New York State Law

Vehicle and Traffic Law

Consolidated Laws of New York's VTL code

Article 14B - NY Vehicle and Traffic Law


Section Description
406 Bus taxation proration agreement.
407 Administrator defined.
408 Administration.
409 Notice of withdrawal.
   S 406. Bus  taxation  proration  agreement. The bus taxation proration
  agreement  is  hereby  enacted  into  law  and  entered  into  with  all
  jurisdictions  legally  joining  therein  in  the  form substantially as
                     ARTICLE I. Purposes and Principles.
    Section 1. Purposes of Agreement. It is the purpose of this  agreement
  to  set  up  a system whereby any contracting state may permit owners of
  fleets of busses  operating  in  two  or  more  states  to  prorate  the
  registration  of  the  busses  in such fleets in each state in which the
  fleets operate on the basis of the proportion of miles  operated  within
  such state to total fleet miles, as defined herein.
    Section  2.  Principle  of  Proration  of  Registration.  It is hereby
  declared that in making this agreement the contracting states adhere  to
  the  principle  that  each  state should have the freedom to develop the
  kind of highway user  tax  structure  that  it  determines  to  be  most
  appropriate  to itself, that the method of taxation of interstate busses
  should not be a determining factor in developing its user tax structure,
  and that annual taxes or other taxes of the fixed fee type  upon  busses
  which are not imposed on a basis that reflects the amount of highway use
  should   be   apportioned   among  the  states,  within  the  limits  of
  practicality, on the basis of vehicle miles traveled within each of  the
                          ARTICLE II. Definitions.
    (a)  State.  State  shall include the states of the United States, the
  District  of  Columbia,  the  territories  of  the  United  States,  the
  Provinces of Canada, and the States, Territories and Federal District of
    (b) Contracting State. Contracting state shall mean a state which is a
  party to this agreement.
    (c)  Administrator. Administrator shall mean the official or agency of
  a state administering the fee involved, or, in the case of proration  of
  registration,  the  official  or  agency  of  a  state administering the
  proration of registration in that state.
    (d) Person. Person shall include any individual, firm,  copartnership,
  joint  venture, association, corporation, estate, trust, business trust,
  receiver, syndicate, or any other group or combination acting as a unit.
    (e) Base State. Base state shall mean the state from or in  which  the
  bus  is  most  frequently  dispatched,  garaged,  serviced,  maintained,
  operated, or otherwise controlled, or also in the case of  a  fleet  bus
  the  state  to  which  it  is allocated for registration under statutory
  requirements.   In order that this section  may  not  be  used  for  the
  purpose  of  evasion  of  registration  fees,  the administrators of the
  contracting states may make the final decision as  to  the  proper  base
  state,  in  accordance  with Article III (h) hereof, to prevent or avoid
  such evasion.
    (f) Bus. Bus shall mean any motor vehicle of a bus type engaged in the
  interstate transportation of passengers and subject to the  jurisdiction
  of  the Interstate Commerce Commission, or any agency successor thereto,
  or one or more state regulatory agencies concerned with  the  regulation
  of passenger transport.
    (g)  Fleet.  As  to  each  contracting state, fleet shall include only
  those busses which actually travel a portion of  their  total  miles  in
  such state. A fleet must include three (3) or more busses.
    (h)  Registration.  Registration  shall mean the registration of a bus
  and the payment of annual fees and taxes as set forth in or pursuant  to
  the laws of the respective contracting states.
    (i)  Proration  of  registration. Proration of registration shall mean
  registration of fleets of busses in accordance with Article IV  of  this
    (j)  Reciprocity.  Reciprocity shall mean that each contracting state,
  to  the  extent  provided  in  this  agreement,  exempts  a   bus   from
  registration and registration fees.
                      ARTICLE III. General Provisions.
    (a)  Effect on Other Agreements, Arrangements, and Understandings.  On
  and after  its  effective  date,  this  agreement  shall  supersede  any
  reciprocal or other agreement, arrangement, or understanding between any
  two or more of the contracting states covering, in whole or in part, any
  of  the  matters covered by this agreement; but this agreement shall not
  affect any reciprocal or other agreement, arrangement, or  understanding
  between  a  contracting  state and a state or states not a party to this
    (b) Applicability to Exempt Vehicles. This agreement shall not require
  registration in a contracting state of any vehicles which are  in  whole
  or  part  exempt from registration under the laws or regulations of such
  state without respect to this agreement.
    (c) Inapplicability to Caravaned Vehicle. The benefits and  privileges
  of this agreement shall not be extended to a vehicle operated on its own
  wheels,  or  in  tow  of a motor vehicle, transported for the purpose of
  selling or offering the same for  sale  to  or  by  any  agent,  dealer,
  purchaser, or prospective purchaser.
    (d)  Other  Fees  and Taxes. This agreement does not waive any fees or
  taxes charged or levied by any state in connection with the ownership or
  operation of vehicles other than registration fees  as  defined  herein.
  All  other fees and taxes shall be paid to each state in accordance with
  the laws thereof.
    (e) Statutory Vehicle Regulations.  This agreement shall not authorize
  the operation of a vehicle in any contracting state contrary to the laws
  or regulations thereof, except  those  pertaining  to  registration  and
  payment  of  fees; and with respect to such laws or regulations, only to
  the extent provided in this agreement.
