International Fuel Tax Agreement
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The International Fuel Tax Agreement (or IFTA) is an agreement between the lower 48 states of the United States and the Canadian provinces, to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. An operating carrier with IFTA receives an IFTA license, a set of decals which are applied to qualifying vehicles. The carrier files a quarterly fuel tax report. This report is used to determine the net tax or refund due and to redistribute taxes from collecting states to states that it is due.
This tax is required for:
- All vehicles with a gross vehicle weight rating or registered gross vehicle weight in excess of 26,000 pounds
- Any vehicle with 3 or more axles regardless of weight
- Any combination of vehicles which exceeds 26000 pounds gross vehicle weight
[edit] Promulgation
Prior to IFTA each state had its own tax system. Trucks had to obtain a tax permits for each state that it operated in. Most states set up Ports of Entry to issue permits and enforce tax collection. This was very burdensome to both the trucking industry and the states. Pre-IFTA trucks in inter-state commerce carried a special plate upon which each states permit sticker could be applied. Truckers called them "Bingo Plates".
