Ifta Basics - Crucial Information For Trucking Business Owners

The IFTA (International Fuel Tax Agreements) was formulated for motor carriers so that their fuel taxes can be recorded efficiently. About 40 states in the United States as well as in the Canadian provinces are covered under this agreement. This makes tracking the carriers an easy job even if they operate in different jurisdiction. For each of their trucks, companies are issued IFTA decals and one IFTA license. This ensures that they do not have to purchase additional decals and can carry on their operations even in other jurisdictions. Earlier for every state the carrier had to obtain individual permits because different tax systems were in force in different states.

For operating any motor carrier business, a place of business has to be established by the applicants before they can apply for a license. They have to maintain the records of fleet operational and the tracking mileage in their state. This information has to be shared with the state when required. Additionally, the trucks operation must take place in a minimum of two IFTA jurisdictions.

Quarterly Tax and Registration

Truck fleet owners get the choice of either completing the application package for IFTA or get the same job done by Truckers Accounting and Permit Service for them. After the registration, filing of a quarterly tax form is needed. It does not matter if the license holder has no operation during the quarter or if they do not purchase fuel. All licensed carriers receive the IFTA tax return by mail on a quarterly basis. At iftach.org website one can view, download and print the tax rates.

Expiration
Decals are designed to expire every year on December 31st, irrespective of when or where the IFTA was obtained. Immediately after expiration, renewing of the decals is recommended for licensees, in case they need it. A grace period of two months from December to February is allowed until the next tax on fuel is announced.

Specifications
Regardless of the weight, any motor vehicle that has 3 or 4 axles is required to pay IFTA tax. If the weight of the vehicle is more than 26,000 pounds and it has only two axles then the tax has to be paid by them. A license for International Fuel Tax Agreements has to be obtained by all trucking companies that have commercial operations. Farm and government vehicles may not be covered under this.

By: Dirk Elmendorf

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Dirk Elmendorf is the owner of Trucking Office. Trucking Office is a trucking software company in San Antonio, TX specializing in transportation logistics management.