Who needs an IFTA license
A carrier needs IFTA when a qualified motor vehicle crosses into another member jurisdiction. The members are the 48 lower US states and the 10 Canadian provinces. A qualified motor vehicle is one that:
- has two axles and a gross or registered weight over 26,000 pounds, or
- has three or more axles, whatever it weighs, or
- is used in a combination weighing over 26,000 pounds.
You apply in your base jurisdiction, usually the state where the truck is registered. It issues the license and two decals for each truck, renewed every year.
Quarterly deadlines
| Quarter | Months | Return due |
|---|---|---|
| Q1 | January to March | April 30 |
| Q2 | April to June | July 31 |
| Q3 | July to September | October 31 |
| Q4 | October to December | January 31 |
File every quarter, even with no miles in other states. A late return costs $50 or 10% of the net tax due, whichever is more, plus interest. Check your base state's rules for a due date on a weekend or holiday.
How the return is worked out
- Add up all miles driven in the quarter, in every state, and all gallons bought.
- Fleet MPG = total miles ÷ total gallons.
- For each state: taxable gallons = miles in that state ÷ fleet MPG.
- Net taxable gallons = taxable gallons − gallons bought in that state.
- Tax due or credit = net taxable gallons × that state's rate for the quarter.
- Add the lines up. Some states also add a surcharge, such as Kentucky and Virginia.
You owe tax where you drove more than you fueled, and get a credit where you fueled more than you drove. The rates change every quarter; IFTA publishes them.
Records to keep
Keep the records behind every return for four years: miles by state for each truck and trip (ELD or trip sheets), and every fuel receipt with the date, the place, the gallons and the price. An audit asks for them truck by truck.