Motor Carrier Registration

Excise Tax Division

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July 2014

Excise Tax

• Overview• Registration: IFTA & IN Motor Carriers• Denial of Credentials• License and Decal Issuance• Annual Renewal Process• Temporary Trip Permits and IFTA Temporary

Decal Permits• Lease Agreements and Independent Contractors• Power of Attorney and Out-of-Business 2

Topics

Overview

• IN – North Carolina Highway Fuel Use Tax (Intrastate)

• IFTA – International Fuel Tax Agreement (Interstate)

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IN (Intrastate Motor Carrier)North Carolina motor carriers are required to be

licensed as an Intrastate Carrier if:• You have a qualified vehicle licensed with the

North Carolina Division of Motor Vehicles.• You maintain the operational control and

records for qualified vehicles in North Carolina or can make those records available in North Carolina.

• You have qualified motor vehicles which travel only on North Carolina highways.

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IFTA (Interstate Motor Carrier)

North Carolina is your base jurisdiction for IFTA licensing and reporting if:

• You have a qualified vehicle licensed with the North Carolina Division of Motor Vehicles.

• You maintain the operational control and records for qualified vehicles in North Carolina or can make those records available in North Carolina.

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• You have qualified motor vehicles which actually travel on North Carolina highways

and• You operate in at least one other IFTA

jurisdiction.

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IFTA (Interstate Motor Carrier)(continued)

Registration: IFTA & IN Motor Carriers

Who should register?• Any motor carrier based in North Carolina and

operating one (1) or more qualified motor vehicle(s) should file an Application for License and Decals in North Carolina.

Is there a fee to register?• There are no fees for an IFTA or IN license and

decals.7

Registration: IFTA & IN Motor Carriers(continued)

How does a motor carrier register?• Complete and submit Form Gas-1274, Motor

Carrier Application for License & Decals.• Form Gas-1274 must be submitted by paper.• The application must contain all requested

information to receive a license and decals. Missing information may delay processing of the application.

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Registration: IFTA & IN Motor Carriers(continued)

• Once the application is processed by the Department, the proper license and decals will be issued and mailed to the motor carrier.

• Download Form Gas-1274 from our website at www.dornc.com.– Select Tax Forms, Download Forms, IFTA, and then select Form Gas-1274.

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Denial of Credentials

A motor carrier will not be issued credentials if any of the following reasons apply:

• The motor carrier had a registration issued by the Department canceled by the Secretary for cause.

• The motor carrier was previously licensed in another jurisdiction and the motor carrier’s license is under suspension or has been revoked.

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Denial of Credentials (continued)• The motor carrier has been convicted of fraud or

misrepresentation.

• The motor carrier has been convicted of any other offense that indicates the motor carrier may not comply with the motor carrier statutes.

• The motor carrier failed to remit payment for any tax debt due the Department.

• The motor carrier failed to file a return due the Department.

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License and Decals Issuance

• A license will be issued to each motor carrier. A photocopy of the license must be maintained in the cab of each qualified motor vehicle to which decals have been affixed.

• The original license issued by the Division should be kept in a safe place. Licenses are valid for one calendar year, from January 1 through December 31.

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• One set (2) decals will be issued for each qualified motor vehicle.

• The decals must be placed on the exterior portion of both sides of the cab.

• A motor carrier may request extra decals throughout the year for qualified motor vehicles that have been added, or to replace damaged or lost decals.

License and Decals Issuance (continued)

• Additional license and decals can be requested electronically using the Department’s website or by submitting Form Gas-1274A by fax, mail, or in person at the Excise Tax Division office in Raleigh.

• Form Gas-1274A must be completed in its entirety and must specify the additional number and type of decals requested.

• Decals cannot be requested by telephone.

License and Decals Issuance(continued)

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Maintain Decal Records

• Records should be maintained of all decals received and used.

• The licensee must keep all unused decals for a period of four (4) years for auditing purposes.

• Audits will include the verification of all decals ordered and received.

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Important

• License and decals cannot be transferred to any other business.

• If you sell a vehicle, remove the set of decals from the vehicle. They cannot be transferred to the new owner.

