New York IFTA for Truckers & Carriers - Leasing
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6/9/20261 min read
A leasing agreement should detail which party – lessor or lessee – is responsible for reporting fuel use taxes.
The agreement should specifically define the period of time covered by the agreement.
Both the lessor and the lessee should keep a copy of the agreement.
If you lease a qualified motor vehicle, without a driver, from a rental company that has an IFTA license and decals on the vehicle, you are not required to obtain an IFTA license and decals for that vehicle.
However, if the lease is for 30 days or more, you may choose to obtain your own IFTA license and decals for the vehicle.
As the licensee, you would be required to report and pay the fuel use taxes.
In this situation, the vehicle may be IFTA licensed by both you and the owner of the vehicle, and may have two sets of decals displayed on it.
If you lease a qualified motor vehicle from an independent contractor, the independent contractor is required to get an IFTA license and decals for the vehicle.
However, if the lease is for 30 days or more, you and the owner of the vehicle have the option of designating which of you will get the IFTA license and decals for the vehicle, as well as report and pay the fuel use taxes.
In the absence of a written leasing agreement, or if the agreement is silent regarding responsibility for reporting and paying fuel use taxes, you, the lessee, will be responsible for reporting and paying the fuel use taxes.
Source: New York State Department of Taxation and Finance (NYS DTF)