Who Has to Pay This Tax?
- If you transfer a taxicab license, the buyer must pay the transfer tax. If the buyer does not pay the tax, the seller will be held responsible for the tax.
- If you transfer a controlling interest in a taxicab license (transferring shares of stock or the interest of an entity that owns the license) then it is treated as a transfer of the license. The new controlling entity must pay the tax.
Who is Exempt from the Tax?
The following transactions are exempt from the tax:
- Transactions by or with New York State, a political subdivision of the State, or a public benefit corporation;
- Transactions by or with the United States;
- Transactions by or with the United Nations;
- Transactions by or with not-for-profit organizations that were formed and operated exclusively for religious, charitable, or educational purposes or for the prevention of cruelty to children or animals; and
- Transfers of taxicab licenses or interests in licenses by means of a lease, license, or other rental arrangement, where the term does not exceed six months (including the maximum period for which the term can be extended or renewed).
Forms and Reports
NYC-TCLT - Taxicab License Transfer Tax Return
- The buyer and the seller must file a joint return.
- The interest rate on underpayments is the federal short term rate plus 7%.
You must file the return at the time you pay the tax - no later than 30 days following the transfer of the license. The tax form (NYC-TCLT) and payment are filed with the NYC Taxi & Limousine Commission; not the Department of Finance.
The tax is 5% of the price paid for the transfer of the taxicab license or the transfer of the interest in the license.
Note: Price paid can include cancellation or discharge of an indebtedness or obligation. Only the price paid for the taxicab license is subject to the tax. Any amounts paid for the taxicab or other property are not subject to the tax.
Local Law: Title 11, Chapter 14, Administrative Code
Enabling Act: Tax Law Section 1201(j)