You've seen the colorful stickers on the side of somebody else’s truck and those magic letters: I F T A.
And you wonder to yourself? What are those? Do I need them? Read on to find out.
What is IFTA?
- The International Fuel Tax Agreement is a tax collection agreement by and among the 48 contiguous [United] States and the 10 Canadian Provinces bordering the US.
- IFTA allows for the uniform administration of motor fuels use taxation laws with respect to qualified motor vehicles operated in more than one member jurisdiction.
- IFTA regulates motor fuel use taxes that are imposed by each jurisdiction on the consumption of motor fuel in qualified motor vehicles.
Who Needs IFTA?
- IFTA is required for: a motor vehicle used, designed or maintained for the transportation of persons or property and has:
- Gross vehicle or registered gross vehicle weight over 26,000 lbs. or 11,797 kgs.
- Three-axles regardless of weight.
- Used in combination when the weight of the combination exceeds 26,000 lbs. or 11,797 kgs.
Benefits of Membership in IFTA:
- One license and one set of decals for each qualified motor vehicle to operate through all member jurisdictions.
- One tax return filed each quarter with the base jurisdiction.
- One tax payment or refund.
- One audit by the base jurisdiction.
- Reduced administrative costs.
What is a Base State/Jurisdiction?
- Where qualified motor vehicles are registered (IRP).
- Where operational control and operational records are maintained or can be made available.
- Where some travel is accrued.
So, do you need IFTA?
If so, please visit https://iftatax.us to apply for an IFTA license or file a quarterly return.
Convenience Fees at Federal Applications Processor Hoffenmer:
- Initial License Application: $250
- License Renewal Application: $250
- Quarterly Filing: $50
- Online Credential Setup: $30
We look forward to assisting you with your IFTA (and other compliance) needs. Visit: iftatax.us.
Federal Applications Processor Hoffenmer.