Parking Tax Exemption

RCNY tit. 19, ch. 19

in effect

19 RCNY § 19-01 Definitions.

§ 19-01 Definitions. When used in these rules the following terms shall have the meanings herein indicated: Individual resident. "Individual resident" means a natural person who maintains a permanent place of abode in the County of New York which is such person's primary residence. Motor vehicle. "Motor vehicle" means a motor vehicle registered by an individual resident pursuant to the vehicle and traffic law at the address of his or her primary residence in New York County or, in the case of a leased vehicle, registered pursuant to the vehicle and traffic law and leased to an individual resident at the address of his or her primary residence in New York County, and, in either case, which is not used in carrying on any trade, business or commercial activity. The term includes passenger and suburban vehicles, trucks, motorcycles and recreational vehicles. Examples: Example 1: A passenger motor vehicle which is owned and used by an individual resident for family or personal use, and for traveling to and from his or her place of employment, but not used in carrying on a trade, business or other commercial activity, may qualify for exemption. Example 2: A delivery van used in carrying on the individual's trade or business does not qualify for exemption. Example 3: A passenger motor vehicle leased for three years by an individual resident from a leasing company located in Kings County and registered pursuant to the vehicle and traffic law in the name of the leasing company at the address of the leasing company in Kings County will qualify for exemption provided the lease shows the address of the individual resident's primary residence in New York County and the vehicle is not used in the individual resident's trade or business. Example 4: A passenger motor vehicle leased for three years by an individual resident from a leasing company located in New Jersey and registered in New Jersey in the name of the leasing company does not qualify for exemption because the vehicle is not registered pursuant to the vehicle and traffic law which requires a vehicle operated in New York State by a resident to be registered in New York State. A permanent place of abode. "A permanent place of abode" means a dwelling place permanently maintained by an individual, whether or not owned by him or her. It will generally include a dwelling place owned or leased by his or her spouse. A place of abode is not deemed permanent if it is maintained only during a temporary stay for the accomplishment of a particular purpose. Primary residence. "Primary residence" means the dwelling place which is a permanent place of abode and where an individual resides or intends to reside more than 183 days in the 12 months following the date of the application for exemption. In determining whether a dwelling place is a primary residence the factors that may be examined include whether the individual identifies that dwelling place as his place of residence in tax returns, for voting registration and motor vehicle registration purposes, on his or her driver's license, or on other documents filed with a public agency. Utility bills (electric, gas or telephone) may also be examined to determine whether a dwelling place is a primary residence. Examples: Example 1: If an individual resides in New York County during Monday through Friday of each week, and maintains a weekend home outside the City, the New York County residence will be deemed primary if more than 183 days are spent there, and in addition, the individual uses that address in filing tax returns and registering his motor vehicle. Example 2: Where an individual's family resides outside the City, but the individual stays in an apartment in New York County less than 183 days, votes outside the City and files non-resident City tax returns, the New York County apartment will not be deemed a primary residence. Principal location for the parking, garaging or storing of a motor vehicle. "Principal location for the parking, garaging or storing of a motor vehicle" means the parking facility where the motor vehicle is parked, garaged or stored the majority of the time. If an individual resident garages a motor vehicle on a monthly or longer term basis both near his or her primary residence and his or her place of employment for an approximately equal amount of time, then the parking facility near the primary residence will be deemed the principal location. Only parking facilities paid for on a monthly or longer term basis qualify for exemption. If services are paid for on a daily or weekly basis for a period of 30 or more days, the exemption does not apply. A written agreement is not required as long as adequate proof of payment on a monthly or longer term basis exists (for example, invoices and cancelled checks). Vendor. "Vendor" means a person operating a garage, parking lot, or other place of business engaged in providing parking, garaging or storing services for motor vehicles.

19 RCNY § 19-02 Eligibility for Exemption.

§ 19-02 Eligibility for Exemption. (a) An individual resident is required to apply for and be issued an exemption certificate to be exempt from the additional 8% tax on the amount paid for the services of parking, garaging or storing of motor vehicles. (b) An exemption certificate will be issued when services are rendered on a monthly or longer term basis at the principal location for the parking, garaging or storing of a motor vehicle owned by an individual resident and registered at his or her primary residence in the County of New York or leased for a term of one year or more by an individual resident and registered pursuant to the vehicle and traffic law.

