Taxicab License Transfer Tax
New in 2009:
- New York City now has the authority to adopt rules
that require electronic filing of tax returns.
- The interest rate on underpayments has been increased
from the federal short term rate plus five percent to the federal short term
rate plus seven percent. Also the default rate for underpayments has
been increased from six percent to seven and one half percent.
- Certain taxpayers and tax preparers who file using tax
software may be required to file electronically and could be subject to civil
penalties for failure to do so.
- Provisions detailing crimes applicable to the tax has been redefined to
conform to recent New York State revisions.
Who is Subject to This Tax?
The tax is imposed on every transfer of a taxicab
license or transfer of interest in a taxicab license. The transferee is
primarily liable for the tax, but if he or she does not pay it, the transferor
is liable.
A purchaser of all the assets of the business is liable for the seller’s unpaid tax, if the purchaser fails to notify the Commissioner of Finance of the proposed sale at least ten days before taking possession.
The transfer of a controlling economic interest in a taxicab license accomplished by means of the transfer of shares of stock of a corporation or interest in any other entity that owns the license is treated as a transfer of the license and is subject to the tax.
Who is Exempt from the Tax?
The following transactions are exempt from the tax:
- Transactions by or with New York State, a public
corporation, or a political subdivision of the State;
- 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).
Tax Forms and Filing Information
The transferee and the transferor must file a joint return.
NYC-TCLT Taxicab License Transfer Tax Return
Download Form (36k)
Filing Deadline
Return must be filed at the time of payment of the tax, no later than 30 days following the transfer of the license.
Tax Rates
The tax is imposed at a rate of 5 percent of the consideration paid for the transfer of the taxicab license or the transfer of the interest in the license.
"Consideration" includes the price paid and cancellation or discharge of an indebtedness or obligation. Nevertheless, the fair market value of a taxicab or property given in conjunction with the taxicab license or interest is not included in the consideration subject to tax.
Legal Authority
Local Law: Title 11, Chapter 14, Administrative Code
Enabling Act: Tax Law Section 1201(j)
