['Fleet Taxes']
['Highway use - Mileage tax']
07/19/2024
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International Fuel Tax Agreement (IFTA)
IFTA applies to qualified vehicles operating in more than one IFTA jurisdiction. A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and that:
- Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds; or
- Has three or more axles regardless of weight; or
- Is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle weight.
Intrastate vehicles are not reportable providing all their fuel purchases are tax paid and they do not have a decal. They are, however, subject to the highway use tax.
Fees
IFTA license, no fee
IFTA decals, $8 per vehicle
Temporary decal permit
A 30-day temporary decal permit is available for $8 through any service bureau. The vehicle-specific decal permit must be kept in the vehicle until permanent decals are issued. The temporary decal permit allows travel in all IFTA jurisdictions.
Biodiesel
New York State provides a partial exemption from the sales and use taxes for B20 biodiesel fuel sold in New York State. As a result, B20 purchased in New York State is taxed at 80 percent of the rate applicable to diesel motor fuel.
B20 is not reported separately but is included as a diesel fuel on the IFTA tax return. Carriers that purchase and consume B20 in New York State may be required to make an adjustment to their IFTA tax returns to account for the reduced rate. The adjustment is only required when the amount of B20 purchased in New York State is greater than the total taxable gallons of diesel computed for the New York jurisdiction on the IFTA tax return. Carriers that purchase B20 outside New York State will not adjust their IFTA tax returns, but may be eligible for a refund if they can show that the B20 was consumed in New York State.
Indian reservations untaxed fuel
Many fuel stations throughout the state of New York located on Indian Reservations and owned by tribes or tribal members are not paying NYS fuel or sales tax. Therefore, fuel purchased at these retail outlets is not “tax-paid” fuel for purposes of taking credits on an IFTA return. For a list of such stations, call (518) 457-7549 or visit http://tinyurl.com/NYSreservations.
One-stop credentialing and registration (OSCAR)
Five New York State agencies involved in regulating motor carrier activities have designed a one stop shopping website, One Stop Credentialing and Registration (OSCAR), that allows a single point of contact to apply, change, pay for, and receive the operating credentials for HUT, IFTA, IRP, and UCR. Visit www.oscar.state.ny.us/OSCR/OSCRCarrierHome for more details.
Fuel use tax
If a carrier operates qualified motor vehicle(s) entirely within New York State, the carrier is not required to be licensed under IFTA. However, a copy of the highway use tax certificate of registration must be carried in each qualified motor vehicle that operates entirely within New York State to serve as the fuel use tax license. If qualified motor vehicle(s) are occasionally operated outside New York State, trip permit(s) must be obtained to travel in other IFTA member jurisdictions, according to the laws and regulations of the applicable member jurisdictions.
A carrier who operates qualified motor vehicle(s) entirely within New York State may need to file Form MT-903-FUT, Fuel Use Tax Return, to account for any fuel use tax due in New York State only.
Mileage/Highway use tax
New York’s Highway Use Tax (HUT) applies to motor carriers operating any automobile, truck, tractor or other self-propelled device, alone or in combination with any trailer, semi-trailer, or dolly, having a gross weight in excess of 18,000 pounds, or any truck having an unloaded weight in excess of 8,000 pounds, or any tractor, having an unloaded weight in excess of 4,000 pounds, upon the public highways in New York. The highway use tax is imposed on motor carriers for the privilege of operating motor vehicles on the highways of New York and is based on the gross or unloaded weight of the motor vehicle and the number of miles the vehicle traveled on all state public highways. Miles traveled on the toll-paid portion of New York State Thruway are not subject to the tax.
There are two types of certificates:
- HUT certificate required for any truck, tractor, or other self propelled vehicle, including saddle- or full-mount mechanisms, with a gross weight in excess of 18,000 pounds.
- Automotive fuel carrier (AFC) certificate of registration required for any truck, trailer, semi-trailer, or other attached device transporting automotive fuel and having a gross weight exceeding 18,000 pounds. A separate AFC certificate of registration is not required for any tractor transporting automotive fuel trailers that has been issued a HUT certificate of registration.
Gross weight means the actual unloaded weight of the truck, tractor, or other self-propelled vehicle plus the heaviest combined weight of any trailer, semi-trailer, dolly, or combination of attached devices plus the maximum load to be carried or drawn by the motor vehicle. Instead of using the gross weight of the vehicle, a carrier may elect to use the unloaded weight of the vehicle to determine its HUT liability and registration requirements. This election is made on the first HUT return filed by the carrier during the calendar year and may not be changed until the first HUT return is filed for the next calendar year. When the unloaded weight method is used, any truck with an unloaded weight of more than 8,000 pounds, any tractor with an unloaded weight of more than 4,000 pounds, and any trailer, semi-trailer or other attached device transporting automotive fuel having a gross weight in excess of 18,000 pounds must have the applicable certificate of registration.