19 RCNY § 19-03 Exemption Certificate; Obligations of Individual Residents and Vendors.

§ 19-03 Exemption Certificate; Obligations of Individual Residents and Vendors. (a) To apply for an exemption certificate, a completed application, on a form prescribed by the Commissioner of Finance, must be filed with the Commissioner of Finance at the address designated on the form. (b) An exemption certificate will remain effective for a period of up to two years from the date of issuance of the certificate and will expire on the date designated thereon by the Commissioner, unless voided earlier because of a change of parking location or primary residence, sale or transfer of the vehicle for which a certificate was issued or other reason for loss of eligibility for exemption (e.g., using vehicle for business purposes). (c) A certificate will be issued with respect to a specific motor vehicle and a specific parking location only. If an individual resident sells or transfers the vehicle for which a certificate was issued, changes parking location or primary residence, the certificate becomes void and application must be made for a new certificate. (d) The exemption certificate must be submitted to the vendor at the principal location for the parking, garaging or storing of a motor vehicle. A vendor is required to collect the additional parking tax on receipts from parking, storing or garaging a motor vehicle received prior to the date that the certificate is submitted for such vehicle. Receipts for the service of parking, garaging or storing a vehicle on a monthly or longer term basis paid to a vendor by an individual resident on or after the date that the resident submits an exemption certificate to the vendor will be exempt from the additional 8% tax to the extent that such receipts are for such services rendered on or after the first day of the month in which the exemption certificate is issued to the resident. (e) (1) If an individual resident, because of change of residence, or commercial use of the motor vehicle, or for any other reason, loses eligibility for exemption after receiving a certificate, he or she is required to immediately notify both the vendor and the Department of Finance in writing. (2) A vendor who receives notification from an individual resident or the Department of Finance that the individual resident no longer qualifies for exemption from the additional 8% tax must collect the additional parking tax on all receipts for parking, garaging or storage services rendered to that individual resident that the vendor receives on or after the date on which the vendor received such notification, unless and until the individual resident subsequently submits a new exemption certificate to the vendor. (f) A vendor is required to retain all certificates, which must be offered for inspection and examination at any time upon demand by the Commissioner of Finance or his duly authorized agents or employees. A certificate shall be preserved for a period of three years from the due date of the return on which the vendor reports the tax for the last effective month of such certificate, except that the Commissioner may consent to the destruction of the certificates within that period or may require that they be kept longer. Examples: Example 1: T is an individual resident. T garages a motor vehicle on an annual basis near T's primary residence. Payment for the garaging service is required monthly. The monthly payment period begins on the first day of the month, but T has until the 15th day of the month to pay for the garaging service. T applies for an exemption certificate, which is issued to T on October 10th. The exemption is effective for payments made to the vendor on or after the date on which T submits the certificate to the vendor with respect to parking, garaging or storing services rendered on or after October 1. If T pays for the garaging service on October 11th and submits the certificate on October 12th, the entire amount paid on October 10th is subject to the additional 8% parking tax because the vendor received the payment before T submitted the certificate. Example 2: The facts are the same as in example (1), except that T submits the certificate and payments for September and October to the vendor on October 13th. The payment for October is exempt from the additional 8% parking tax because T paid the vendor on or after the day that T submitted the certificate to the vendor, and the certificate is effective as of the first day of the month in which issued. However, the payment for September is subject to the additional 8% tax because it applies to services rendered prior to October 1, the effective date of the certificate, even though the vendor received payment for September with the exemption certificate.

19 RCNY § 19-04 Penalties, Refunds.

§ 19-04 Penalties, Refunds. (a) Any person not meeting the requirements for exemption who wrongfully obtains or uses an exemption certificate shall, in addition to the tax due, be liable for a penalty of not more than one hundred dollars if such certificate was obtained or used through negligence, and a penalty of not more than five hundred dollars if such certificate was obtained or used through fraud. The term "uses" includes failure to notify the vendor and the Department of Finance of change of parking location or primary residence, sale or transfer of the vehicle for which a certificate was issued, commercial use or other reason for loss of eligibility for exemption. These penalties shall be in addition to any penalties imposed under Section 1145 of Article 28 of the New York State Tax Law. (b) An individual resident shall not be entitled to a refund or credit with respect to any amount of tax paid to a vendor prior to the date such individual resident submitted to the vendor a valid exemption certificate.

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-38150Fetched: 10/24/2026