Instructions For Form 720 - Quarterly Federal Excise Tax Return

Alternative Fuel

IRS Number

passenger on a commercial passenger ship that has berth

or stateroom accommodations for at least 17 passengers if

Liquefied petroleum gas (LPG)

112

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

“P Series” fuels

118

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

applies to passengers on any commercial ship that

Compressed natural gas (CNG)

120

transports passengers engaged in gambling aboard the ship

Liquefied hydrogen

121

beyond the territorial waters of the United States. Enter the

number of passengers for the quarter on the line for IRS

Any liquid fuel derived from coal (including

122

No. 29.

peat) through the Fischer-Tropsch process

Liquid fuel derived from biomass

123

Other Excise Tax

Liquefied natural gas (LNG)

124

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

LPG includes propane, butane, pentane, or mixtures of

obligations issued during the quarter, enter the principal

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

amount of the obligation multiplied by the number of

equivalent (126.67 cubic feet).

calendar years (or portion thereof) during the period

beginning on the issue date and ending on the maturity date

Retail Tax

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

Do not include the excise tax on coal in the sales

of each unit. The tax applies to:

•

price when determining which tax rate to use.

Truck chassis and bodies except truck chassis and bodies

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

The sales price of a vehicle includes the sales price of

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

certain related parts and accessories sold on or in

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

connection with the sale of the vehicle.

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

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

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

the quarter on the line for IRS No. 33.

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

price of less than $12.50 per ton.

Gross vehicle weight. The gross vehicle weight means

the maximum total weight of a loaded vehicle. Generally,

this maximum total weight is the gross vehicle weight rating

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

provided by the manufacturer or determined by the seller of

imposed on taxable tires sold by the manufacturer,

the completed article. The seller’s gross vehicle weight

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

rating must be determined for excise tax purposes on the

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

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

basis of the strength of the chassis frame and the axle

capacity and placement. The seller may not take into

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

account any readily attachable components (such as tires or

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

rim assemblies) in determining the gross vehicle weight.

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

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

Rate (for each 10

information.

pounds of the maximum

IRS No.

Taxable Tire Category

The following four classifications of truck body types meet

rated load capacity over

the suitable for use standard and will be excluded from the

3,500 pounds)

retail excise tax.

Taxable tires other than

•

Platform truck bodies 21 feet or less in length.

108

biasply or super single

$.0945

•

Dry freight and refrigerated truck van bodies 24 feet or

tires

less in length.

•

Taxable tires, biasply or

Dump truck bodies with load capacities of 8 cubic yards or

super single tires (other

109

$.04725

less.

than super single tires

•

Refuse packer truck bodies with load capacities of 20

designed for steering)

cubic yards or less.

Taxable tires, super single

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

113

$.0945

tires designed for steering

page 832 of Internal Revenue Bulletin 2005-14 at

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

A taxable tire is any tire of the type used on highway

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

vehicles if wholly or partially made of rubber and if marked

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

according to federal regulations for highway use. A biasply

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

tire is a pneumatic tire on which the ply cords that extend to

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

the beads are laid at alternate angles substantially less than

90 degrees to the centerline of the tread. A super single tire

Ship Passenger Tax

is a tire greater than 13 inches in cross section width

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

designed to replace 2 tires in a dual fitment, but does not

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

include any tire designed for steering.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2008 Page 5

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