IFTA Fuel Tax Agreement

IFTA

IFTA is an agreement between US States and some Canadian provinces that allows members (truck owners) to coordinate all their fuel tax and tax filing responsibilities with their base jurisdiction rather than each jurisdiction where they operate.  This coordination applies to fuel taxes only and does not cover road taxes, weight taxes or similar taxes.  

That's complicated statement.In simple terms, for members, it allows for filing to become a simplified quarterly activity, with one government agency rather than complicated process including multiple states and provinces.

For the member tax jurisdictions (states and provinces), it means fewer tax payers, lower administrative costs and the ability to focus its enforcement resposibilities on a smaller base.

Additionally, if you operate multiple vehicles, a single fuel tax license applies for all qualified motor vehicles and allows for consolidated, though still detailed, filings.

Taxes and paperwork are filed monthly with your base jurisdiction.  Generally, they are due the last day of the month following the end of the quarter. Check your jurisdiitions websites for exact details.

Who Can Register for IFTA

Registering for IFTA is optional and offers advantages to carriers who operate in more than two states.  A vehicle operating in Mexico and California does not qualify.

A vehicle qualifies for registration if it has three or more axles, or two axles with a gross vehicle weight or used in a combination of more than 13 tons (26,000 pounds). (RVs are not qualified, unless they are used for business operations.) 

How to Register for IFTA

Most states have online registration, through their Motor Vehicle or Department of State web sites.   Upon registration, two decals will be provided per vehicle.  These decals must be placed on the driver and passenger side exteriors.  The registration is valid for one year. 

Who's Not in IFTA

  • Mexico
  • US: Alaska, Hawaii and Washington, DC
  • Canada: Northwest Territories, Nunuvit and Yukon Territory

IFTA: Mileage & Fuel

IFTA miles versus non-IFTA miles:  In some cases, jurisdictions may charge a surcharge, or allow certain mileage exemptions, or allow for Trip permits. Usually, though, total miles and IFTA miles are the same.

IFTA Fuel vs. non-IFTA fuel:  fuel placed in the vehicle's 'propulsion' tanks is counted for that quarter's tax.  Fuel still in a depot or bulk storage does not count.  Fuel not used for propulsion would also not count. Different types of fuel will need to be reported separately.

According to the State of Florida,  "MPG" is the quarterly sum of all miles traveled…  by all the IFTA registered vehicles in a fleet .. divided by the total gallons of fuel…"  

Last But Not Least

IFTA stands for International Fuel Tax Agreement. The agreement is managed by the International Fuel Tax Association, Inc. Check out our GPS Trackers as a first-step tool to collect the data you need to support the Fleet reporting.

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