26 C.F.R. § 41.4483-7 Reduction in tax for vehicles registered in a contiguous foreign country.
Title 26 - Internal Revenue
(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 §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]
Title 26: Internal Revenue
PART 41—EXCISE TAX ON USE OF CERTAIN HIGHWAY MOTOR VEHICLES
Subpart B—Tax on Use of Certain Highway Motor Vehicles
§ 41.4483-7 Reduction in tax for vehicles registered in a contiguous foreign country.
