International Fuel Tax Agreement (IFTA)

What is IFTA?

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The International Fuel Tax Agreement (IFTA) is a program that simplifies the reporting of motor fuel use taxes. As large commercial vehicles can travel through multiple states without stopping for fuel, a motor carrier may travel through a state and not purchase any fuel and therefore, does not pay that state for the use of their roads. 

The International Fuel Tax Agreement (IFTA) is an agreement between all 48 contiguous states and 10 Canadian provinces. Each state/province is called a “member jurisdiction.” The state in which you obtain your IFTA credentials is called your “base jurisdiction.”

IFTA is not an additional tax. It redistributes the tax to the state where the fuel was actually used versus where it was purchased. 

Each jurisdiction charges its own tax rates on each of the various fuel types, and may define what constitutes taxable activity and what is tax-exempt. IFTA carriers only need to file one tax return each quarter with their base jurisdiction for fuel consumed in all member jurisdictions. IFTA is often used in conjunction with the International Registration Plan (IRP) for qualified carriers.  

Any motor carrier based in an IFTA member jurisdiction, operating a qualified motor vehicle in two or more member jurisdictions may apply for IFTA credentials. For more information on which motor carriers qualify, visit the IFTA Application Process web page. Visit the IFTA website for more information about the International Fuel Tax Agreement.
 

IFTA Webinar Presented to the Colorado Motor Carriers Association (CMCA)