2023 New York Laws › VAT - Vehicle and Traffic › Title 4 - Registration of Vehicles › Article 14-B - Bus Taxation Proration and Reciprocity Agreement › 406 - Bus Taxation Proration Agreement.

§ 406. Bus  taxation  proration  agreement. The bus taxation proration
agreement  is  hereby  enacted  into  law  and  entered  into  with  all
jurisdictions  legally  joining  therein  in  the  form substantially as
follows:
ARTICLE I. Purposes and Principles.
Section 1. Purposes of Agreement. It is the purpose of this  agreement
to  set  up  a system whereby any contracting state may permit owners of
fleets of busses  operating  in  two  or  more  states  to  prorate  the
registration  of  the  busses  in such fleets in each state in which the
fleets operate on the basis of the proportion of miles  operated  within
such state to total fleet miles, as defined herein.
Section  2.  Principle  of  Proration  of  Registration.  It is hereby
declared that in making this agreement the contracting states adhere  to
the  principle  that  each  state should have the freedom to develop the
kind of highway user  tax  structure  that  it  determines  to  be  most
appropriate  to itself, that the method of taxation of interstate busses
should not be a determining factor in developing its user tax structure,
and that annual taxes or other taxes of the fixed fee type  upon  busses
which are not imposed on a basis that reflects the amount of highway use
should   be   apportioned   among  the  states,  within  the  limits  of
practicality, on the basis of vehicle miles traveled within each of  the
states.
ARTICLE II. Definitions.
(a)  State.  State  shall include the states of the United States, the
District  of  Columbia,  the  territories  of  the  United  States,  the
Provinces of Canada, and the States, Territories and Federal District of
Mexico.
(b) Contracting State. Contracting state shall mean a state which is a
party to this agreement.
(c)  Administrator. Administrator shall mean the official or agency of
a state administering the fee involved, or, in the case of proration  of
registration,  the  official  or  agency  of  a  state administering the
proration of registration in that state.
(d) Person. Person shall include any individual, firm,  copartnership,
joint  venture, association, corporation, estate, trust, business trust,
receiver, syndicate, or any other group or combination acting as a unit.
(e) Base State. Base state shall mean the state from or in  which  the
bus  is  most  frequently  dispatched,  garaged,  serviced,  maintained,
operated, or otherwise controlled, or also in the case of  a  fleet  bus
the  state  to  which  it  is allocated for registration under statutory
requirements.   In order that this section  may  not  be  used  for  the
purpose  of  evasion  of  registration  fees,  the administrators of the
contracting states may make the final decision as  to  the  proper  base
state,  in  accordance  with Article III (h) hereof, to prevent or avoid
such evasion.
(f) Bus. Bus shall mean any motor vehicle of a bus type engaged in the
interstate transportation of passengers and subject to the  jurisdiction
of  the Interstate Commerce Commission, or any agency successor thereto,
or one or more state regulatory agencies concerned with  the  regulation
of passenger transport.
(g)  Fleet.  As  to  each  contracting state, fleet shall include only
those busses which actually travel a portion of  their  total  miles  in
such state. A fleet must include three (3) or more busses.
(h)  Registration.  Registration  shall mean the registration of a bus
and the payment of annual fees and taxes as set forth in or pursuant  to
the laws of the respective contracting states.
(i)  Proration  of  registration. Proration of registration shall mean
registration of fleets of busses in accordance with Article IV  of  this
agreement.
(j)  Reciprocity.  Reciprocity shall mean that each contracting state,
to  the  extent  provided  in  this  agreement,  exempts  a   bus   from
registration and registration fees.
ARTICLE III. General Provisions.
(a)  Effect on Other Agreements, Arrangements, and Understandings.  On
and after  its  effective  date,  this  agreement  shall  supersede  any
reciprocal or other agreement, arrangement, or understanding between any
two or more of the contracting states covering, in whole or in part, any
of  the  matters covered by this agreement; but this agreement shall not
affect any reciprocal or other agreement, arrangement, or  understanding
between  a  contracting  state and a state or states not a party to this
agreement.
(b) Applicability to Exempt Vehicles. This agreement shall not require
registration in a contracting state of any vehicles which are  in  whole
or  part  exempt from registration under the laws or regulations of such
state without respect to this agreement.
(c) Inapplicability to Caravaned Vehicle. The benefits and  privileges
of this agreement shall not be extended to a vehicle operated on its own
wheels,  or  in  tow  of a motor vehicle, transported for the purpose of
selling or offering the same for  sale  to  or  by  any  agent,  dealer,
purchaser, or prospective purchaser.
