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The Highway Trust Fund: Where my E-Form 2290 Taxes Go

July 2, 2013

A Message from Molly

As I was doing my research of all things E-Form 2290, I knew it would take a lot of work. When reading about the Highway Trust Fund, I wondered, “Does the person who wrote this even understand what it all means?!” It’s crazy complicated, but have no fear! You have me to help you through it! I have researched and sorted through all the mumbo jumbo and will be discussing only what you need to know about the Highway Trust Fund.

Where do my E-Form 2290 Taxes Go?

Your E-Form 2290 taxes go to the Highway Trust Fund. The Highway Trust Fund is the source of funds for the Federal-Aid Highway Program (FAHP).

The US DOT states that the Highway Trust Fund provides two benefits to the FAHP: It allows the program to “operate with authority through the 1974 Budget Act” and it provides the “opportunity for revenue aligned budget authority[1]”. What does that mean to me and you? I will break down these two statements for you:

  • The Highway Trust Fund allows the program to operate with authority through the 1974 Budget ActThe 1974 Budget Act is a United States federal law that governs the role of the Congress in the United States budgeting process[2]. So this roughly says that the government can budget the taxes collected.
  • The Highway Trust Fund provides the opportunity for revenue aligned budget authority2The revenue aligned budget authority is this really long US code about how tax funds (including the E-Form 2290 taxes) are to be allocated, and the general distribution of funds by state. So this says where the money goes.

There, I just condenced about one million pages of information for you!! You can thank me later…

 

How do I know if I need to file this tax?

Those who drive on American highways with a vehicle greater than or equal to 55,000 pounds need to file E-Form 2290 and pay taxes to the government to help finance the highways they use. Here is a nifty little chart that explains who has to contribute to the Highway Trust Fund and the rates that apply to them:

Types: Heavy highway vehicles (GVW greater than or equal to 55,000 lbs) that travel on American highways
Rates: $100, plus $22 for each 1,000 pounds (or fraction thereof) in excess of 55,000 lbs

The Highway Trust Fund has an additional source of E-Form 2290 revenue. Since October 30, 1984, the proceeds from fines and penalties imposed for violation of motor carrier safety requirements are also deposited in the Highway Account of the Highway Trust Fund.[3]

 

In short

In short, the Highway Trust Fund is the source of income to fund the roads you travel on in your trucks. If you travel on American highways in your heavy truck, you are responsible for filing and paying this tax. Those taxes are budgeted by congress, and given to the states for the highways.

 

Your input is welcomed

If this was helpful, please let me know! If you need more clarity, please let me know also! You can reach me at (909) 596 – 0050 from 9:00am – 5:00pm (California time), Monday – Friday. Your input helps me to give you the best service possible.

 

-By Molly Harris

 


[1] http://www.fhwa.dot.gov/reports/fifahiwy/fifahi05.htm

[2] http://en.wikipedia.org/wiki/Congressional_Budget_and_Impoundment_Control_Act_of_1974

[3] USC 9503(f)