What is the International Fuel Tax Agreement (IFTA) and what are the requirements?

The International Fuel Tax Agreement (IFTA) is an agreement among states to report fuel taxes by interstate motor carriers.  To qualify for IFTA the following conditions must apply:

1. You have at least one qualified motor vehicle registered with the state Division of Motor Vehicles;

2. You maintain the operational control and records for qualified motor vehicles in the state or can make these records available in the state;

3. You have qualified motor vehicles which travel on state highways; AND

4. You operate in at least one other IFTA jurisdiction. The current IFTA membership consists of the 48 contiguous states and the following Canadian provinces: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland,Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan.

• If you meet all these conditions, you qualify to become an IFTA carrier. The IFTA license and decal issued by the state will allow the motor carrier operating authority in all IFTA jurisdictions while filing one quarterly tax return with the base state reporting all operations in each IFTA jurisdiction.

  Intrastate (IN) 

• means any motor carrier who operates a qualified motor vehicle only in their base state.  A license and decal

  is required for all qualified motor vehicles that only travel in their base state.

   

Who Must Apply

Businesses who operate a Qualified Motor Vehicle must obtain a license and decal. A Qualified Motor Vehicle means a motor vehicle used, designed, or maintained for the transportation of persons or property and:
1. having 2 axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds;
2. having 3 or more axles regardless of weight; or
3. used in combination when the weight of such combination exceeds 26,000 pounds gross vehicle weight.
NOTE: Do not consider the title weight (manufacturer’s gross vehicle weight) in #1 or #3 above.
Exempt vehicles include recreational vehicles and vehicles owned by the United States Government, a state, or a political subdivision of a state. Vehicles owned by the United States Government, a state, or a political subdivision of a state that operate in other IFTA jurisdictions may be subject to fuel tax reporting laws of those jurisdictions. Exemption information for each jurisdiction can be viewed at www.iftach.org.

Electronic Filing Mandate

Currently many states mandate the electronic filing of IFTA returns. If IFTA returns are not filed electronically the states will assess penalties for failure to file electronically.

Reporting Quarters and Due Dates

IFTA Return Reporting Quarters          Due Date

January thru March                                  April 30

April thru June                                         July 31

July thru September                               October 31

October thru December                         January 31

IMPORTANT NOTICE

ALL IFTA and IN decals expire December 31 of each year.  In order to have your decals before the end of the year we recommend you apply before November 1.  ****Please note, the two month grace period does not apply to motor carriers.  It is a grace period for the states to process your application and get the decals to you.  You must have applied by the state deadline to be covered by the two month grace period.****