Interpretation ID: 20264.drn

Russell Roden, P.E.
President
Atlantic Design Inc.
3740 Federal Lane
Abingdon, MD 21009-2742

Dear Mr. Roden:

This responds to your request for an interpretation whether your products are "motor vehicles" within the National Highway Traffic Safety Administration's (NHTSA's) definition. As explained below, the answer is no.

Your letter states that your company designs and manufactures "modular process systems" for the construction, industrial maintenance, and the quarry and mining industry. Your products include grit recycling and dust collection systems, and sand "dedusting units." In order to facilitate movement, your company's equipment is permanently attached to flat trailers which are manufactured by another company. You emphasize that the equipment your company designs and manufactures is a "process system where the trailer is used as a base skid with wheels for mobility and erection." As an example of your company's products, you included a photograph of an "air classification system" used in the bridge and industrial painting industry and in the quarry and mining industry.

In a telephone conversation with Dorothy Nakama of my staff, you explained that the length of time your company's equipment is at a job site depends on the task. The equipment could be at a maintenance or construction site or at a quarry for years at a time. You stated that the equipment rarely stays at a job site for less than six to eight weeks.

NHTSA's statute defines "motor vehicle" at 49 U.S.C. 30102(a)(6) as:

a vehicle driven or drawn by mechanical power and manufactured primarily for use on public streets, roads, and highways, but does not include a vehicle operated only on a rail line.

Whether the agency considers your products to be motor vehicles depends on their use. The statutory definition does not encompass mobile construction equipment, such as cranes and scrapers, which use the highway only to move between job sites and which typically spend extended periods of time at a single job site. In such cases, the on-highway use of the vehicle is merely incidental and is not the primary purpose for which the vehicle was manufactured. In contrast are instances where vehicles, such as dump trucks, frequently use the highway going to and from job sites, and stay at a job site for only a limited time. Such vehicles are considered motor vehicles for purposes of our statute, since the on-highway use is more than "incidental."

Based on your description, it appears that your company's vehicles are not motor vehicles within the meaning of our statute. This is because the vehicles stay on job sites for extended periods of time (usually for months or years) and only use the highway to move from site to site. We may reassess this interpretation if we were to receive additional information indicating that your vehicles use the roads more than on an incidental basis.

Please note that since States may require products such as those which your company manufactures to be registered, you may wish to contact State motor vehicle administrators to determine whether there are State requirements you must meet.

You also pose several questions about the application of excise taxes to your product. We are unable to answer questions relating to taxes. For further information about Federal taxes, please contact the U.S. Internal Revenue Service (IRS). The IRS's web site is at www.irs.gov. You should contact the State of Maryland for information about Maryland tax law.

I hope this information is helpful. If you have any questions, please contact Dorothy Nakama at (202) 366-2992.

Sincerely,
Frank Seales, Jr.
Chief Counsel
ref:VSA
d.10/26/99