Federal Gas Guzzler Tax

Gas Guzzler Tax
Form 6197 (Rev. October 2005)
Form

6197

Gas Guzzler Tax
OMB No. 1545-0242

(Rev. October 2005)

䊳

Department of the Treasury
Internal Revenue Service

See instructions on back.
䊳

Attach to Form 720.

Name (as shown on Form 720)

Employer identification number

Computation of Tax

If the fuel economy (mpg) of
the automobile model type is:
(a)
At
least

(b)
But
less
than

(c)
Tax
rate

1

22.5

—

$0

2

21.5

22.5

3

20.5

4
5

(d)
Number
of cars
sold

(e)
Tax due
(multiply
column (c) by
column (d))

Line number

Line number

Part I

Quarter ending

If the fuel economy (mpg) of
the automobile model type is:
(a)
At
least

(b)
But
less
than

(c)
Tax
rate

7

16.5

17.5

$3,000

1,000

8

15.5

16.5

3,700

21.5

1,300

9

14.5

15.5

4,500

19.5

20.5

1,700

10

13.5

14.5

5,400

18.5

19.5

2,100

11

12.5

13.5

6,400

(e)
Tax due
(multiply
column (c) by
column (d))

(d)
Number
of cars
sold

—
6 17.5
18.5
2,600
12
12.5
7,700
13 Total tax due for the quarter. Add lines 2 through 12 in column (e). Enter here and on
䊳
Form 720 on the line for IRS No. 40

Part II

Identification of Models Subject to Gas Guzzler Tax

Fuel
No. of
Line no.
from above economy vehicles
rating

Make, model name, and model year

For Privacy Act and Paperwork Reduction Act Notice, see Form 720 instructions.

Cat. No. 50011N

Form

6197

(Rev. 10-2005)

Page

Form 6197 (Rev. 10-2005)

General Instructions

Line 13. Enter on line 13 the total of all amounts in column (e).

Section references are to the Internal Revenue Code unless
otherwise noted.

Example. In the second calendar quarter of 2006, a
manufacturer sold:

What’s New
The definition of automobile for purposes of the gas guzzler tax
has been revised. Limousines with a gross unloaded vehicle
weight of greater than 6,000 pounds are not subject to the gas
guzzler tax, effective for sales, uses, or leases after September
30, 2005.

Model

Fuel economy rating (mpg)

2

No. sold

X

20

6

Y

19.7

8

Purpose of Form
Use Form 6197 to figure the gas guzzler tax. The gas guzzler tax
is imposed on the sale, use, or lease by the manufacturer or
importer of an automobile of a model type that does not meet
certain standards for fuel economy. Automobiles imported for
business or personal use are subject to the tax.
The tax liability is figured each quarter and reported on Form
720. See the Instructions for Form 720 for information on how to
file and make deposits.
If you import a gas guzzling automobile, you may be eligible to
make a one-time filing for which no employer identification
number is needed and no deposit is required. See One-Time
Filing below for more information.

Definitions
Sale includes the manufacturer’s first use of an automobile or
first lease of an automobile. For rules on paying the tax in the
case of a first lease, see section 4217(e)(2).
Manufacturer includes a producer or importer. The lengthening
of existing automobiles is considered manufacture.
Automobile (including limousines) means any four-wheeled
vehicle rated at 6,000 pounds or less unloaded gross weight that
is propelled by an engine powered by gasoline or diesel fuel and
is intended for use mainly on public streets, roads, and
highways.
Automobile does not include vehicles operated exclusively on a
rail or rails; vehicles sold for use and used (a) as ambulances or
combination ambulance-hearses, (b) as Federal, state, or local
police or other law enforcement vehicles, and (c) for firefighting
purposes; or nonpassenger automobiles as defined in 49 CFR
(Code of Federal Regulations) 523.5.
Fuel economy means the average number of miles an
automobile travels on a gallon of gasoline (or an equivalent
amount of other fuel) as determined by the Environmental
Protection Agency (EPA).

Total automobiles sold

14

To complete Form 6197, the manufacturer would:
1. Find the fuel economy rating for the models sold. Both
models fall in the category for line 4 (19.5 - 20.5).
2. Enter 14 in column (d), line 4.
3. Enter $23,800 ($1,700 x 14) in column (e), line 4.
4. Enter $23,800 on line 13, and on the line for
IRS No. 40 on Form 720 for the second calendar quarter of 2006.

Instructions for Part II
Complete Part II by entering the information for each model type
sold during a quarter.
Using the facts in the Example above, the manufacturer would
make two entries, one for Model X and one for Model Y.
If you need more space, attach a schedule in the same format
as Part II.

One-Time Filing
If you import a gas guzzling automobile, you may be eligible to
make a one-time filing of Form 720 and Form 6197 if you meet
both of the following conditions:
● You do not import gas guzzling automobiles in the course of
your trade or business and
● You are not required to file Form 720 reporting excise taxes
for the calendar quarter, except for a one-time filing.
To make a one-time filing:
1. File the return for the quarter in which you incur liability for
the tax. See When To File in the Instructions for Form 720.
2. Pay the tax with the return. No deposits are required.

Model type means a particular class of automobile as
determined by EPA regulations.

3. If you are an individual and do not have an employer
identification number (EIN), enter your social security number
(SSN) or individual taxpayer identification number (ITIN) on Form
720 and Form 720-V, Payment Voucher, in the space for the EIN.

Instructions for Part I

4. Check the one-time filing box above Part I of Form 720.

Complete Part I, lines 2 through 13.
Column (d). Each line indicates a rating category based on the
fuel economy (mpg) of the model type. Enter the number of
automobiles sold, used, or leased during the quarter in column
(d) on the applicable line for the rating category.
If you sold two or more models that fall within one category,
enter the total number of cars for all models in that category (see
Example below).
Column (e). To figure the tax due for each category, multiply the
tax rate (column (c)) by the number of automobiles you entered
in column (d). Enter the result in column (e).

Example. In August 2006, H, an individual, imports a car. The
car has a fuel economy rating of 15 mpg, so H is liable for the
gas guzzler tax of $4,500 (Form 6197, line 9). H meets the two
conditions for a one-time filing, that is, (1) does not import gas
guzzling automobiles in the course of his trade or business, and
(2) is not otherwise required to file Form 720. H must file Forms
720 and 6197 for the third calendar quarter of 2006. H does not
have to deposit the gas guzzler tax of $4,500 but instead pays
with the return. H checks the one-time filing box on Form 720.

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