What is IFTA in trucking?

IFTA, or the International Fuel Tax Agreement, was created to streamline the collection and distribution of fuel taxes for carriers who operate in multiple jurisdictions. The transportation industry has been classically funded by motor fuel taxes. IFTA was a natural byproduct of the growing transportation industry.

What are IFTA requirements?

To register for IFTA, you must first meet the following requirements:

• Truck has two axles and a gross vehicle weight (GVW) exceeding 26,000 pounds or has three or more axles.
• Transport goods or people across different states/provinces.
• Truck with a trailer and their combined weight exceeds 26,000 pounds.

What does the acronym IFTA stand for?

The International Fuel Tax Agreement — also known as IFTA — is a fuel tax collection and sharing agreement for the redistribution of fuel taxes paid by interstate commercial carriers. There are 58 member jurisdictions of IFTA, including 48 American states and 10 Canadian provinces.

What is IFTA payment?

IFTA is an agreement among American and Canadian jurisdictions that enables uniform collection and distribution of fuel taxes paid by motor carriers traveling in multiple jurisdictions.

How do you calculate IFTA?

First, you need to calculate how many gallons of fuel you burnt per mile traveled (fuel mileage).

1. Add up the total number of gallons of fuel you have purchased (while you’re at it, jot down how much fuel tax you paid in each state – more on this in later)
2. Add up the total number of miles traveled across all states.

Do straight trucks need IFTA?

If you have a straight truck pulling a trailer and the combined weights when loaded are 26,001-lbs or more and you cross state lines, you will need to register for IFTA fuel tax.

Who should pay IFTA tax?

Motor carriers who operate an IFTA-qualified motor vehicle in commerce must participate in IFTA. A qualified motor vehicle is one used, designed or maintained to transport property or persons that is: Three or more axles regardless of weight, or. Two axles with a gross vehicle weight over 26,000 pounds; or.

Who pays IFTA?

The lessor has a copy of the lessee’s IFTA fuel tax licence which is valid for the term of the rental. IFTA specifies that in the case of a carrier using independent contractors under short term leases of 29 days or less, the trip lessor will report and pay all fuel taxes.

How is IFTA calculated?

Your IFTA fuel tax is calculated based on how many gallons of fuel you burnin each state. You’ll need to calculate your fuel mileage over the entire quarter. You’ll need to calculate your total gallons burned in each state using the results from Steps 2 & 3. You’ll need to calculate your tax owed in each state.

How does IFTA tax work?

Under IFTA, carriers only need to report interjurisdictional fuel use to their base state. The state, in turn, will collect the taxes on net fuel use, process fuel tax returns, and distribute the funds to all the other states. The base state is also responsible for enforcing compliance through scheduled IFTA audits.

What is IFTA mileage calculator?

Welcome to the IFTA mileage calculator. The IFTA Mileage tool will display the mileage by city to help trucking companies figure out miles per state they travel.

What is IFTA and how does it work?

The purpose of IFTA is to establish and maintain the concept of one fuel use license for interstate carriers and one administering base jurisdiction for each license holder. An IFTA license allows a taxpayer to file one tax report that covers all member jurisdictions.

What does IFTA stand for and how does it work?

The IFTA stands for the International Fuel Tax Agreement. It is an agreement between the lower 48 states in the U.S. and 10 provinces in Canada which simplifies fuel tax reporting. Trucking companies travel between jurisdictions on a daily basis. Jul 24 2019

What does IFTA stand for?

IFTA stands for International Fuel Tax Agreement (trucking) Suggest new definition. This definition appears very frequently and is found in the following Acronym Finder categories: Military and Government. Business, finance, etc.

What does the name IFTA mean?

According to a user from Michigan, U.S., the name Ifta means “The act of issuing a religious decree or verdict, or fatwa, in Islam”. Search for more names by meaning .