INTERNATIONAL FUEL TAX AGREEMENT
Why should you get an IFTA license? It is used to control where you bought and where you used diesel. It is an agreement between 3 countries: United States, Mexico and Canada to distribute taxes procured through the sale of diesel.
Why should I get the IFTA license in California? Because your truck is registered within the California Department of Motor Vehicle (DMV) and the license has to be from the state where you are.
Are IFTA license and decals important? You have to have a copy of the license and the decals on both sides of the truck, even if your IFTA permits are in order. If you are not carrying the documents with you, you will pay a fine and will be given a citation or ticket.
REMEMBER TO DO YOUR QUARTERLY IFTA REPORT. about your truck’s use of fuel and also regarding the total miles traveled in each state.
From January 1st to March 31th - April 30th
From April 1st to June 30th - July 31th
From July 1st to September 30th - October 31th
From October 1st to December 31th - January 31th
Penalty and interests
You may be charged with fines from $50.00 up to 10% of the total owed on your tax return.
• Departure date
• Origin and destination of the trip (including city and state)
• Distance and jurisdiction travel routes in each state
• Write down the miles, each time you start and finish going through a state.
• Vehicle unit number
Why should I keep for my fuel receipts? Because the IFTA requires detailed control of all your diesel purchases, for this reason, you should keep all your receipts.
Keep all your diesel receipts for 3 years.
Lately, the "California Department of Taxes and Fees" (the new name of the agency responsible for collecting diesel taxes) is doing audits to check if your report matches with your diesel receipts. We know that diesel costs more in California than in Arizona, for this reason, many people put diesel in Arizona and report that they bought it in California.
For any question, please, contact me at 909.390.3656
Visit your agent for more detailed information about the IFTA.