    (f) Violations. Each contracting state reserves the right to withdraw,
  by order of the administrator thereof, all or any part of  the  benefits
  or  privileges  granted pursuant to this agreement from the owner of any
  vehicle or fleet of vehicles operated in violation of any  provision  of
  this  agreement.  The administrator shall immediately give notice of any
  such violation and withdrawal of any such benefits or privileges to  the
  administrator  of each other contracting state in which vehicles of such
  owner are operated.
    (g) Cooperation. The administrator of each of the  contracting  states
  shall   cooperate  with  the  administrators  of  the  others  and  each
  contracting state hereby agrees to furnish such aid  and  assistance  to
  each  other  within  its  statutory  authority as will aid in the proper
  enforcement of this agreement.
    (h) Interpretation. In any dispute between or among contracting states
  arising   under   this   agreement,   the   final   decision   regarding
  interpretation of questions at issue relating to this agreement shall be
  reached  by  joint  action of the contracting states, acting through the
  administrator  thereof,  and  shall  upon  determination  be  placed  in
    (i)  Effect of Headings. Article and section headings contained herein
  shall not be deemed to govern, limit, modify, or in  any  manner  affect
  the  scope,  meaning, or intent of the provisions of any article or part
    (j) Entry into Force. This agreement shall enter into force and become
  binding between  and  among  the  contracting  states  when  enacted  or
  otherwise  entered  into  by  any two states. Thereafter, it shall enter
  into force and become binding with respect to  any  state  when  enacted
  into  law  by such state.   If the statutes of any state so authorize or
  provide, such  state  may  become  party  to  this  agreement  upon  the
  execution  thereof  by  an  executive or administrative official thereof
  acting on behalf of and for such state.
                   ARTICLE IV. Proration of Registration.
    (a) Applicability. Any owner of a fleet may  register  the  busses  of
  said  fleet  in  any  contracting  state  by  paying to said state total
  registration fees in an amount equal to that obtained  by  applying  the
  proportion  of in-state fleet miles divided by the total fleet miles, to
  the  total  fees  which  would  otherwise  be   required   for   regular
  registration of each and all of such vehicles in such contracting state.
    All  fleet  pro-rata registration fees shall be based upon the mileage
  proportions of the fleet during the period of twelve  months  ending  on
  August  thirty-first next preceding the commencement of the registration
  year for which registration is sought, except, that mileage  proportions
  for  a  fleet  not  operated  during  such  period  in  the  state where
  application  for  registration  is  made  will  be  determined  by   the
  administrator  upon  the  sworn application of the applicant showing the
  operations  during  such  period  in  other  states  and  the  estimated
  operations  during  the  registration  year  for  which  registration is
  sought, in the state in which  application  is  being  made;  or  if  no
  operations  were  conducted  during  such period a full statement of the
  proposed method of operation.
    If any busses operate in two or more states which permit the proration
  of registration on the basis of a fleet of busses consisting of a lesser
  number of vehicles than provided in Article II (g), such  fleet  may  be
  prorated as to registration in such states, in which event the busses in
  such  fleet  shall  not be required to register in any other contracting
  states if each such vehicle is  registered  in  some  contracting  state
  except  to  the  extent  it  is  exempt from registration as provided in
  Article III (b).
    If the administrator of any state determines, based on his  method  of
  the  operation  thereof, that the inclusion of a bus or busses as a part
  of a fleet would adversely affect the proper fleet fee which  should  be
  paid  to  his  state,  having due regard for fairness and equity, he may
  refuse to permit any or all of such busses to be included in  his  state
  as a part of such fleet.
    (b)  Total  Fleet  Miles.  Total  fleet  miles,  with  respect to each
  contracting state, shall mean the total miles operated by the fleet  (1)
  in  such state, (2) in all other contracting states, (3) in other states
  having proportional registration provisions, (4) in  states  with  which
  such  contracting state has reciprocity, and (5) in such other states as
  the administrator determines should be included under the  circumstances
  in order to protect or promote the interest of his state; except that in
  states  having  laws  requiring  proration  on  the basis of a different
  determination  of  total  fleet  miles,  total  fleet  miles  shall   be
  determined on such basis.
    (c)  Leased  Vehicles. If a bus is operated by a person other than the
  owner as a part of a fleet which is subject to the  provisions  of  this
  article, then the operator of such fleet shall be deemed to be the owner
  of said bus for the purposes of this article.
    (d)  Extent  of  Privileges.  Upon  the  registration  of a fleet in a
  contracting state pursuant to this article, each bus in the fleet may be
  operated in both interstate and  intrastate  operations  in  such  state
  except as provided in Article III (e).
    (e)  Application  for  Proration.  The  application  for  proration of
  registration shall be made in each contracting state upon  substantially
  the  application forms and supplements authorized by joint action of the
  administrators of the contracting states.
    (f) Issuance of Identification. Upon  registration  of  a  fleet,  the
  state  which  is  the base state of a particular bus of the fleet, shall
  issue the required license plates and registration card for such bus and
  each contracting state in which the fleet of which such bus is  a  part,
