International Fuel Tax Agreement (IFTA)
What is IFTA?
The International Fuel Tax Agreement (IFTA) is an agreement among states to report fuel taxes by interstate motor carriers. To register, you must have an established place of business in your base state from which motor carrier operations are performed, mileage must be accrued in that base state, your operating records of the fleet must be maintained or can be made available in your base state, and you must operate in at least one other IFTA jurisdiction.
Under the IFTA, you are issued an IFTA license and one set of IFTA decals per truck, which will allow you to operate in all other IFTA jurisdictions without buying additional decals from those jurisdictions.
Who is Required to Report IFTA?
IFTA is required for any vehicle crossing state lines with a GVW/GVWR of 26,001 lbs or more, or if you have a power unit with 3 or more axles you are required to have an IFTA License and report quarterly the miles you operate in each state and the fuel gallons you purchase in each state.
How Can I Avoid IFTA Taxes Due at the End of Each Quarter?
You must buy fuel in each state that you run miles. The IFTA agreement states that you will pay the taxes the state charges at the pump on any mileage run in that state even if you did not purchase fuel there.
Buying fuel in a "cheaper" state does not mean that you are saving money. This is called "fuel tax equalization" between states. It is important that you retain all of your fuel receipts, so that you can prove when, where and how much fuel you purchased during any given tax period. It is also important that you retain all of your trip sheets (mileage records for each state).
When are IFTA Reports Due?
TAX RETURN REPORTING QUARTERS (Any Given Year) - DUE DATES:
- January thru March 31 - Due by April 30
- April thru June - Due by July 31
- July thru September - Due by October 31
- October thru December - Due by January 31
What is the Expiration Date and Renewal Period for IFTA Decals?
IFTA decals expire on December 31st of each year.
Weight Distance Taxes
There are also 4 states that participate in Weight Distance Taxes (WDT). WDT is an additional tax charged by these states on mileage traveled in their state. These states are Kentucky, New Mexico, New York, and Oregon.
Logistec/TTS Can Help You With Your IFTA Tax Reports
If you are worried about getting your IFTA fuel tax reports completed on time or are unsure about the proper calculations methods Logistec/TTS can help prepare your IFTA Fuel Tax Reports at an affordable price.
By simply sending us copies of your daily logs or trip sheets and copies of your fuel receipts Logistec/TTS can compile and complete your quarterly fuel taxes. We will break down the reports in a manner that will assist you in the event of an audit (i.e. by truck, by quarter, by year). We will also complete any Weight Distance Tax reports you need at the same low price.
Online IFTA Application
Logistec/TTS charges $40.00 per truck per month for all companies with 5 or less vehicles. If your fleet is larger we can offer a discount on our per truck per month fee. By completing our easy online IFTA Service Request Form one of our friendly and knowledgeable consultants will contact you to set up your account.