Common use of Leases of 30 Days or More Clause in Contracts

Leases of 30 Days or More. In the case of a motor carrier using independent contractors under long-term leases (30 days or more), the lessor and lessee will be given the option of designating which party will report and pay fuel use tax. In the absence of a written agreement or contract, or if the document is silent regarding responsibility for reporting and paying fuel use tax, the lessee will be responsible for reporting and paying fuel use tax. If the lessee (i.e. motor carrier), through a written agreement or contract, assumes responsibility for reporting and paying fuel use tax, the base jurisdiction shall be that of the lessee, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor. Leases are not required to be filed with the base jurisdiction, but shall be made available upon request. (R530.200; R540) Decals that are assigned to a new owner-operator under a long-term lease agreement must be voided once the lease has been terminated. If the decals are not voided upon lease termination, the motor carrier is still responsible for quarterly filing even if no travel occurs.

Leases of 30 Days or More. In the case of a motor carrier using independent contractors under long-term leases (30 days or more), the lessor and lessee will be given the option of designating which party will report and pay fuel use tax. In the absence of a written agreement or contract, or if the document is silent regarding responsibility for reporting and paying fuel use tax, the lessee will be responsible for reporting and paying fuel use tax. If the lessee (i.e. motor carrier), through a written agreement or contract, assumes responsibility for reporting and paying fuel use tax, the base jurisdiction shall be that of the lessee, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor. Leases are not required to be filed with the base jurisdiction, but shall be made available upon request. (R530.200; R540) Decals that are assigned to a new owner-operator under a long-term lease agreement must be voided cancelled once the lease has been terminated. If the decals are not voided cancelled upon lease termination, the motor carrier is still responsible for quarterly filing even if no travel occurs.