Fuel Use Tax / Highway Use Tax

New York State taxes both fuel and highway use.

The fuel use tax applies only to vehicles above a certain weight that operate across state lines, or to and from Canada. The highway use tax applies to all vehicles operating in New York above a certain weight. Special exemptions and reporting requirements exist for both the fuel use tax and the highway use tax.

New York State participates in the International Fuel Tax Agreement (IFTA) to collect fuel use taxes. The lower 48 states and all Canadian provinces take part in IFTA. Alaska, Hawaii, the District of Columbia, the Northwest Territories, Yukon, and Nunavut do not.

Under IFTA, passenger or freight carriers based in New York State pay fuel use taxes only to New York State. The base jurisdiction is then responsible for remitting the taxes due to the other jurisdictions. In most cases, the base jurisdiction will do a single audit for all member jurisdictions. Thus, IFTA eliminates the need to file fuel use tax reports for each jurisdiction where the vehicle travels. Fuel use tax filings are due every quarter.

Besides, the carrier must get two IFTA decals for each qualified motor vehicle. The carrier must get both the license and the decals from the carrier's base jurisdiction. The license and decals will allow those vehicles to travel in all IFTA member jurisdictions.

Carriers must also follow all other local laws.

Owners and operators must get a Highway Use Tax registration and decal to collect the tax.