Motor Vehicle Tax & Highway Use Tax

Motor Vehicle Tax and Highway Use Tax

In New York City, commercial motor vehicles and trucks are subject to both the commercial motor vehicle tax and the highway use tax. These taxes are enforced by the New York State Department of Taxation and Finance and the New York City Department of Finance. Failing to comply with these taxes can result in penalties, fines, and other consequences. In this article, we will go over the laws and rules regarding the commercial motor vehicle tax and highway use tax in New York City and the consequences for noncompliance.

Commercial Motor Vehicle Tax (MVT)

The commercial motor vehicle tax (MVT) applies to non-passenger commercial motor vehicles that accumulate 50% of the vehicle’s annual mileage within New York City or the vehicle is used in connection with a business situated in New York City. The tax is based on the weight of the vehicle and is paid annually.

The current tax rates are:$40 for vehicles with a maximum gross weight of under 10,000 pounds and registered in NY State.$200 for vehicles with a maximum gross weight of 10,001 to 12,500 pounds.

$275 for vehicles with a maximum gross weight of 12,501 to 15,000 pounds.

$300 for vehicles with a maximum gross weight greater than 15,001 pounds.

Highway Use Tax (HUT)

The highway use tax is a tax on the mileage traveled by certain commercial motor vehicles on New York State public highways. The tax is based on the weight of the vehicle and the distance traveled in New York State.

To determine the HUT owed, the truck’s mileage is multiplied by a rate determined by the type of truck (trailer, tractor, etc.), its weight and whether it is loaded or unloaded. New York State provides tables with the rates to be used. Typically an accountant would be able to assist you or your business in determining the HUT owed.

Failure to file and pay the tax on time can result in penalties and interest charges and possible criminal charges if the truck is pulled over, stopped or inspected by state or local police or the Port Authority.

Consequences for Noncompliance

Noncompliance with the commercial motor vehicle tax and highway use tax can result in significant penalties, fines, and other consequences. The New York State Department of Taxation and Finance and the New York City Department of Finance have the authority to enforce these taxes and impose penalties for noncompliance.

Penalties include: Interest charges, seizure of property, suspension of registration, revocation of registration and criminal charges with hefty fines.