Prior to IFTA, each state had its own fuel taxation system and a tax permit for each state in which it worked. Most states have created ports of entry to issue permits and enforce tax collection, which has been a burden on the truck industry and states. Pre-IFTA trucks traded intergovernmentally carried special license plates („bingo plates“) on which were affixed the approval stickers of each State. This has been ineffective and has proven costly for each state. is a cooperative agreement between Canadian provinces and most U.S. states to make it easier for airlines to report the fuels they use and pay taxes. Simply put, IFTA works as a „Pay Now or Pay Later“ system. When commercial vehicles purchase fuel, the taxes paid on the fuel are credited to the lessee`s account. At the end of the quarter, the licensee completes its fuel tax report, which lists all miles traveled in all participating countries and lists all gallons purchased. Then, the average power of the miles of fuel is applied to the miles traveled to determine the tax debt for each jurisdiction. Three countries — Kentucky, New Mexico and New York — have „weight miles“ taxes in addition to the standard fuel tax.
Oregon only has a weight tax. Any amount of taxes due (or refunded) on fuel is then paid (or received from the base court) that issued the license. The member courts then deal with the corresponding transfer of funds. Audits are only carried out by the base state and fuel links are rarely required. Creating an IFTA Account: According to Wikipedia, the International Fuel Tax Agreement (or IFTA) is an agreement between the 48 lower states of the United States and Canadian provinces to simplify the reporting of fuel consumption by road transport companies operating in more than one jurisdiction. Alaska, Hawaii and the Canadian territories do not participate. An exporting airline with IFTA obtains an IFTA license and two stickers for each qualified vehicle it operates. The carrier files a quarterly fuel tax report.
This report is used to determine the net tax or refund due and redistribute taxes from collecting states to states that are due. This tax is necessary for motor vehicles used, designed or maintained for the carriage of persons or goods and:- with two axles and a total authorised weight or total authorised weight exceeding 26,000 pounds and/or, with three or more axles, whatever their weight and/or weight, is used in combination where the weight of such a combination exceeds 26,000 pounds of total vehicle or Total weight allowed and are experts in establishing an IFTA account. We can provide you with an instant IFTA account if you are eligible for the IFTA account. Please contact us for more information. If you are transporting goods for another person, a contract may make the carrier, not the owner of the vehicle, responsible for reporting and paying fuel taxes.