew-cab pickup outfitted with “certain luxury features.” The cab has an electric trailer brake control and three types of hitches. When towing a trailer, the only onboard carrying capacity is a pair of storage boxes behind the cab. The IRS ruled that these modifications make the vehicle a tractor and, consequently, subject to the 12% tax.

About the Author

KEN SIMONSON

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Boost truck leasing profits with telematics insights! Reduce maintenance costs, improve uptime, and strengthen customer relationships. Learn how data drives success.
This free guide outlines simple steps for hiring and onboarding commercial drivers while ensuring that you meet Regulation Part 391 and maintain fully compliant driver qualification...
Ready to boost fleet efficiency by up to 50%? Learn how AI-powered dispatch and next-gen tech are transforming TMS workflows, improving driver planning, and streamlining operations...
Gain a strategic edge in today’s evolving fleet landscape. Join us to explore how fuel cards are helping fleet managers cut costs, enhance control, and prepare for an electrified...