What are the Exemptions from Tax?
To be exempt from the tax, a highway motor vehicle must be used and actually operated by: – The Federal Government, – The District of Columbia, – A state or local government, – The American National Red Cross, – Non-profit volunteer fire department, ambulance association, or rescue squad, – An Indian tribal government but only if the vehicle’s use involves the exercise of an essential tribal government function, or – A mass transportation authority if it is created under a statute that gives it certain powers normally exercised by the state. Also exempt from the tax (not required to file Form 2290) are: – Qualified blood collector vehicles used by qualified blood collector organizations, and – Mobile machinery that meets the specifications for a chassis as described under specially designed mobile machinery for non-transportation functions later.
