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New York: Hail a Car For-Hire Tax


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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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.