(d)  Other  Fees  and Taxes. This agreement does not waive any fees or
taxes charged or levied by any state in connection with the ownership or
operation of vehicles other than registration fees  as  defined  herein.
All  other fees and taxes shall be paid to each state in accordance with
the laws thereof.
(e) Statutory Vehicle Regulations.  This agreement shall not authorize
the operation of a vehicle in any contracting state contrary to the laws
or regulations thereof, except  those  pertaining  to  registration  and
payment  of  fees; and with respect to such laws or regulations, only to
the extent provided in this agreement.
(f) Violations. Each contracting state reserves the right to withdraw,
by order of the administrator thereof, all or any part of  the  benefits
or  privileges  granted pursuant to this agreement from the owner of any
vehicle or fleet of vehicles operated in violation of any  provision  of
this  agreement.  The administrator shall immediately give notice of any
such violation and withdrawal of any such benefits or privileges to  the
administrator  of each other contracting state in which vehicles of such
owner are operated.
(g) Cooperation. The administrator of each of the  contracting  states
shall   cooperate  with  the  administrators  of  the  others  and  each
contracting state hereby agrees to furnish such aid  and  assistance  to
each  other  within  its  statutory  authority as will aid in the proper
enforcement of this agreement.
(h) Interpretation. In any dispute between or among contracting states
arising   under   this   agreement,   the   final   decision   regarding
interpretation of questions at issue relating to this agreement shall be
reached  by  joint  action of the contracting states, acting through the
administrator  thereof,  and  shall  upon  determination  be  placed  in
writing.
(i)  Effect of Headings. Article and section headings contained herein
shall not be deemed to govern, limit, modify, or in  any  manner  affect
the  scope,  meaning, or intent of the provisions of any article or part
hereof.
(j) Entry into Force. This agreement shall enter into force and become
binding between  and  among  the  contracting  states  when  enacted  or
otherwise  entered  into  by  any two states. Thereafter, it shall enter
into force and become binding with respect to  any  state  when  enacted
into  law  by such state.   If the statutes of any state so authorize or
provide, such  state  may  become  party  to  this  agreement  upon  the
execution  thereof  by  an  executive or administrative official thereof
acting on behalf of and for such state.
ARTICLE IV. Proration of Registration.
(a) Applicability. Any owner of a fleet may  register  the  busses  of
said  fleet  in  any  contracting  state  by  paying to said state total
registration fees in an amount equal to that obtained  by  applying  the
proportion  of in-state fleet miles divided by the total fleet miles, to
the  total  fees  which  would  otherwise  be   required   for   regular
registration of each and all of such vehicles in such contracting state.
All  fleet  pro-rata registration fees shall be based upon the mileage
proportions of the fleet during the period of twelve  months  ending  on
August  thirty-first next preceding the commencement of the registration
year for which registration is sought, except, that mileage  proportions
for  a  fleet  not  operated  during  such  period  in  the  state where
application  for  registration  is  made  will  be  determined  by   the
administrator  upon  the  sworn application of the applicant showing the
operations  during  such  period  in  other  states  and  the  estimated
operations  during  the  registration  year  for  which  registration is
sought, in the state in which  application  is  being  made;  or  if  no
operations  were  conducted  during  such period a full statement of the
proposed method of operation.
If any busses operate in two or more states which permit the proration
of registration on the basis of a fleet of busses consisting of a lesser
number of vehicles than provided in Article II (g), such  fleet  may  be
prorated as to registration in such states, in which event the busses in
such  fleet  shall  not be required to register in any other contracting
states if each such vehicle is  registered  in  some  contracting  state
except  to  the  extent  it  is  exempt from registration as provided in
Article III (b).
If the administrator of any state determines, based on his  method  of
the  operation  thereof, that the inclusion of a bus or busses as a part
of a fleet would adversely affect the proper fleet fee which  should  be
paid  to  his  state,  having due regard for fairness and equity, he may
refuse to permit any or all of such busses to be included in  his  state
as a part of such fleet.
(b)  Total  Fleet  Miles.  Total  fleet  miles,  with  respect to each
contracting state, shall mean the total miles operated by the fleet  (1)
in  such state, (2) in all other contracting states, (3) in other states
having proportional registration provisions, (4) in  states  with  which
such  contracting state has reciprocity, and (5) in such other states as
the administrator determines should be included under the  circumstances
in order to protect or promote the interest of his state; except that in
states  having  laws  requiring  proration  on  the basis of a different
determination  of  total  fleet  miles,  total  fleet  miles  shall   be
determined on such basis.
