New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter III - Fuel and Carrier Taxes › Subchapter C - Truck Mileage and Fuel Use Taxes › Article 3 - Fuel Use Tax › Part 491 - Fuel Use Tax Licenses And Decals › Section 491.2 - Who should apply for licenses and decals

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, §§ 521, 522, 526(d) and 528
(a)
(1)
					 Generally, an application for a fuel use tax license and decal(s) must be made
					 by any carrier who operates or will be operating a qualified motor vehicle upon
					 the public highways of New York State, provided such qualified motor vehicle is
					 not exempt from the provisions of article 21-A of the Tax Law. Many qualified
					 motor vehicles that are subject to the provisions of article 21-A of such law
					 are, for varying periods of time, leased to others, interchanged with qualified
					 motor vehicles belonging to others or, in some other manner, used or controlled
					 by persons other than the owners. Under the Tax Law, the owner of a qualified
					 motor vehicle and any other person having a lawful use or control, or a right
					 to the use or control of a qualified motor vehicle are each carriers, and are
					 jointly and severally liable for the fuel use tax. Moreover, every carrier must
					 apply to the department or the carrier's base jurisdiction for a fuel use tax
					 license and decal(s) for each qualified motor vehicle operated or to be
					 operated by the carrier on the public highways of New York State.
(2)
(i)
					 Except as provided in paragraph (5) of this subdivision, to avoid the issuance
					 of numerous licenses and decals for the same qualified motor vehicles, if a
					 lessor engaged in the business of leasing or renting qualified motor vehicles
					 without drivers for compensation to lessees has already secured an appropriate
					 fuel use tax license and decal(s) for the qualified motor vehicle, any carrier
					 operating such qualified motor vehicle under a lease or other agreement need
					 not obtain a license and decal(s). A carrier operating a qualified motor
					 vehicle under a lease or other agreement covering a period of 30 days or more
					 may obtain a license and decal(s) for such qualified motor vehicle and be
					 deemed to be the licensee. However, if the lease or other agreement is for 29
					 days or less, the lessor will be the licensee, unless the lessee has a written
					 contract that provides that the lessee will report and pay the fuel use tax on
					 the qualified motor vehicle subject to such lease and the lessor has a copy of
					 the lessee's IFTA fuel tax license which is valid for the term of the lease. In
					 such case, the lessee must obtain a license and decal(s) for such qualified
					 motor vehicle.
(ii) Where a carrier
					 is using independent contractors under leases of 30 days or more, the lessor
					 and lessee will be given the option of designating which party will obtain the
					 appropriate license and decal(s) for such qualified motor vehicle and report
					 and pay the fuel use tax. In the case of a carrier using independent
					 contractors under leases of 29 days or less, the lessor is responsible for
					 reporting and paying the fuel use tax on the subject qualified motor vehicle
					 and must obtain the appropriate license and decal(s).
(3)
(i)
					 Where any carrier other than the owner of a qualified motor vehicle obtains a
					 fuel use tax license and decal(s), such decal(s) will be valid only during the
					 term of the lease or other agreement, or any immediate renewal or extension
					 thereof, that authorizes the use or control of such qualified motor vehicle
					 unless such decal(s) otherwise expires or is suspended or revoked. However, the
					 licensee may retain such license until such license expires or is suspended or
					 revoked.
(ii) See section
					 491.8(d) 
					 of this Part regarding surrender of licenses and destruction of decals in the
					 case of qualified motor vehicles operated by carriers other than the
					 owners.
(4) In the event
					 that the owner of a qualified motor vehicle conveys the use or control of the
					 qualified motor vehicle to another carrier and such carrier in turn conveys
					 that authority to a third party, the latter conveyance and any subsequent
					 conveyances shall also be subject to the provisions of this
					 subdivision.
(5) Pursuant to the
					 joint administration provisions of section 528(a) of article 21-A of the Tax
					 Law, where a carrier operating exclusively in New York State or a carrier
					 engaged in interstate commerce not required to obtain an IFTA license, obtains
					 a New York State fuel use tax license in accordance with the provisions of
					 section
					 491.3(c) 
					 of this Part (combined highway use tax permit/fuel use tax license), the
					 highway use tax licensing provisions with respect to leases (see section
					 473.8  of this
					 Title) shall be applicable to such carrier.