IFTA INTERNATIONAL FUEL TAX AGREEMENT

IFTA INTERNATIONAL FUEL TAX AGREEMENT

Dear and faithful readers of the prestigious EL TRAILERO MAGAZINE:
As usual, in this edition we will learn everything related to the IFTA. Many of you know that you have to get your stickers, keep all of your diesel receipts, and take them to your tax agent to prepare a report every three months.
The International Fuel Tax Agreement (IFTA) is an agreement where the United States and Canada participate to distribute taxes procured through the sale of diesel.
Roughly 35% of diesel price are TAXES, and with this money comes on-road fixes, highway patrol’s officers, and scales and services on the roads.
45 states participate in IFTA, excluding the states of Oregon, Kentucky and New Mexico, who charge their taxes separately, so when going through these states you will have to pay before entering.
For example, you pick up a load in Phoenix, AZ and have to drop it off in Oregon. You’ll pay $1000.00 in diesel in Phoenix, AZ, then cross the entire territory of California to deliver the cargo to Oregon. Taxes on the $1000.00 in diesel will be approximately $350.00, which will remain in the state of Arizona. While using roads and bridges in California, Arizona must pay a credit to California for the taxes left there. And so on in all US states.
Therefore, it is very important to have strict control over where you put diesel, where you burn it, and that you have an agent specialized in IFTA reports. The state of California audits to 3% of all those who have IFTA, which are thousands of users. And if they discover that you have purchased diesel out of state and do not properly report it, you’ll pay a fine, get your IFTA license suspended, and will go through inspection whenever passing a scale.
Like the prorate plates, you have to renew your IFTA every December 31st (the end of each year). But you can still work with the stickers lapsed until the end of March of next year.
If you have questions, you can call and speak directly with: Motor Carrier Section MIC: 65 Tel: 916.657.8153

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