New York: Hail a Car For-Hire Tax
- Sales Tax News
- May 31, 2012 | Will Frei
A "hail vehicle trip" is a trip initiated by a passenger hailing a for-hire vehicle from the street. For-hire vehicles include black cars, limousines and community cars. They do not include taxicabs, coaches, commuter vans or authorized buses.
Hail bases--the bases that dispatch the vehicles--will collect the tax from passengers by adjusting the rates and meters in their vehicles to reflect the 50-cent tax. Bases must file returns for the 50-cent tax and remit the money quarterly (see the schedule here).
While hail vehicle trips within the designated limits are subject to the 50-cent tax, they are exempt from the sales tax imposed on transportation services. However, a trip initiated by a customer calling a hail base is not subject to the 50-cent tax; though it may be subject to the sales tax on transportation services.