Unloaded weight means the actual weight of the motor vehicle, including all permanently attached equipment necessary for its performance as a vehicle, necessary for its safety, used exclusively for the protection of its load, or used exclusively for loading or unloading the vehicle.
Carriers must apply to the New York State Department of Taxation and Finance using Form TMT-1, Application for Highway Use Tax and/or Automotive Fuel Carrier Certificates of Registration, for a certificate of registration for each motor vehicle subject to the tax and operated on New York's public highways. New York-based carriers wishing to obtain HUT/AFC credentials online using the One Stop Credentialing and Registration (OSCAR) system should file Form TMT-39, New Account Application for Highway Use Tax (HUT) and Automotive Fuel Carrier (AFC) at www.oscar.ny.gov/OSCR/OSCRCarrierHome. When applying for a certificate, carriers must provide the license plate and state or Canadian jurisdiction information for each motor vehicle.
All carriers subject to the tax are required to display an HUT/AFC decal on vehicles subject to the tax, as follows:
- On a truck, tractor, or other self-propelled vehicle, place on the body of the motor vehicle as near as possible to the front registration plate; or
- On a trailer or other non-self-propelled vehicle that is used to transport automotive fuel, place on the body of the motor vehicle as near as possible to the rear registration plate.
Carriers are required to file Form MT-903, Highway Use Tax Return, on a monthly, quarterly, or annual basis depending on the amount of the preceding calendar year's tax liability. Carriers can use the New York Department of Taxation and Finance HUT/AFC web file site at www.tax.ny.gov/bus/hut/webfile.htm to file.
If the certificate of registration requires renewal, the Department will notify registrants of the requirements. Log in to OSCAR to renew and order new decals.
A carrier may obtain a HUT trip certificate of registration for a $25 fee. The HUT trip certificate allows a carrier to operate in New York State for 72 hours from the time of the trip certificate issuance and relieves the carrier from having to file and pay any tax related to the 72-hour period. A carrier may not apply for more than 10 trip certificates during a year. Copies of the HUT trip certificates must be kept for four years. HUT trip certificates are not available for trucks, trailers, dollies, or other attached devices transporting automotive fuel.
Purchasing used vehicles subject to HUT
Purchasers of vehicles subject to the HUT should obtain a tax clearance certificate from the seller before attempting to register the vehicle in New York. When registering the Vehicle, the New York Department of Motor Vehicles requires the registrant to provide the tax clearance certificate as proof that the vehicle is not subject to a tax lien.
HUT recordkeeping
Records gathered to file the HUT must be kept for at least four years. The records kept may depend on the method used for filing the HUT (gross weight or unloaded weight).
All carriers must keep the following daily records:
- Certificate of registration number;
- Plate number and plate jurisdiction (a state or province);
- Vehicle identification number (VIN); and
- Owner’s name (if operating a leased or interchanged vehicle).
All of the following information must also be recorded for each trip:
- Trip date;
- Trip origin and destination;
- Round trips each day (if applicable);
- Total miles traveled in New York and total miles traveled outside New York; and
- New York State Thruway miles.
Gross weight method filers must keep the total miles traveled in New York State laden (with a load or partial load) and the total miles traveled in New York State unladen (without any load). This information must be gathered separately for each trip for each tractor that operates alone, each truck that operates with an attached device when either is laden, and each unladen truck that operates with an unladen attached device.
Unloaded weight method filers need to keep a record of operations for each truck with an unloaded weight of more than 8,000 pounds and for each tractor with an unloaded weight of more than 4,000 pounds.
The data must be compiled into monthly summaries.
Tax refunds or credits
An IFTA carrier may claim a credit for any credits for tax-paid fuel on the IFTA tax return for eight calendar quarters from the end of the quarter in which any credit accrued or may claim a refund within 49 months from the end of the quarter in which any credit accrued on Form MT-907, Claim for Fuel Use Tax Refund.
An IFTA carrier may claim a refund of New York fuel use tax based on the carrier’s own computation of the sales tax component of the New York fuel use tax rate. The claim for refund must be filed on Form IFTA-115, Alternative Tax Rate Claim for Fuel Use Tax Refund, within 49 months from the end of the quarter in which the refund is claimed.
IFTA
Information regarding credits or refunds under IFTA is included in the IFTA Agreement manual.
PTO/reefer fuel
New York allows for refunds on tax-paid fuel used in reefer equipment (trailers only). While a refund permit is not required, refunds must be requested within three years from date of purchase. A Form FT-946/1046, Motor/Diesel Motor Fuel Tax Refund Application, together with the original fuel receipts, must be submitted for all refund requests.
Power-take-off fuel refunds are not available.
Refunds are available for fuel not used in the operation of a motor vehicle over New York highways.
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Copyright 2024 J. J. Keller & Associate, Inc. For re-use options please contact copyright@jjkeller.com or call 800-558-5011.