• If you purchase a vehicle with a decal already affixed, remove the decal because it is not registered to your account and is not valid.

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Civil PenaltiesA penalty may be assessed for either of the following:

•Inability to account for decals issued ($100.00 per decal) and/or you may be subject to the purchase of a trip permit

or•Unauthorized use of a decal by displaying a decal on a vehicle operated by a motor carrier to whom the decal is not issued ($1,000.00 per decal).

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Annual Renewal Process

• The 2014 North Carolina licenses and decals expire on December 31, 2014.

• In the fall of each year, the Division mails applications to renew IFTA and IN licenses and decals for the upcoming year.

• To ensure that your license and decals are renewed timely, please submit your application for renewal via the Department’s website, fax, or by mail as early as possible.

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• The most efficient method for renewing your license and decals is to order your credentials electronically by accessing your Motor Carrier account through our IFTA/Intrastate web application at:

www.dornc.com/electronic/ifta.html

• If you have not yet set up your Motor Carrier online account and need assistance, please contact us at 877-308-9092.

Annual Renewal Process (continued)

Annual Renewal Process (continued)

The benefits of the online application are:

• No paper renewal application to submit

• Confirmation that the renewal request has been received, including the submission date

• Faster and more efficient processing

• Ability to order additional sets of decals as needed

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• Each taxpayer is required to be in compliance with the Department of Revenue.

• If our records show any outstanding tax liabilities or delinquent returns owed to the Department, your decals will not be released.

• You must have a current registration with the Division of Motor Vehicles.

• All corporations must be active with the Secretary of State to avoid denial of credentials.

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Reminders

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If you have been filing “all North Carolina operations” and/or “no operations” on your IFTA quarterly returns during the previous four quarters, the following may occur:

•We may change your account to Intrastate only and not issue an IFTA license and decals

or•We may contact you and require additional information before we issue a license and decals.

Reminders (continued)

• If you are an IFTA carrier and have not filed all returns due or have not paid all outstanding assessments, your account may be in a revoked status.

• If your account is in a revoked status, a license and decals will not be issued until the account is brought into compliance.

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Reminders (continued)

Reminders (continued)

•If you are uncertain about your account status, please call the Division as soon as possible to ensure that processing your request for license and decals will not be delayed.

•There is no grace period or extension of time for renewing licenses and decals.

•License and decal renewal requests will not be accepted by phone.

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License Suspension and RevocationAn IFTA license may be suspended and/or revoked for any of the following reasons:

•Failure to file an IFTA quarterly tax return•Failure to remit all taxes due all member jurisdictions•Failure to pay an audit assessment•Failure to timely request a review of an audit assessment which has not been paid because the amount is disputed

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• The Department will notify the North Carolina Division of Motor Vehicles and all member jurisdictions when a suspension or revocation has occurred or has been released.

• It is unlawful for carriers to operate vehicles under a suspended or revoked license, as the license and decals are no longer valid.

• Temporary trip permits must be purchased if a vehicle continues to be operated.

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Unlawful Operations

Temporary Trip Permits• If a license and decals are not issued or have been

revoked, you will need to obtain temporary trip permits.

• Temporary trip permits are issued to motor carriers who do not have proper credentials to travel in North Carolina.

• Temporary trip permits allow travel in North Carolina only and satisfy only North Carolina motor fuel tax requirements for operating without a permanent fuel permit (decal).

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• Temporary trip permits are issued by permitting services.

• Prior arrangements must be made with a permitting service; otherwise, you may be penalized $100.00 for not having proper decals.

• The purchase price for Temporary Trip Permits is $50.00 each and they are valid for three days. A permitting service may charge additional fees.

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Temporary Trip Permits (continued)

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• Intrastate motor carriers who travel infrequently to other jurisdictions may get temporary trip permits for jurisdictions outside North Carolina rather than registering for an IFTA license and decals and filing required quarterly IFTA returns.

• Motor carriers must contact other jurisdictions individually if authorization is needed to operate in other jurisdictions.

