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You must complete the petition for surrender found on the reverse side of the license certificate or complete the separate Petition for Surrender Form found on the SLA website. The SLA must approve the surrender of your license.
You must complete the Plate Surrender Application (PDF) (PD-7) for each set of plates that you are surrendering.
In most cases you should be surrendering your plates to the NYS DMV. Otherwise, they should go in the trash. They will be recovered at the Waste-to-Energy Facility and recycled.
You must surrender your vehicle registration and plates to the DMV before the New York State liability insurance is cancelled. If you register your vehicle in another state and surrender the New York vehicle plates to the New York DMV, you can get insurance in the other state.
Your old plates are considered to be scrap metal and you can recycle them at your local scrap metal yard or recycling drop-off station. For more information, visit Recycle Right New York.
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People also ask

Remember this simple rule: no insurance, no plates! If you do not have valid auto liability insurance coverage for your vehicle, you must immediately surrender your registration and vehicle plates. Motorcycle plates do not have to be surrendered to DMV when auto liability insurance lapses.
(j) Ten-day time extension (form VS-1077). A sticker secured from the Department of Motor Vehicles and affixed to a motor vehicle to evidence that the time within which such motor vehicle must be inspected has been extended for a period not to exceed 10 days as stated on the certificate.
You can return your license plate to the DMV in person. Just schedule an appointment or walk in and wait in line. You can also mail your old plates to your local DMV licensing office. If you get new plates at the DMV after registering your car, ask to leave the old plates with them.

new york state plate surrender form