[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: 26CFR41.4483-7]

[Page 24]
 
                       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. 41.4483-7  Reduction in tax for vehicles registered in a contiguous 
foreign country.

    (a) In general. In the case of a highway motor vehicle that, for any 
taxable period, has a base for registration purposes in a contiguous 
foreign country, the tax imposed by section 4481 for such taxable period 
shall be 75 percent of the tax that would be imposed but for this 
section. A highway motor vehicle has a base for registration purposes in 
a contiguous foreign country in any taxable period in which such vehicle 
is registered under the laws of a contiguous foreign country and such 
vehicle is not registered under the laws of any of the United States 
other than proportionately registered under a proration agreement (such 
as the International Registration Plan). A highway motor vehicle is not 
considered to have a base for registration purposes in a contiguous 
foreign country in any taxable period in which such vehicle is 
registered under the laws of any of the United States and such State is 
required under Sec. 41.6001-2(b) to receive proof of payment of the tax 
imposed by section 4481(a) with respect to such highway motor vehicle. 
For purposes of this paragraph (a), a highway motor vehicle that is 
allowed to operate in a State under a reciprocity agreement is not 
considered to be registered under the laws of that State.
    (b) Contiguous foreign country. The term ``contiguous foreign 
country'' means Canada or Mexico.

[T.D. 8159, 52 FR 33584, Sept. 4, 1987, as amended by T.D. 8177, 53 FR 
6626, Mar. 2, 1988]