Temporary Trip Permits (continued)

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• IFTA temporary decal permits are only issued to motor carriers that are currently registered with the Department as an IFTA motor carrier. The IFTA account must be in compliance to receive IFTA temporary decal permits.

• IFTA temporary decal permits allow motor carriers to operate in all IFTA member jurisdictions. However, the motor carrier must have a copy of its IFTA license in the vehicle in addition to the temporary permit.

IFTA Temporary Decal Permits

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• All miles traveled under an IFTA temporary decal permit must be included on the IFTA tax return.

• IFTA temporary decal permits are valid for 30 days and there is no charge for an IFTA temporary decal permit.

• Requests may be made by phone, mail or fax.• IFTA temporary decal permits may be

transmitted by fax to the location of the vehicle.

IFTA Temporary Decal Permits(continued)

IFTA Temporary Decal Permits(continued)

• North Carolina IFTA temporary decal permits are only issued Monday through Friday from 8:00 a.m. to 5:00 p.m. by the North Carolina Department of Revenue Excise Tax Division.

• North Carolina IFTA carriers who need temporary IFTA decal permits during non-business hours must purchase temporary trip permits.

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Lease AgreementsLess than 30 Days

(General Rule)

A lessor (the person who owns the property that is rented) who is regularly engaged in the business of leasing or renting motor vehicles, without drivers, for compensation for a period of 29 days or less is the motor carrier and will report and pay the fuel use tax owed unless the following two conditions are met:

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• The lessor has a written rental contract which designates the lessee (the person using the property that is rented) as the party responsible for reporting and paying the fuel use tax

and • The lessor has a copy of the lessee’s IFTA fuel tax

license which is valid for the term of the rental.

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Lease AgreementsLess than 30 Days

(continued)

Lease Agreements30 Days or More(General Rule)

A lessor who is regularly engaged in the business of leasing or renting motor vehicles, without drivers, for compensation for a period of 30 days or more is deemed to be the motor carrier, is issued a license, and reports the fuel use tax owed unless the lease agreement states otherwise.

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In the case of a person leasing a qualified motor vehicle from an independent contractor for less than 30 days, the independent contractor is considered the motor carrier and will report and pay all fuel use tax owed.

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Independent ContractorsLeases of Less than 30 Days

• In the case of a person leasing a qualified motor vehicle from an independent contractor for 30 days or more, the parties may designate which party will be the motor carrier and therefore responsible for reporting and paying the fuel use tax owed.

• In the absence of a written agreement or contract, or if the document is silent regarding responsibility for reporting and paying the fuel use tax, the lessee is considered the motor carrier.

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Independent ContractorsLeases of 30 Days or More

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For your protection and the business’s protection, if you are not the business owner or corporate officer of the company, you must have a signed Power of Attorney, Form Gen-58, in order to receive decals, information, or conduct business with the Department in regards to the account.

Power of Attorney

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Who must have a Power of Attorney?• Family members • Friends• Employees of the business

Form Gen-58 is located on the Department’s website at:

www.dornc.com/downloads/powerofattorney.html

Power of Attorney (continued)

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• To close your IFTA or IN account, submit an Out-of-Business Notification, Form NC-BN, by mail, fax or in person at the Excise Tax Division office in Raleigh.

• For IFTA accounts, the account must be current with all required returns and/or payments submitted. Form NC-BN is located on the Department’s website at:

www.dornc.com/downloads/sales.html

Out-of-Business Notification

E-Alerts

Sign up for the Department’s e-alerts and receive tax updates electronically.

www.dornc.com/electronic/taxupdates.html

Emails will include bulletins, directives, and other important notices about law changes and related tax matters.

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AssistanceNorth Carolina Department of Revenue

Excise Tax Division1429 Rock Quarry Road Suite, 105

Raleigh, NC 27610

MAIL TO: QUESTIONS: North Carolina Department of Revenue Contact the Excise Tax Division at: Excise Tax Division Telephone (919) 707-7500 P.O. Box 25000 Toll Free (877) 308-9092 Raleigh, NC 27640 Fax (919) 733-8654

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Questions?

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