(c)  Leased  Vehicles. If a bus is operated by a person other than the
owner as a part of a fleet which is subject to the  provisions  of  this
article, then the operator of such fleet shall be deemed to be the owner
of said bus for the purposes of this article.
(d)  Extent  of  Privileges.  Upon  the  registration  of a fleet in a
contracting state pursuant to this article, each bus in the fleet may be

operated in both interstate and  intrastate  operations  in  such  state
except as provided in Article III (e).
(e)  Application  for  Proration.  The  application  for  proration of
registration shall be made in each contracting state upon  substantially
the  application forms and supplements authorized by joint action of the
administrators of the contracting states.
(f) Issuance of Identification. Upon  registration  of  a  fleet,  the
state  which  is  the base state of a particular bus of the fleet, shall
issue the required license plates and registration card for such bus and
each contracting state in which the fleet of which such bus is  a  part,
operates, shall issue a special identification identifying such bus as a
part  of  a  fleet  which  has  fully  complied  with  the  registration
requirements of such state. The required  license  plates,  registration
cards  and identification shall be appropriately displayed in the manner
required by or pursuant to the laws of each respective state.
(g) Additions to Fleet. If any bus is added to a prorated fleet  after
the  filing  of  the  original  application,  the  owner  shall  file  a
supplemental application.  The owner shall register  such  bus  in  each
contracting  state  in  like  manner as provided for busses listed in an
original  application  and  the  registration  fee  payable   shall   be
determined  on the mileage proportion used to determine the registration
fees payable for busses registered under the original application.
(h) Withdrawals from Fleet. If any bus is withdrawn  from  a  prorated
fleet  during  the  period for which it is registered or identified, the
owner shall notify the administrator  of  each  state  in  which  it  is
registered  or  identified,  of  such  withdrawal  and  shall return the
plates, and registration card or identification as may be required by or
pursuant to the laws of the respective states.
(i) Audits. The administrator of each contracting state shall,  within
the  statutory  authority  of  such  administrator, make any information
obtained upon an audit of records of  any  applicant  for  proration  of
registration  available  to  the administrators of the other contracting
states.
(j) Errors in Registration. If it is determined by  the  administrator
of a contracting state, as a result of such audits or otherwise, that an
improper  fee  has been paid his state, or errors in registration found,
the administrator may require the fleet  owner  to  make  the  necessary
corrections in the registration of his fleet and payment of fees.
ARTICLE V. Reciprocity.
(a)  Grant  of  Reciprocity.  Each  of  the  contracting states grants
reciprocity as provided in this article.
(b) Applicability. The provisions of this agreement  with  respect  to
reciprocity  shall  apply  only to a bus properly registered in the base
state of the bus, which state must be a contracting state.
(c) Non-applicability  to  Fleet  Busses.    The  reciprocity  granted
pursuant  to  this article shall not apply to a bus which is entitled to
be registered or identified as part of a prorated fleet.
(d) Extent of Reciprocity. The reciprocity granted  pursuant  to  this
article  shall  permit  the interstate operation of a bus and intrastate
operation which is incidental to a trip of such bus involving interstate
operation.
(e) Other Agreements. Nothing in this agreement shall be construed  to
prohibit  any  of  the  contracting  states  from entering into separate
agreements with each other for the granting of temporary permits for the
intrastate operation of vehicles registered in the other state;  nor  to
prevent  any  of the contracting states from entering into agreements to
grant reciprocity for intrastate operation  within  any  zone  or  zones
agreed upon by the states.
ARTICLE VI. Withdrawal or Revocation.
Any  contracting  state  may  withdraw from this agreement upon thirty
days written notice to each other contracting state, which notice  shall
be  given  only after the repeal of this agreement by the legislature of
such state, if adoption was by legislative act, or after renunciation by
the appropriate administrative official of such contracting state if the
laws thereof empower him so to renounce.
ARTICLE VII. Construction and Severability.
This compact shall be liberally construed  so  as  to  effectuate  the
purposes  thereof. The provisions of this compact shall be severable and
if any phrase, clause, sentence or provision of this compact is declared
to be contrary to the constitution of any state or of the United  States
or  the  applicability  thereof  to  any  government,  agency, person or
circumstance is held invalid, the validity  of  the  remainder  of  this
compact  and the applicability thereof to any government, agency, person
or circumstance shall not be affected thereby. If this compact shall  be
held contrary to the constitution of any state participating herein, the
compact  shall remain in full force and effect as to the remaining party
states and in full force and effect as to the state affected as  to  all
severable matters.