Do I need IFTA
You qualify for an IFTA license if you operate your qualified commercial motor vehicle in any U.S. state or Canadian province that is a member of the International Fuel Tax Agreement. To qualify your commercial vehicle, your commercial vehicle will have to meet the following weight/axle requirements:
A vehicle used or designed to transport property
is a qualified motor vehicle if it:
- Has three or more axles; or
- Has two axles and a gross vehicle or registered gross vehicle weight
of more than 26,000 pounds; or
- Is used in a combination that has a combined or registered gross vehicle weight of more than 26,000 pounds. If you are a HotShot operator, it is extremely important to understand this qualification. The critical word here is registered. If your GVWR is over 26,000 pounds, many hotshot operators elect to register at just the 26,000 pounds so they don’t have to worry about paying fuel taxes which is generally OK as long as they don’t cross a scale one pound over this magic number. There are several things to keep in mind. First, fuel taxes are more of a paperwork problem than a cost problem. All you have to do is purchase an amount of fuel in each state to offset the fuel consumed in that state to offset any potential fuel tax liability. Second, if your equipment can haul 30,000 pounds and you are registered at 26,000 pounds you are limiting your ability to haul this extra weight which can effect your earnings.
- Carriers traveling in non-IFTA jurisdictions must continue to comply with the fuel tax reporting requirements of those jurisdictions.
How Much Does IFTA Cost?
The state’s registration fee for your apportioned plate will vary depending on your base state, gross vehicle weight, and states you wish to register. Typically the state fees for an 80,000 pound vehicle running all 48 lower states is between $1500 and $2000, but this could vary depending on you base state.
The initial IFTA decal fee in covered in every package. For IFTA, you will need to keep track of the mileage traveled in each state and the fuel purchased in each state. You will receive an IFTA quarterly report from your state each quarter to determine if you owe fuel taxes or if you get a fuel tax refund.
If you purchase most of your fuel in a state that has low fuel taxes and run most of your miles in states that have higher fuel taxes, you will owe taxes to those states with the higher fuel tax rates. If you purchase most of your fuel in a state with a high fuel tax rate and run most of your miles in states that have a lower fuel tax rate, those state will owe you a refund.
What Exactly Does Sky Transport Solutions do for me?
IFTA Fuel Tax
What are the fuel tax rates for IFTA jurisdictions?
You may view, print, or download the fuel tax rates for all IFTA jurisdictions including California at http://www.iftach.org.
IFTA Quarterly Fuel Tax Report
To file an IFTA quarterly tax return you will need:
- The total miles, taxable and nontaxable, traveled by the IFTA licensee’s qualified motor vehicle(s) in all jurisdictions/states, regardless if they participate in IFTA, which includes all trip permit miles;
- The total gallons or liters of fuel that is consumed by a qualifying motor vehicle, including taxable and nontaxable, in all jurisdictions/state whether they participate in IFTA or not;
- The total miles and total taxable miles traveled in each member jurisdiction;
- The total taxable gallons consumed in each member jurisdiction;
- The tax-paid gallons/liters that are purchased in each member jurisdiction; and
- The current tax rates for each member jurisdiction.
Should I register for IFTA in California?
You should register with California as your base jurisdiction if all of the following apply:
- Your qualified motor vehicles are based in California for vehicle registration with the California Department of Motor Vehicles (DMV);
- You perform operations from an established physical place of business in California (a post office box, mail drop address, or agent address boxes not qualify);
- Your fleet’s qualified motor vehicles travel on California highways; and
- You maintain the operational control and operational records for your qualified motor vehicles in California or you can make those records available in the state.
Before you proceed with IRP plates and IFTA account you must have your companies MC Authority. More information on MC Authority.
Getting an IFTA Sticker
IFTA stands for “International Fuel Tax Agreement.” You receive your IFTA sticker from your home state. You file quarterly reports to the base state and they pay the other states. 48 states are IFTA members. IFTA license and stickers cost about five (5) dollars each year.
You may also want to contact the DOT at the state level.
State Transportation Web Sites
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Puerto Rico
- Rhode Island
- South Carolina
- South Dakota
- West Virginia