Commercial Motor Vehicle Tax (CMVT) for TLC Vehicles

In short: The Commercial Motor Vehicle Tax (CMVT) is a New York City tax on commercial vehicles, including taxis and for-hire vehicles. It is $400 a year for a medallion taxi or an FHV. The tax year runs June 1 to May 31, and the return is due by June 20. The "owner" pays it, and that can include a driver who leases a car for 30 days or more. Who collects it depends on the vehicle: NYC Finance for medallion taxis, the NYS DMV for TC-plated cars registered in New York State, and TLC lists an $800 CMVT charge for FHVs registered out of state.

Unpaid CMVT can suspend an FHV license and block a medallion renewal. This page explains the rules; it is not tax advice. For your own situation, ask NYC Finance's CMVT unit or a tax professional.

The amounts

NYC Finance says the tax covers "commercial motor vehicles regularly used in the city to transport passengers", which "include any vehicle licensed as a taxicab or a livery that carries passengers for a fee". It is a flat tax: $400 for passenger vehicles. (Trucks and other non-passenger vehicles pay by weight.)

Part-year rules. If a non-medallion vehicle first becomes taxable on or after March 1, you pay one-quarter of the yearly tax; between December 1 and March 1, one-half. Medallion taxis get no proration: the full $400 is due whenever the vehicle is registered.

When it's due

NYC Finance's current rules: the tax year runs June 1 to May 31, and you file for the year by June 20. If you acquire a taxable vehicle after the tax year begins, file within two days of acquiring it. For medallion taxis, Finance says the old semi-annual periods are gone and "the full $400 payment will be due by June 20".

Who collects it

The new FHV license page lists "$800 – CMVT Tax for vehicles registered in NJ, PA or CT". The renewal page says "for vehicles registered outside of New York City". An FHV license lasts two years, and two years at $400 is $800, but that is our arithmetic; TLC doesn't explain the figure. The two pages also differ on which cars it covers. If your FHV is registered outside New York City, ask TLC before you renew whether the $800 applies.

Who counts as the "owner"

NYC Finance says "the owner of the vehicle pays" the CMVT, and "owner" includes:

• a buyer under a conditional sale (lease-to-own) or similar agreement, and
• a lessee, licensee or bailee with exclusive use of the vehicle for 30 days or more.

For a vehicle leased for fewer than 30 days, the owner, not the lessee, pays.

What happens if it isn't paid

• FHVs. Rule 59A-14(c) says the owner must pay the CMVT, plus any extra amount NYC Finance tells TLC is due and unpaid. The penalty is a $400 fine and suspension until compliance (chapter 59). A suspension stops the car from working, and if it drags on, the 60-day non-use rules can follow.
• Medallion taxis. Rule 58-08(i) makes CMVT payment "a condition to issuance of a License, including a renewal License". TLC will deny a renewal if CMVT is unpaid, and a renewal filed while it is unpaid counts as not filed on time (chapter 58). TLC's medallion page tells owners to pay outstanding CMVT before renewing and to bring the CMVT receipt to a hack-up inspection.

How to pay (medallion taxis)

NYC Finance's options:

1. Online through DOF Business Tax e-Services: free by e-check; credit card has a 2% fee. You also can pay at nyc.gov/CityPay with the first 13 digits of the notice number and the billing ZIP code.
2. By mail with your bill coupon: NYC Department of Finance, CMVT, PO Box 3644, New York, NY 10008-3644.
3. Keep proof. Medallion taxis no longer get a windshield tax stamp. Your proof is the emailed receipt or the cancelled check.

Finance mails the return by June 1 each year. If you don't get it, you are still responsible for filing.

New car, new plates, or a mid-year change

If you register a new vehicle or transfer plates, NYC Finance says to manage the CMVT account through its e-Services site (nyc.gov/eservices), its CMVT unit, or the Manhattan Business Center at 66 John Street. Have a copy of your state registration receipt and your EIN or SSN ready. Remember the two-day filing rule for vehicles acquired after June 1, and the quarter- and half-year amounts for non-medallion vehicles that become taxable late in the tax year.

For an FHV, a new car usually means a vehicle transfer at TLC as well. Plan both at the same time so the license is not suspended for an unpaid tax while you change cars.

Exemptions rarely fit TLC cars. Finance's exemptions cover vehicles used only for funerals or school and camp trips, nonprofits, car dealers, governments and international organizations. A taxi or livery carrying passengers for a fee is named as taxable.

Related costs to plan for

CMVT is one of several yearly costs of a TLC vehicle, along with the license fee, inspections and insurance. See renewing FHV plates, do WAV owners pay TLC license fees?, and TLC insurance carriers. For how old a vehicle can be, see TLC vehicle retirement age; for the fleet size behind these taxes, see TLC licensed vehicle statistics. Short definition: CMVT in the glossary.