  operates, shall issue a special identification identifying such bus as a
  part  of  a  fleet  which  has  fully  complied  with  the  registration
  requirements of such state. The required  license  plates,  registration
  cards  and identification shall be appropriately displayed in the manner
  required by or pursuant to the laws of each respective state.
    (g) Additions to Fleet. If any bus is added to a prorated fleet  after
  the  filing  of  the  original  application,  the  owner  shall  file  a
  supplemental application.  The owner shall register  such  bus  in  each
  contracting  state  in  like  manner as provided for busses listed in an
  original  application  and  the  registration  fee  payable   shall   be
  determined  on the mileage proportion used to determine the registration
  fees payable for busses registered under the original application.
    (h) Withdrawals from Fleet. If any bus is withdrawn  from  a  prorated
  fleet  during  the  period for which it is registered or identified, the
  owner shall notify the administrator  of  each  state  in  which  it  is
  registered  or  identified,  of  such  withdrawal  and  shall return the
  plates, and registration card or identification as may be required by or
  pursuant to the laws of the respective states.
    (i) Audits. The administrator of each contracting state shall,  within
  the  statutory  authority  of  such  administrator, make any information
  obtained upon an audit of records of  any  applicant  for  proration  of
  registration  available  to  the administrators of the other contracting
    (j) Errors in Registration. If it is determined by  the  administrator
  of a contracting state, as a result of such audits or otherwise, that an
  improper  fee  has been paid his state, or errors in registration found,
  the administrator may require the fleet  owner  to  make  the  necessary
  corrections in the registration of his fleet and payment of fees.
                           ARTICLE V. Reciprocity.
    (a)  Grant  of  Reciprocity.  Each  of  the  contracting states grants
  reciprocity as provided in this article.
    (b) Applicability. The provisions of this agreement  with  respect  to
  reciprocity  shall  apply  only to a bus properly registered in the base
  state of the bus, which state must be a contracting state.
    (c) Non-applicability  to  Fleet  Busses.    The  reciprocity  granted
  pursuant  to  this article shall not apply to a bus which is entitled to
  be registered or identified as part of a prorated fleet.
    (d) Extent of Reciprocity. The reciprocity granted  pursuant  to  this
  article  shall  permit  the interstate operation of a bus and intrastate
  operation which is incidental to a trip of such bus involving interstate
    (e) Other Agreements. Nothing in this agreement shall be construed  to
  prohibit  any  of  the  contracting  states  from entering into separate
  agreements with each other for the granting of temporary permits for the
  intrastate operation of vehicles registered in the other state;  nor  to
  prevent  any  of the contracting states from entering into agreements to
  grant reciprocity for intrastate operation  within  any  zone  or  zones
  agreed upon by the states.
                    ARTICLE VI. Withdrawal or Revocation.
    Any  contracting  state  may  withdraw from this agreement upon thirty
  days written notice to each other contracting state, which notice  shall
  be  given  only after the repeal of this agreement by the legislature of
  such state, if adoption was by legislative act, or after renunciation by
  the appropriate administrative official of such contracting state if the
  laws thereof empower him so to renounce.
                 ARTICLE VII. Construction and Severability.
    This compact shall be liberally construed  so  as  to  effectuate  the
  purposes  thereof. The provisions of this compact shall be severable and
  if any phrase, clause, sentence or provision of this compact is declared
  to be contrary to the constitution of any state or of the United  States
  or  the  applicability  thereof  to  any  government,  agency, person or
  circumstance is held invalid, the validity  of  the  remainder  of  this
  compact  and the applicability thereof to any government, agency, person
  or circumstance shall not be affected thereby. If this compact shall  be
  held contrary to the constitution of any state participating herein, the
  compact  shall remain in full force and effect as to the remaining party
  states and in full force and effect as to the state affected as  to  all
  severable matters.

   S 407. Administrator   defined.   As  used  in  this  agreement,  with
  reference  to  this  state,  the  term  administrator  shall  mean   the
  commissioner of motor vehicles.

  S 408. Administration.  The  administrator  of  the agreement for this
  state shall have the power to make such exemptions from the coverage  of
  the  agreement as may be appropriate and to make such changes in methods
  for the reporting of any information required to be  furnished  to  this
  state  pursuant to the agreement as, in his judgment, shall be suitable;
  provided that any such exemptions or changes shall not  be  contrary  to
  the  purpose set forth in article one of the agreement and shall be made
  in order to permit the continuance of uniformity of practice  among  the
  contracting  states with respect to busses. Any such exemption or change
  shall be made by rule or regulation and shall not  be  effective  unless
  made  by  the same procedure required for other rules and regulations of
  his department. If not otherwise covered by statute,  the  administrator
  may  make  provision  for  publication  of  the  rules  and  regulations
  contemplated by this section.

  S 409. Notice of withdrawal. Unless otherwise provided in any statute
  withdrawing this state from participation in the agreement, the governor
  shall be the officer to give notice of withdrawal therefrom.

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