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taxmap/pubs/p510-042.htm#TXMP4055d010 Gas Guzzler Tax

Gas-Guzzler Tax

Limousines with a gross unloaded vehicle weight of more than 6,000 pounds are no longer subject to the gas guzzler tax, effective for sales, uses, or leases after September 30, 2005.

Tax is imposed on the sale by the manufacturer of automobiles of a model type that has a fuel economy standard as measured by the Environmental Protection Agency (EPA) of less than 22.5 miles per gallon. If you import an automobile for personal use, you may be liable for this tax. Figure the tax on Form 6197, as discussed later. The tax rate is based on fuel economy rating. The tax rates for the gas guzzler tax are shown on Form 6197.

A person that lengthens an existing automobile is the manufacturer of an automobile.

taxmap/pubs/p510-042.htm#TXMP6724baa2 Automobiles.

An automobile (including limousines) means any four-wheeled vehicle that is:

• Rated at an unloaded gross vehicle weight of 6,000 pounds or less,
• Propelled by an engine powered by gasoline or diesel fuel, and
• Intended for use mainly on public streets, roads, and highways.

taxmap/pubs/p510-042.htm#TXMP5b600f2f Vehicles not subject to tax.

For the gas guzzler tax, the following vehicles are not considered automobiles.

1. Limousines with a gross unloaded vehicle weight of more than 6,000 pounds.
2. Vehicles operated exclusively on a rail or rails.
3. Vehicles sold for use and used primarily:
   1. As ambulances or combination ambulance-hearses,
   2. For police or other law enforcement purposes by federal, state, or local governments, or
   3. For firefighting purposes.
4. Vehicles treated under 49 USC 32901 (1978) as non-passenger automobiles. This includes limousines manufactured primarily to transport more than 10 persons.

The manufacturer can sell a vehicle described in item (3) tax free only when the sale is made directly to a purchaser for the described emergency use and the manufacturer and purchaser (other than a state or local government) are registered.

Treat an Indian tribal government as a state only if the police or other law enforcement purposes are an essential tribal government function.

taxmap/pubs/p510-042.htm#TXMP162a3221 Model type.

Model type is a particular class of automobile as determined by EPA regulations.

taxmap/pubs/p510-042.htm#TXMP08a4bb50 Fuel economy.

Fuel economy is the average number of miles an automobile travels on a gallon of gasoline (or diesel fuel) rounded to the nearest 0.1 mile as figured by the EPA.

taxmap/pubs/p510-042.htm#TXMP54733a16 Imported automobiles.

The tax also applies to automobiles that do not have a prototype-based fuel economy rating assigned by the EPA. An automobile imported into the United States without a certificate of conformity to United States emission standards and which has no assigned fuel economy rating must be either:

• Converted by installation of emission controls to conform in all material respects to an automobile already certified for sale in the United States, or
• Modified by installation of emission control components and individually tested to demonstrate emission compliance.

An imported automobile that has been converted to conform to an automobile already certified for sale in the United States may use the fuel economy rating assigned to that certified automobile.

A fuel economy rating is not generally available for modified imported automobiles because the EPA does not require a highway fuel economy test on them. A separate highway fuel economy test would be required to devise a fuel economy rating (otherwise the automobile is presumed to fall within the lowest fuel economy rating category).

For more information about fuel economy ratings for imported automobiles, see Revenue Ruling 86-20 and Revenue Procedure 86-9 in Cumulative Bulletin 1986-1, and Revenue Procedure 87-10 in Cumulative Bulletin 1987-1.

taxmap/pubs/p510-042.htm#TXMP5426e6be Exemptions.

No one is exempt from the gas guzzler tax, including the federal government, state and local governments, and nonprofit educational organizations. However, see Vehicles not subject to tax, earlier.

taxmap/pubs/p510-042.htm#TXMP2d1055cb Form 6197.

Use Form 6197 to figure your tax liability for each quarter. Attach Form 6197 to your Form 720 for the quarter. See the instructions for Form 6197 for more information and the one-time filing rules.

taxmap/pubs/p510-042.htm#TXMP27002665 Credit or refund.

If the manufacturer paid the tax on a vehicle that is used or resold for an emergency use (see item (3) under Vehicles not subject to tax), the manufacturer can claim a credit or refund. For information about how to file for credits or refunds, see the Instructions for Form 720 or Form 8849.

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