Understanding the New York Highway Use Tax (NYHUT)
If you are driving a commercial vehicle on New York State roads, you might be affected by the New York Highway Use Tax.
The amount of taxes owed and when they must be paid depend on several things. Let’s start by addressing what this tax is.
What Is a NY Highway Use Tax?
The New York Highway Use Tax (NYHUT) is a tax applied to commercial vehicles traveling on New York State’s roads. This typically applies to trucks as well as tractors. Think of it as a toll road across the entire state. It aims to contribute to New York’s “Highway and Bridge Trust Fund.” This fund helps maintain the state’s roads and infrastructure. Since commercial vehicles will travel these roads frequently, the state wants them to keep the roads safe for travel.
Who Has To Pay the NY Highway Use Tax?
Not all vehicles are taxed the same amount or with the same frequency. Vehicles required to pay this tax are…
- Trucks with an unloaded weight of 8,000 lbs.
- Tractors with an unloaded weight of 4,000 lbs.
- Trucks or tractors with a gross weight of over 18,000 lbs.
These vehicles are required to register and pay for HUT. It doesn’t matter if your business is located in another state or not. Businesses must file a TMT-39 form (New Application for Highway Use Tax). If approved, you will receive credentials for New York’s “One Stop Credentialing and Registration System” (OSCAR). You will be sent a HUT decal that must be placed on the vehicle. This should be placed in a place that is easy to see, usually next to the license plate.
Ways to File the New York HUT
There are two ways to go about filing: The Gross Weight Method and the Unloaded Weight Method.
To quote NYHUT.com:
“The gross weight of a tow truck does not include the weight of any vehicle it pulls. The unloaded weight is the actual weight of the motor vehicle, excluding the weight of the driver or any passenger.”
The most common is the Gross Weight Method. The two options for this method are the Straight Line Method and the Heaviest Weigh Method. Carmalink explains in their video:
“(The Straight Line Method) is based on taxable miles for each vehicle you operated during the period. (The Heaviest Weight Method is used) if you are operating more than one truck or tractor on NY State public highways during (the) reporting period.”
The requirements for keeping records are the same with either choice. Make sure to keep track of your miles driven both in and out of NY State. Any miles reported must have records. Examples include trip tickets, driver time cards, GPS reports, and hours of service records.
How Often Does it Need to be Filed?
The frequency of how often you need to file depends on the amount due.
- Monthly if more than $4,000.
- Quarterly if less than $4,000.
- Annually if less than $250.
You will need the tax department’s approval to pay annually if you owe less than $250.
Penalties For Failing to File
New York has strict penalties for failing to pay and filing incorrect information. A business is charged 10% of what they owe if they fail to pay on time. They also owe an extra 1% for every month the tax is late. If they do not register for HUT or don’t have a decal on their vehicle, they can be fined up to $2000 for their first offense. Criminal penalties can apply if their vehicle is heavier than what they list on their HUT certificate. These start at $250 for the first conviction. If convicted a second time, they can be fined up to $500 and face up to 10 days in jail.
If any information is falsified on a tax return, that person can be fined up to $250,000 on a Federal level.
While you can file this information on your own, the consequences of filing incorrectly can be severe. Fortunately, FCCR provides services for filing your New York Highway Use Tax. Our experts are familiar with the laws and regulations and can assure peace of mind when operating through New York State.
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