[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR41.4481-2]

[Page 15-16]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 41_EXCISE TAX ON USE OF CERTAIN HIGHWAY MOTOR VEHICLES--Table of Contents
 
         Subpart B_Tax on Use of Certain Highway Motor Vehicles
 
Sec. 41.4481-2  Persons liable for tax.

    (a) In general. (1)(i) A person is liable for the tax imposed by 
section 4481 with respect to the use of a highway motor vehicle in a 
taxable period if the vehicle is registered in the person's name--
    (A) At the time of the first use of the vehicle in the taxable 
period;
    (B) In the case of a vehicle under a suspension of tax described in 
Sec. 41.4483-3(a), at the time the use on the public highways during 
the taxable period exceeds 5,000 miles (7,500 miles for agricultural 
vehicles);
    (C) At the time that an increase in the taxable gross weight of the 
vehicle results in an additional tax liability (as computed under Sec. 
41.4481-1(c)(3)) if the increase occurs after the month in which the 
vehicle was first used in the taxable period; or
    (D) At the time of any use during the taxable period that is after 
the first use during the period, but only to the extent that the tax or 
any installment payment of the tax has not previously been paid.
    (ii) In any case in which more than one person is liable for the tax 
for a taxable period, the liability of all persons is satisfied to the 
extent that the tax is paid by any person liable for the tax.
    (2) The application of paragraph (a)(1) of this section may be 
illustrated by the following example:

    Example. In the taxable period beginning July 1, 1985, the first 
taxable use of a particular highway motor vehicle having a taxable gross 
weight of 60,000 pounds occurs on July 10, 1985, at which time the 
vehicle is registered in the name of Y. On September 1, 1985, Y sells 
the vehicle to X who registers and uses the vehicle before the end of 
such taxable period. Since the vehicle was registered in the name of Y 
at the time of its first taxable use, Y is liable for the total tax of 
$210 ($100+(5x$22)) imposed on the use of the vehicle for the taxable 
period. X is also liable for $210 tax or any part thereof, but only to 
the extent that Y does not pay it. To the extent that either X or Y pays 
the tax the other party is relieved of such liability.
    (b) Evidence of prior use of second-hand vehicle. Every person who, 
at any time in the taxable period, acquires and has registered in his 
name a secondhand highway motor vehicle shall obtain and keep as a part 
of his records evidence, which he believes to be true, showing whether 
there was or was not a taxable use of such vehicle at any time in such 
taxable period prior to the time when the vehicle was registered in his 
name. Such person shall also obtain and keep as evidence a statement 
from the transferor as to whether there was in effect, at the time the 
vehicle was acquired, a suspension under Sec. 41.4483-3(a) of the tax 
imposed by section 4481(a). The evidence may take the form of a written 
statement, signed and dated by the person from whom the vehicle was 
acquired, showing whether there was or was not a prior taxable use of 
the vehicle and whether there was a suspension of tax in the taxable 
period. If the vehicle is acquired from a dealer in highway motor 
vehicles, the statement may be obtained from such dealer or

[[Page 16]]

from the person from whom the dealer acquired such vehicle. If evidence 
is not obtained showing whether there was or was not a prior taxable use 
of such vehicle and whether there was a suspension of tax in the taxable 
period, such person shall keep as a part of his records a written 
statement of the reason why he was unable to obtain such evidence.
    (c) Cross references. (1) For provisions relating to interest on 
underpayments of tax, see Sec. 301.6601-1 of this chapter (Regulations 
on Procedure and Administration).
    (2) For records required to be kept, see Sec. 41.6001-1.
    (3) For rules applicable to installment payment of tax for highway 
use tax liability, see Sec. 41.6156-1.
    (4) For rules applicable to time of filing returns, see Sec. 
41.6071(a)-1.

[T.D. 6743, 29 FR 7930, June 23, 1964, as amended by T.D. 8027, 50 FR 
21247, May 23, 1985; T.D. 8879, 65 FR 17153, Mar. 31, 2000]