Who Has to Pay This Tax?
If you transfer a taxicab license, the buyer must pay the transfer tax. If the buyer does not pay the tax, the seller will be held responsible for the tax.
If you transfer a controlling interest in a taxicab license (transferring shares of stock or the interest of an entity that owns the license) then it is treated as a transfer of the license. The new controlling entity must pay the tax.
Who is Exempt from the Tax?
The following transactions are exempt from the tax:
Transactions by or with New York State, a political subdivision of the State, or a public benefit corporation;
Transactions by or with the United States;
Transactions by or with the United Nations;
Transactions by or with not-for-profit organizations that were formed and operated exclusively for religious, charitable, or educational purposes or for the prevention of cruelty to children or animals; and
Transfers of taxicab licenses or interests in licenses by means of a lease, license, or other rental arrangement, where the term does not exceed six months (including the maximum period for which the term can be extended or renewed).