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New York: Hail a Car For-Hire Tax

  • May 31, 2012 | Will Frei

Starting June 1, 2012, New York will impose a 50-cent tax on all "hail vehicle trips" that begin in New York City and end anywhere in the Metropolitan Commuter Transportation District (MCTD). 

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.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.