What Is The International Fuel Tax Agreement?
IFTA (International Fuel Tax Agreement) is an agreement among US and Canadian provinces. This agreement makes fuel tax licensing and reporting requirements or interstate motor carriers easier. Furthermore, if you operate in two or more member provinces or states, you can register for IFTA. If you are under it, you will be able to register with one state or province as your base jurisdiction and as a result get a single fuel tax license for all of your vehicles that will be authorized to travel in all IFTA jurisdictions. Under IFTA you can travel in 48 states and 10 Canadian provinces.
Do You Qualify For IFTA?
To qualify for IFTA, at first, you must have a vehicle that transports people or property for compensation and:
- has three or more axles
- has two axles and a gross vehicle or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms
- used in a combination that has a registered gross vehicle weight of 26,000 pounds or more
IFTA offers several advantages to interstate motor carriers who operate in two or more member states or provinces. So, under IFTA, you will:
- Register with one IFTA-member state or province as your “base jurisdiction”
- Obtain a single fuel tax license for all of your qualified motor vehicles, authorizing them to travel in all IFTA jurisdictions
- File only one tax return each quarter with your base jurisdiction to report fuel usage and mileage for all IFTA jurisdictions
Motor vehicles, which are only for personal use, are not qualified for IFTA registration.
What Else Can You Do , If You Don’t Want To Register For IFTA?
If you qualify for IFTA but don’t want to register you must get a trip permit from each member state or province every time you travel into it. Furthermore, it is mandatory to purchase a four-day fuel trip permit before returning to California.
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