What Happens If You Operate Without a HUT Decal?
Operating without the required decal can create significant consequences. New York specifically states that operating without a decal affixed to the vehicle is presumptive evidence that the required certificate of registration was not obtained.
The current civil penalties are:
- First violation: $500–$2,000
- Second or subsequent violation within three years: $1,000–$3,500
These are civil penalties and are separate from possible criminal penalties.
Criminal Penalties
New York also provides criminal penalties for operating without the proper HUT or Automotive Fuel Carrier (AFC) certificate of registration. The listed criminal fine is:
- First conviction: $100–$250
- Second or subsequent conviction: $250–$500 or imprisonment for up to 10 days
Additional criminal penalties can apply to certain intentional tax-fraud conduct.
Your HUT Decal Must Belong to That Vehicle
A HUT decal is not transferable. It is issued for a particular motor vehicle and cannot simply be moved to another truck. Using a decal that was issued for another vehicle can itself constitute a violation.
Registration Can Be Suspended or Revoked
The New York Tax Department may deny, suspend, or revoke a HUT certificate of registration for violations of the Highway Use Tax requirements. In certain circumstances, suspension or revocation can occur without a hearing, including failure to file a HUT return or failure to pay HUT due.
Other Consequences for Unpaid HUT Obligations
Failure to timely pay HUT fees, taxes, penalties, or interest can result in a tax lien against real and personal property. The Tax Department may also seize qualifying vehicles and sell them at public auction to satisfy amounts due. New York DMV may additionally suspend registration plates for vehicles and related equipment.
Don't Confuse the Decal With a Trip Certificate
Carriers that only occasionally operate in New York may be able to use a HUT trip certificate of registration instead of obtaining regular registration and a decal. The current New York guidance lists the trip certificate at $25.
How to Avoid HUT Decal Penalties
Before entering New York with a vehicle subject to HUT, carriers should:
- Determine whether the vehicle is subject to HUT.
- Obtain the appropriate HUT certificate of registration.
- Make sure the correct decal is affixed to the vehicle.
- Never transfer a decal from one vehicle to another.
- Keep required HUT records.
- File required HUT returns and pay taxes on time.
- Replace a lost, damaged, or destroyed decal promptly.
Bottom line: Operating without the required New York HUT decal can expose a carrier to a $500–$2,000 civil fine for a first violation, with higher civil penalties for repeat violations, in addition to possible criminal penalties and other enforcement actions.