10-4 Magazine July 2024

10-4 Magazine / July 2024 71 As of mid-2024, the U.S. economy is showing signs of both resilience and challenges. The economic growth rate is projected to slow down compared to 2023, with the real GDP expected to grow at a rate of 0.7% for the year. This predicted deceleration is partly due to the effects of previous monetary policies and the fading of post-pandemic economic boosts. Inflation, which has been a significant concern, shows signs of moderating. The Federal Reserve’s interest rate hikes have likely peaked, with the Federal Funds rate expected to hold steady at 5.25%-5.5% until mid-2024, followed by gradual rate cuts towards the end of the year. Consumer spending, a major component of GDP, is now experiencing a mixed outlook. While consumer confidence has improved somewhat, concerns about inflation and debt levels continue to persist. Households have been using up savings accumulated during the pandemic and are taking on more debt, which has sustained spending, but may not be sustainable over the long-term. There is also a notable shift in spending patterns, with more emphasis on essential items and services like travel and home improvements. Labor markets remain strong, with low unemployment rates continuing to support household incomes and spending. However, there are signs of stress, such as the resumption of student loan payments and increasing credit card delinquencies among certain demographics. Geopolitical factors, such as ongoing conflicts in Europe and the Middle East, are adding uncertainty to the economic outlook, as well. These tensions are affecting global trade and commodity prices, particularly oil, which in turn impacts inflation and economic stability. Overall, while the U.S. economy is navigating through a period of slower growth and inflationary pressures, it remains supported by strong labor markets and resilient consumer spending. The outlook suggests cautious optimism, with some potential headwinds from geopolitical (this is an election year) and fiscal challenges. Remember, if you want the current state of things to stay the same, then keep the current administration in power – otherwise, change administrations. Now, let’s move on to discussing the Heavy Vehicle Use Tax (Form 2290). Filing taxes on your vehicles is key to keeping your fleet in compliance. One of those taxes is the federal Heavy Vehicle Use Tax (HVUT). The new HVUT tax year begins July 1. Taxes for 2024-2025 are due by August 31, 2024. Be ready to file Form 2290 and pay the tax if your company has vehicles that are used on the highway, with a taxable gross weight of 55,000 pounds or more, and registered in the US, Canada, or Mexico. Which vehicles are subject to the tax? HVUT applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more (including trucks, tractors, and buses). For this program, “taxable gross weight” means the empty gross weight of the vehicle, plus the empty weights of any attached trailers, plus the heaviest weight of the loads the vehicle and/or trailers will carry during that tax period. The tax applies regardless of whether the trucks operate interstate or intrastate. A “highway motor ve - hicle” includes any self-pro- pelled vehicle designed to carry a load over public high - ways, whether or not it is also designed to perform other functions. The tax year for HVUT starts on July 1 and goes through June 30 of the following year. For vehicles registered and operating in July, you must file Form 2290 and pay the tax by August 31. But there’s more. Many HVUT filers are subject to additional off-cycle HVUT filings throughout the year. Adding a truck. If you place an additional taxable truck registered in your name on the road during any month other than July, you are liable for the tax. The amount is prorated for the months during which it was in service. File Form 2290 for these trucks by the last day of the month following the month the vehicle was first used on public highways. Weight increases. Returns must be filed when the taxable gross weight of a vehicle increases during the tax period. Suspended vehicles operated over miles. A return must be filed if a suspension was originally filed because the vehicle was expected to operate 5,000 or fewer miles during the period, but then exceeded that amount prior to the end of the tax period. How much will this cost? Tax on a 55,000-pound vehicle starts at $100 and increases by $22 for every 1,000 pounds over 55,000 pounds, so a 60,000-pound vehicle would cost $210. However, vehicles weighing 75,000 pounds or more max out at $550 in taxes. If you are puzzled by a regulatory question or issue, let our renowned experts provide the answers and get your business on track to full compliance! If you expect to operate your vehicle 5,000 miles or less during the reporting period (7,500 miles or less for agricultural vehicles), no tax payment is required. However, you still must file a Form 2290 and Schedule 1, and declare these vehicles as suspended from the tax. If you claim a suspension but then operate the vehicle beyond the 5,000 / 7,500 miles limit, you must file an amendment and pay the tax. Key to remember: carriers operating vehicles weighing 55,000 pounds or more must file heavy vehicle use tax with the IRS. File by August 31 each year and whenever you add a new vehicle. Got questions? Call us at (800) 805-0040 or visit www.ntassoc.com . n THE ECONOMY & MORE Wayne’s World: By Wayne Schooling