Motor Carrier Registration

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Motor Carrier Registration

• Excise Tax Division

July 2014
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Topics

• 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

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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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IFTA (Interstate Motor Carrier)(continued)

• 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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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.

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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 carriers
  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
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• 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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License and Decals Issuance (continued)

• 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.

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License and Decals Issuance (continued)

• Additional license and decals can be requested
  electronically using the Departments 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.

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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 Penalties

• A 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 Departments website, fax, or
  by mail as early as possible.

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Annual Renewal Process (continued)

• 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.

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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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Reminders

• 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 (continued)

• 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.

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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)
• 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 Revocation

• An 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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Unlawful Operations

• 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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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 (continued)

• 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)

• 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.

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IFTA Temporary Decal Permits

• 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.

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IFTA Temporary Decal Permits (continued)

• 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.

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IFTA Temporary Decal Permits(continued)

• North Carolina IFTA temporary decal permits are
  only issued Monday through Friday from 800 a.m.
  to 500 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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Lease AgreementsLess than 30 Days (continued)

• 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 lessees IFTA fuel
  tax license which is valid for the term of the
  rental.

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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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Independent Contractors Leases of Less than 30
Days

• 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 Contractors Leases of 30 Days or More

• 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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Power of Attorney

• For your protection and the businesss
  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.

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Power of Attorney (continued)

• Who must have a Power of Attorney?
• Family members
• Friends
• Employees of the business
• Form Gen-58 is located on the Departments
  website at
• www.dornc.com/downloads/powerofattorney.html

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Out-of-Business Notification

• 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
  Departments website at
• www.dornc.com/downloads/sales.html

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E-Alerts

• Sign up for the Departments 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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• Assistance
• North Carolina Department of Revenue
• Excise Tax Division
• 1429 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
  [phone]
• P.O. Box 25000
  Toll Free [phone]
• Raleigh, NC 27640
  Fax
  [phone]

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Questions?