IFTA Quarterly Fuel Tax Reporting

IFTA - International Fuel Tax Agreement

IFTA is the International Fuel Tax Agreement and is a tax collection agreement by and among the 48 contiguous States and the 10 Canadian Provinces bordering the US, in which motor fuels use taxation laws are uniform with respect to qualified motor vehicles operated in more than one member jurisdiction. Both Alaskan and Hawaiian drivers are exempt from paying these taxes, unless they operate in the contiguous United States.

Should I register for IFTA in my state?

A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property having:

Two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or
Having three or more axles regardless of weight; or
Is used in combination, when the weight of such combination exceeds 26,000 pounds, or 11,797 kilograms gross vehicle or registered gross vehicle weight.

Qualified Motor Vehicle does not include recreational vehicles unless they are used in conjunction with any business endeavor. Recreational vehicles are vehicles such as motor homes, pickup trucks with attached campers and buses when used exclusively for personal pleasure by an individual.

How do I apply for an IFTA license?

You will complete Form IFTA-1 for whichever state you will be operating in that requires IFTA payments, and mail the completed license application to the tax department of the state you are applying in.

On or before November 30 of each calendar year, we will send you an application for renewal of your IFTA license and decals.

What fees must I pay under IFTA?

There is a $8 fee for each set of decals. If additional decals are desired, they are $4 per set. You will need one set per qualified vehicle.

Prepare your IFTA Quarterly Fuel Tax Report with ExpressIFTA is the fastest, most secure, and error-free way to generate your IFTA report with no manual tax calculations needed.

START YOUR IFTA REPORT

What credentials will I receive?

One IFTA license and a set of decals will be assigned to each IFTA licensee. A photocopy of the license must be maintained in the cab of each motor vehicle. The original license issued by the bureau should be retained at your business address. The IFTA license is valid for the calendar year January 1 through December 31.

Do I file a quarterly fuel tax report if I didn't run during the quarter?

Yes, a quarterly fuel tax return must be filed even if the no fuel was used. You submit a “zero” report.

What is the penalty and interest rate for filing a late quarterly fuel tax report?

Failure to file a return, filing a late return, or failure to remit any or all tax due will result in a penalty of $50.00 or 10% of the net tax due to all member jurisdictions, whichever is great. Interest is computed on all delinquent taxes dues each jurisdiction at a rate of .4167% per month. Even if you have a net refund, interest still applies to each jurisdiction for any underpayment of fuels use tax to that jurisdiction and is calculated beginning the day after the due date of the return for each month, or fraction of a month, until paid.