N.Y. Comp. Codes R. & Regs. tit. 20 § 491.8

Current through Register Vol. 46, No. 45, November 2, 2024

Section 491.8 - Surrender of licenses and decals and requisite destruction of decals

Tax Law, § 509(5), 528(a), (b)

(a) Significant changes in the circumstances surrounding the original issuance of a New York State fuel use tax license and decal or an IFTA license and decals may result in the need to surrender the license to the department for cancellation and/or destroy any reproductions of such license and all applicable decals. Generally, the surrender of licenses and/or the destruction of all reproductions of such license and of decals shall be at the direction of the department, as in the case of the issuance of corrected licenses or the suspension or revocation of licenses and decals. However, where any change in circumstances significantly alters the nature of the qualified motor vehicle for which a New York State fuel use tax decal or IFTA decals were issued, such decal(s) must be immediately destroyed without a specific request by the department to do so. Additionally, where any change in circumstances significantly alters the nature of the carrier to whom the license and decal(s) were issued, such license must be immediately surrendered and all reproductions of such license and the decal(s) destroyed or, in the case of unused IFTA decals, returned to the department, without a specific request by the department to do so. Any transfers of licenses and decals that are not specifically authorized by this Article are invalid and immediately result in the revocation of the New York State fuel use tax license and decal or IFTA license and decals issued to the carrier, or carriers that are parties to such transfer.

(b) A New York State fuel use tax decal or IFTA decals must be destroyed within five days after:

(1) any change in ownership of the qualified motor vehicle or if the qualified motor vehicle is in any manner retired from service;

(2) the qualified motor vehicle for which they were issued becomes no longer subject to the provisions of article 21-A of the Tax Law; or

(3) the activities of the qualified motor vehicle for which they were issued change in such a manner as to render the decal(s) unnecessary. Thus, for example, decal(s) must be destroyed when a qualified motor vehicle is sold, retired from service, no longer operated on the public highways of this State (or, in the case of IFTA decals, any other IFTA jurisdiction), modified so that such vehicle no longer meets the definition of a qualified motor vehicle, or will now be used in all operating jurisdictions exclusively for exempt purposes.

(c)

(1) The New York State fuel use tax license and decal or IFTA license and decals are personal to the carrier to whom they are issued and are not transferable among carriers. Thus, except as provided herein, within five days after the carrier ceases to operate qualified motor vehicles, or reorganizes its business in a different form (other than a mere change of identity), the New York State fuel use tax license or IFTA license issued to the carrier must be surrendered for cancellation and all reproductions of such license and the decal(s) must be destroyed (or in the case of unused IFTA decals, returned to the department). In addition to any other meaning, a New York State fuel use tax license and decal or an IFTA license and decals will be deemed transferred, if any change in partnership interest occurs, or if shares of stock in a corporate carrier are acquired by any person such that the person owns, directly or indirectly, more than 10 percent (25 percent or more in the case of a carrier having four or fewer shareholders) of the number of shares of voting stock of such carrier.

(2) The bequest or inheritance of a New York State fuel use tax license and decal or an IFTA license and decals from a deceased carrier directly to:

(i) an ancestor of the decedent;

(ii) the spouse of the decedent;

(iii) a lineal descendant of the decedent, of the decedent's spouse, or of a parent of the decedent; or

(iv) the spouse of any lineal descendant described in subparagraph (iii) of this paragraph, will not, of itself, be considered a transfer of such a license and decal(s) that will operate as grounds to immediately revoke such license and decal(s), provided the department is promptly notified. However, such bequest or inheritance will cause such revocation 90 days after the death of the carrier. At such time, the New York State fuel use tax license or IFTA license must be immediately surrendered to the department and the decal(s) issued in conjunction with such license must be immediately destroyed or, in the case of unused IFTA decals, returned to the department.

(d)

(1) A carrier operating a qualified motor vehicle pursuant to a lease or other agreement may, or must, depending upon the provisions of the leasing agreement and the terms of that agreement (as set forth in detail in section 491.2[a] of this Part), operate such qualified motor vehicle under the New York State fuel use tax license and decal or IFTA license and decals issued to the owner of the qualified motor vehicle. This activity will not be considered a transfer of licenses and decals or grounds for revocation. In a case where a carrier other than the owner obtains a New York State fuel use tax license and decal or an IFTA license and decals for the qualified motor vehicle, that carrier must destroy its decal(s) within five days after the termination of the lease or other agreement that authorizes the use or control of the qualified motor vehicle. In the event that the lease or other agreement is immediately renewed or extended and the same carrier continues to operate the qualified motor vehicle at issue, the decal(s) need not be destroyed until five days after the end of the renewal or extension. Further, in the case of an IFTA licensee, where such carrier is operating other qualified motor vehicles pursuant to such license, the carrier must retain such license. If such carrier is not operating any qualified motor vehicles pursuant to such license, the carrier may surrender the license to the department or retain the license until such license expires or is suspended or revoked. However, if the carrier retains such license, the carrier is responsible for filing fuel use tax returns even where the carrier has no activity during a return period.

(2)

(i) Where the owner of a qualified motor vehicle has obtained a New York State fuel use tax license and decal or an IFTA license and decals for the qualified motor vehicle and the use or control of the qualified motor vehicle is subsequently conveyed to another carrier who also obtains a New York State fuel use tax license and decal or an IFTA license and decals, as the case may be, for the qualified motor vehicle, the owner is not required to surrender its license to the department or to destroy its decal(s). In such a case, the owner's license must be held in abeyance by the owner and the decal(s) must remain affixed to the qualified motor vehicle even though the decal(s) that have been issued to the carrier operating the qualified motor vehicle will also be affixed to such qualified motor vehicle.

(ii) In the alternative, where the owner has no qualified motor vehicles on which the owner must report and pay the fuel use tax, the New York State fuel use tax license or IFTA license issued to the owner of the qualified motor vehicle may be surrendered to the department and all reproductions of such license and any decals issued to the owner may be destroyed or, in the case of unused IFTA decals, returned to the department in order to relieve the owner from having to file fuel use tax returns.

(3) Pursuant to the joint administration provisions of section 528(a) of article 21-A of the Tax Law, where a carrier operating qualified motor vehicles exclusively in New York State or a carrier engaged in interstate commerce not required to obtain an IFTA license must obtain 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 provisions with respect to surrender of permits and stickers and requisite destruction of stickers for carriers operating under a lease or other agreement (see section 474.6 of this Title) shall be applicable to such carrier.

(e) A New York-based IFTA carrier, in good standing with the department, whose base jurisdiction changes during the calendar year, is allowed to maintain such carrier's New York IFTA license and decals for the remainder of the calendar period, but shall not be eligible to renew such carrier's New York IFTA license in the succeeding calendar year.

(f) The Department of Taxation and Finance may take possession, and a carrier shall surrender such carrier's New York State fuel use tax license and decal or IFTA license and decals that have been suspended or revoked and any license and decal(s) that are being fraudulently carried in or displayed on, as the case may be, a qualified motor vehicle. The department may also take possession, and a carrier shall surrender any New York State fuel use tax license and decal or IFTA license and decals unlawfully carried or displayed by a carrier other than the carrier to whom the license and decal(s) were issued. The department may direct any peace officer, acting pursuant to the officer's special duties, any police officer, any employee of the Department of Taxation and Finance or of the Department of Transportation, or any person designated by any other jurisdiction to enforce the provisions of the IFTA to take possession of such license and decal(s).

N.Y. Comp. Codes R. & Regs. Tit. 20 § 491.8