Lease Agreements

Short-Term Leases

In the case of a short-term motor vehicle rental by a lessee 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 lessee will report and pay the fuel use tax unless the following two conditions are met:

  • The lessee has a written rental contract which designates the lessor as the party responsible for reporting and paying the fuel use tax.
  • The lessee has a copy of the lessor's International Fuel Tax Agreement license that is valid for the term of the rental.

Long-Term Leases 

A lessee regularly engaged in the business of leasing or renting motor vehicles without drivers for compensation to licensees or other lessees may be deemed to be the licensee, and such lessee may be issued a license if an application has been properly filed and approved by the base jurisdiction.