The Department of Revenue is processing 2023 income tax returns. For more information, please read the Department's announcement.

 
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IFTA Frequently Asked Questions

Colorado does not charge a fee for the license or decals. Visit the Decals web page and License Application web page to learn more.

IFTA is not an additional tax to the tax paid at the pump or on bulk fuel purchases. IFTA is an inter-jurisdictional (inter-state/province) agreement to redistribute fuel taxes. The IFTA program redistributes fuel taxes from where you purchased the fuel to where the fuel was used. Visit the IFTA web page for more information about the program. Some jurisdictions may have additional reporting and tax/fees requirements.

Any person who operates a qualified motor vehicle(s) in two or more member jurisdictions and who has Colorado as their base jurisdiction is required to obtain an IFTA license. For more information, visit the IFTA Colorado Qualifications web page.
 

Although IRP and IFTA are both agreements between the 48 contiguous states and 10 Canadian provinces. IRP is an agreement to recognize the registration of commercial motor vehicles registered by other jurisdictions and provides for payment of apportioned licensing fees based on the total distance operated in all member jurisdictions. IFTA is an agreement to redistribute fuel tax based on where the fuel was used instead of where the fuel was purchased. The license requirements for IFTA are available on the IFTA Application Process web page. Information on the International Registration Plan (IRP) is on the Division of Motor Vehicles (DMV) website.
 

If you have a lease agreement which states another entity is responsible for reporting and paying IFTA fuel taxes, complete the IFTA Lease Agreement Certificate (DR 7511). The reporting entity (lessee) is responsible for acquiring decals from the Department.

A licensed IFTA carrier (lessor) who enters into a lease agreement during the year must send a written request for closure of their IFTA account and return their license and decals to end their reporting obligation. The carrier's account will be closed at the end of the quarter in which the closure request, license and decals are received by the Department. If the lease agreement is terminated, the carrier (lessor) should return the license and decals to the reporting entity (lessee).
 
 

Correctly completed applications and decal requests are generally fulfilled within 3 business days of receipt of the request and are generally mailed out (USPS) the next business day. 

If the application is incomplete or does not have the required information, notification will be sent out within 3 business days. 

If your account is not in good standing, such as if you have a tax balance due or missing returns, your account must be in good standing before the Fuel Unit is able to approve a license or issue decals. 

Decal requests can only be approved for accounts in good standing. If there is a balance on your account or missing returns, you must bring your account currently prior to the Fuel unit issuing additional decals. 

For accounts in good standing, decals requests are generally fulfilled within 3 business days of receipt of the request and are generally mailed out (USPS) the next business day.

For expedited delivery, you may request expedited shipping by FedEx by providing a FedEx account number and requesting overnight delivery. The FedEx account provided will be charged for the requested service.

Taxable gallons are the gallons used while traveling through each jurisdiction and is calculated by dividing the total taxable miles by the average miles per gallon. Miles driven while traveling on a fuel tax trip permit are excluded from the taxable gallons calculation. Tax paid gallons are the gallons purchased and placed in the propulsion tank.

Fuel taxes are included in the price of fuel purchases. Reporting all of the purchases for which you have records, as “Tax Paid gallons” will reduce the amount owed when filing your return.  

Follow the online instructions for setting up a Revenue Online account. 
 

Submit a Tax Information Designation and Power of Attorney for Representation (DR 0145) form authorizing a third party to either discuss the account or file on your behalf. If you are authorizing a third-party authorization to discuss the account only, you will need to submit a DR 0145 form with Tax Information Authorization (TIA) selected. To have a third-party file on your behalf, sign claim forms, make changes to your account, or advocate for you, you will need to submit a DR 0145 form with Power of Attorney (POA) selected.

This form can be emailed to us at DOR_FuelTax@state.co.us, submitted by secure web message through Revenue Online, or mailed to: Colorado Department of Revenue, Fuel Tax Room 200, P.O. Box 17087, Denver CO 80261.

Submit the Business Closure (DR 1102) form as an attachment to a secure web message through your Revenue Online account or by mailing to Colorado Department of Revenue, Fuel Tax Unit, P.O. Box 17087, Denver, CO 80217-0087.

Once the closure request is processed, you will receive an acknowledgement letter with confirmation of the last required filing period. A return must be filed for the quarter the account closure request is received. 

The International Fuel Tax Agreement (IFTA) is governed by Colorado statute and the IFTA Articles of Agreement. Colorado can not issue an IFTA license or decals without the carrier having a qualified motor vehicle as defined in the IFTA Articles of Agreement, R245.

If you do not have an IFTA qualified vehicle, you do not need decals. If you are contracting with other vehicle owners, be sure to submit an IFTA Lease Agreement (DR7511) form, signed by both parties and a copy of the vehicle registration(s). 

Diesel Exhaust Fluid (DEF) is a liquid that is run through the engine’s exhaust stream to reduce emissions of Nitrogen Oxide (NOx). DEF is not considered a fuel for IFTA purposes. 

An IFTA fleet is all qualified motor vehicles licensed by a carrier under the International Fuel Tax Agreement (IFTA).
 

A person/entity that operates a motor vehicle that transports property or passengers on any highway in Colorado, or who authorizes operation of such a vehicle.

Alaska, USA; District of Columbia (DC), USA; Nunavut, Mexico; Hawaii, USA; Northwest Territories, Canada; and Yukon Territory, Canada are not part of the International Fuel Tax Agreement (IFTA).

IFTA returns are reported on the four quarterly calendar periods:

Period Due Date
January 1 through March 31 April 30
April 1 through June 30 July 31
July 1 through September 30 October 31
October 1 through December 31 January 31

If the due date falls on a weekend or state holiday, then the due date is the next business day. 

Gallons of fuel purchased and placed in the supply tank of a qualified vehicle in each jurisdiction. When fuel is withdrawn from bulk storage, only report those tax-paid gallons removed for use in your qualified motor vehicles during the reporting period. Fuel remaining in storage cannot be claimed until it is used. Round to the nearest gallon when reporting the tax paid gallons on your quarterly tax return.

The "Total miles" in column 4 of the IFTA return is the total of all taxable and nontaxable miles traveled during the reporting period by every qualified vehicle in your IFTA fleet.

The total tax paid gallons is the total of all fuel purchased and placed in the supply tank of every qualified vehicle in your IFTA fleet during the reporting period.