Instructions For Form 720 - Quarterly Federal Excise Tax Return

62(a). If you are liable for the gasoline tax on events other

account any readily attachable components (such as tires or

than removal at the terminal rack, report these gallons on

rim assemblies) in determining the gross vehicle weight.

line 62(b). If you are liable for the gasoline tax because you

See Regulations section 145.4051-1(e)(3) for more

have blended alcohol with taxed gasoline outside of the bulk

information.

transfer/terminal system, report these gallons of alcohol on

The following four classifications of truck body types meet

line 62(c). If you report gallons on line 62(c), do not report

the suitable for use standard and will be excluded from the

those gallons on line 62(b).

retail excise tax.

•

Multiply the total number of gallons subject to tax on lines

Platform truck bodies 21 feet or less in length.

(a), (b), and (c) by $.184. Combine the tax for lines (a), (b),

•

Dry freight and refrigerated truck van bodies 24 feet or

and (c), and make one entry in the tax column.

less in length.

•

Also see Schedule T — Two-Party Exchange Information

Dump truck bodies with load capacities of 8 cubic yards or

Reporting on page 9 if applicable.

less.

•

Refuse packer truck bodies with load capacities of 20

Aviation gasoline (IRS No. 14). Aviation gasoline is taxed

cubic yards or less.

at the rate shown on Form 720. The second tax rate ($.044)

applies after December 14, 2007, only if the current tax rate

For more information, see Rev. Proc. 2005-19, which is on

($.194) is not extended.

page 832 of Internal Revenue Bulletin 2005-14 at

gov/pub/irs-irbs/irb05-14.pdf.

Alternative fuel (IRS Nos. 112, 118, and 120 – 124).

Alternative fuel is any liquid other than gas oil, fuel oil, or

Section 4051(d) tire credit. A tax credit may be taken

any product taxable under Internal Revenue Code section

equal to the amount of tax that has been imposed on each

4081. You are liable for tax on alternative fuel delivered into

tire that is sold on or in connection with the first retail sale of

the fuel supply tank of a motor vehicle or motorboat, or on

a taxable vehicle reported on IRS No. 33. Claim the section

certain bulk sales. Report the tax on the line for the IRS No.

4051(d) tire credit on Schedule C, line 15a.

listed below.

Ship Passenger Tax

Alternative Fuel

IRS Number

Transportation by water (IRS No. 29). A tax is imposed

Liquefied petroleum gas (LPG)

112

on the operator of commercial ships. The tax is $3 for each

passenger on a commercial passenger ship that has berth

“P Series” fuels

118

or stateroom accommodations for at least 17 passengers if

Compressed natural gas (CNG)

120

the trip is over 1 or more nights. A voyage extends “over 1

or more nights” if it lasts longer than 24 hours. The tax also

Liquefied hydrogen

121

applies to passengers on any commercial ship that

Any liquid fuel derived from coal (including

122

transports passengers engaged in gambling aboard the ship

peat) through the Fischer-Tropsch process

beyond the territorial waters of the United States. Enter the

Liquid hydrocarbons derived from biomass

123

number of passengers for the quarter on the line for IRS

No. 29.

Liquefied natural gas (LNG)

124

Other Excise Tax

LPG includes propane, butane, pentane, or mixtures of

Obligations not in registered form (IRS No. 31). For

those gases. CNG is taxed at $.183 per gasoline gallon

obligations issued during the quarter, enter the principal

equivalent (126.67 cubic feet).

amount of the obligation multiplied by the number of

calendar years (or portion thereof) during the period

Retail Tax

beginning on the issue date and ending on the maturity date

on the line for IRS No. 31.

Truck, trailer, and semitrailer chassis and

bodies, and tractors (IRS No. 33)

Manufacturers Taxes

The tax is 12% (.12) of the sales price on the first retail sale

of each unit. The tax applies to:

Do not include the excise tax on coal in the sales

•

Truck chassis and bodies except truck chassis and bodies

price when determining which tax rate to use.

suitable for use with a vehicle with a gross vehicle weight

CAUTION

(GVW) of 33,000 pounds or less,

•

Trailer and semitrailer chassis and bodies except trailer

Underground mined coal (IRS Nos. 36 and 37). The tax

and semitrailer chassis and bodies suitable for use with a

on underground mined coal is the lower of $1.10 per ton or

vehicle with a GVW of 26,000 pounds or less, and

4.4% (.044) of the sales price. Enter on the line for IRS No.

•

Tractors of the kind chiefly used for highway

36 the number of tons of underground mined coal sold at

transportation in combination with a trailer or semitrailer,

$25 or more per ton. Enter on the line for IRS No. 37 the

except tractors that have a gross vehicle weight of 19,500

total sales price for all sales of underground mined coal sold

pounds or less and a gross combined weight of 33,000

at a selling price of less than $25 per ton.

pounds or less. Generally, gross combined weight means

the weight of a tractor and the weight of its trailer(s).

Surface mined coal (IRS Nos. 38 and 39). The tax on

surface mined coal is the lower of $.55 per ton or 4.4%

The sales price of a vehicle includes the sales price of

(.044) of the sales price. Enter on the line for IRS No. 38

certain related parts and accessories sold on or in

the number of tons of surface mined coal sold at $12.50 or

connection with the sale of the vehicle.

more per ton. Enter on the line for IRS No. 39 the total sales

price for all sales of surface mined coal sold at a selling

Figure the tax for each vehicle sold and enter the total for

price of less than $12.50 per ton.

the quarter on the line for IRS No. 33.

Gross vehicle weight. The gross vehicle weight means

Taxable tires (IRS Nos. 108, 109, and 113). A tax is

the maximum total weight of a loaded vehicle. Generally,

imposed on taxable tires sold by the manufacturer,

this maximum total weight is the gross vehicle weight rating

producer, or importer at the rate of $.0945 ($.04725 in the

provided by the manufacturer or determined by the seller of

case of a biasply tire or super single tire) for each 10 pounds

the completed article. The seller’s gross vehicle weight

of the maximum rated load capacity over 3,500 pounds.

rating must be determined for excise tax purposes on the

Figure the tax for each tire sold in each category as shown

basis of the strength of the chassis frame and the axle

in the following chart and enter the total for the quarter on

capacity and placement. The seller may not take into

the line for IRS No. 108, 109, or 113.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2007 Page 5

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