1. A. A lessor, lessee, independent contractor, or household goods agent shall be licensed, liable for reporting, and liable for payment of fuel use taxes as required by the International Fuel Tax Agreement (IFTA).
2. B. A lessor regularly engaged in the business of leasing or renting motor vehicles without drivers, for compensation to licensees or to other lessees, may be deemed to be the licensee. The lessor may be issued a license if an application has been properly filed and approved by the base jurisdiction.
3. C. In the case of a carrier using independent contractors under long-term leases (30 days or more), the lessor and lessee are 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 is responsible for reporting and paying fuel use tax. If the lessee (carrier) through a written agreement or contract assumes responsibility for reporting and paying fuel use taxes, the base jurisdiction for purposes of IFTA is the base jurisdiction of the lessee, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor.

4. D. In the case of a short-term motor vehicle rental by a lessor regularly engaged in the business of leasing or renting motor vehicles without drivers for compensation to licensees or other lessees of 29 days or less, the lessor shall report and pay the fuel use tax unless the following two conditions are met:

   1. (1) The lessor has a written rental contract which designates the lessee as the party responsible for reporting and paying the fuel use tax; and
   2. (2) The lessor has a copy of the lessee's IFTA fuel tax license which is valid for the term of the rental.
5. E. In the case of a carrier using independent contractors under short-term/trip leases of 29 days or less, the trip lessor shall report and pay all fuel taxes.

6. F. Household Goods Carrier.

   1. (1) In the case of a household goods carrier using independent contractors, agents, or service representatives, under intermittent leases, the party liable for motor fuel tax is:

      1. (a) The lessee (carrier) when the qualified motor vehicle is being operated under the lessee's jurisdictional operating authority; or
      2. (b) The lessor (independent contractor, agent, or service representative) when the qualified motor vehicle is being operated under the lessor's jurisdictional operating authority.
   2. (2) Under §F(1)(a) of this regulation, the base jurisdiction for purposes of IFTA is the base jurisdiction of the lessee (carrier), regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor or lessee.
   3. (3) Under §F(1)(b) of this regulation, the base jurisdiction for purposes of IFTA is the base jurisdiction of the lessor, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes.
7. G. Filing of leases is not required as a condition of licensing, but leases shall be made available upon request of an IFTA jurisdiction.

Authority: Tax-General Article, §§2-103 and 9-205, Annotated Code of Maryland

Effective date: June 1, 1974

Regulation .01 amended effective November 22, 1982 (9:23 Md. R. 2257); September 7, 1987 (14:18 Md. R. 1963)

Regulation .01A amended effective September 14, 1981 (8:18 Md. R. 1476)

Regulation .01C amended effective June 2, 1978 (5:11 Md. R. 881); September 14, 1981 (8:18 Md. R. 1476)

Regulation .01D amended effective September 14, 1981 (8:18 Md. R. 1476)

Regulation .02A amended effective September 7, 1987 (14:18 Md. R. 1963)

Regulation .02C amended effective November 22, 1982 (9:23 Md. R. 2257)

Regulation .02F amended effective November 22, 1982 (9:23 Md. R. 2257)

Regulation .02H amended effective November 22, 1982 (9:23 Md. R. 2257)

Regulation .03 amended effective October 20, 1986 (13:21 Md. R. 2319)

Regulation .04A amended effective September 7, 1987 (14:18 Md. R. 1963)

Regulation .05 amended effective June 2, 1978 (5:11 Md. R. 881)

Regulation .05A amended effective September 14, 1981 (8:18 Md. R. 1476); November 22, 1982 (9:23 Md. R. 2257); August 26, 1985 (12:17 Md. R. 1699)

Regulation .05C amended effective November 22, 1982 (9:23 Md. R. 2257)

Regulation .05D amended effective November 22, 1982 (9:23 Md. R. 2257)

Regulation .05F amended effective March 23, 1979 (6:6 Md. R. 509); September 14, 1981 (8:18 Md. R. 1476)

Regulation .05 repealed and new Regulation .05 adopted effective September 7, 1987 (14:18 Md. R. 1963)

Regulation .06 amended effective November 22, 1982 (9:23 Md. R. 2257)

Regulation .07 amended effective June 2, 1978 (5:11 Md. R. 881); September 14, 1981 (8:18 Md. R. 1476); November 22, 1982 (9:23 Md. R. 2257); September 7, 1987 (14:18 Md. R. 1963)

Regulation .08 amended effective September 14, 1981 (8:18 Md. R. 1476); November 22, 1982 (9:23 Md. R. 2257); September 7, 1987 (14:18 Md. R. 1963)

Regulation .09 amended effective September 14, 1981 (8:18 Md. R. 1476); November 22, 1982 (9:23 Md. R. 2257); September 7, 1987 (14:18 Md. R. 1963)

Regulation .10 amended effective November 22, 1982 (9:23 Md. R. 2257)

Regulation .12 amended effective November 22, 1982 (9:23 Md. R. 2257)

Regulation .12F amended effective June 2, 1978 (5:11 Md. R. 881)

Regulation .13 adopted effective June 2, 1978 (5:11 Md. R. 881)

Regulation .13 amended effective November 22, 1982 (9:23 Md. R. 2257)

Regulation .13A amended effective September 7, 1987 (14:18 Md. R. 1963)

Regulation .13B amended effective September 7, 1987 (14:18 Md. R. 1963)

Regulation .13E amended effective September 7, 1987 (14:18 Md. R. 1963)

Regulation .14 adopted effective November 22, 1982 (9:23 Md. R. 2257); repealed effective August 26, 1985 (12:17 Md. R. 1699)

Chapter revised effective January 23, 1989 (16:1 Md. R. 66)

Regulation .12 repealed effective August 6, 1990 (17:15 Md. R. 1853)

Chapter revised and recodified from COMAR 03.03.06 to COMAR 03.03.04 effective August 20, 1990 (17:16 Md. R. 1987)

Regulation .01 amended effective October 26, 1992 (19:21 Md. R. 1890)

Regulations .02, .05, .07, .10, and .12 amended, and Regulation .14 adopted effective September 28, 1992 (19:19 Md. R. 1703)

Regulation .13A amended effective May 8, 1995 (22:9 Md. R. 644)

Chapter revised effective January 14, 1999 (26:1 Md. R. 20)

Regulations .01-2C amended effective May 16, 2022 (49:10 Md. R. 562)

Regulation .03 amended effective June 21, 2004 (31:12 Md. R. 911)

Regulations .05A amended effective May 16, 2022 (49:10 Md. R. 562)

Regulations .07 amended effective May 16, 2022 (49:10 Md. R. 562)

Regulation .08 amended effective June 19, 2006 (33:12 Md. R. 996)

Regulations .10 amended effective May 16, 2022 (49:10 Md. R. 562)

Regulations .12 amended effective May 16, 2022 (49:10 Md. R. 562)