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Article 14B - NY Vehicle and Traffic Law
BUS TAXATION PRORATION AND RECIPROCITY AGREEMENT
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
(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
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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