International Fuel Tax Agreement – Interstate Fuel Tax License
What is an International Fuel Tax Agreement – Interstate Fuel Tax License?
IFTA stands for International Fuel Tax Agreement, and it is the type of fuel tax account you need if you have a rig that drives outside of Indiana. This tax primarily pays for road and bridge repairs that local and state roads need. Motor carriers from all states (and Canada) must register for IFTA if they leave their home base (Base Jurisdiction-IFTA), which in this case is Indiana.
Who needs to know about this?
Well, if you are based out of Indiana and drive a big rig across state lines and your rig meets any of the following, you might need an IFTA account:
- It has more than 2 axles;
- It has a gross vehicle weight rating or license plate weight greater than 26,000 lbs. by itself
- When hauling a trailer, its weight, when added together with the power unit, has a combined gross vehicle weight rating or license plate weight greater than 26,000 lbs.
What are the exceptions?
Some vehicles are not required to register for IFTA. These include personal-use RVs (motor homes, campers, and travel trailers) and vehicles that are still being driven by the dealer on their dealer plates.
This is also true if you are keeping your rig only in Indiana. Be sure to take a look at the upcoming MCFT section to get information about Motor Carrier Fuel Tax licenses for Indiana-only carriers.
What do I do next?
Complete an IFTA-1A Registration application; otherwise, you could end up along the side of the road with your flashers on:
If you still need more information about the IFTA Fuel Tax License, you can click on the link and take a look at our International Fuel Tax Agreement (IFTA) Information Handbook.
Things to Remember
- Once you get your IFTA account set up by filing the IFTA-1A, you will be sent a current-year IFTA Fuel Tax License and IFTA compliance decals. Be sure to put a copy of the IFTA License in each vehicle and stick the decals to both sides of any cab that meets the IFTA requirements.
- You will need to keep track of your fuel purchases and the miles driven by each of your vehicles in each base jurisdiction (that’s all states and all Canadian providences). Make sure all those receipts and trip tickets get back to the office and are kept in a safe place.
- Your IFTA License can be revoked for not filing and/or paying tax liabilities or not complying with other IFTA requirements.
If you have a dump truck, a super sucker, an auxiliary power unit (APU), or other equipment that is operated from the same fuel tank as your engine, you may want to look into the Proportional Use (Fuel) Tax Credit.