International Fuel Tax Agreement

International Fuel Tax Agreement

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. Alaska, Hawaii, and the Canadian territories do not participate. An operating carrier with IFTA receives an IFTA license and one decal for each qualifying vehicle it operates. 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 motor vehicles used, designed, or maintained for transportation of persons or property and:

  • Having two axles and a gross vehicle weight rating or registered gross vehicle weight in excess of 26,000 pounds, and/or
  • Having three or more axles regardless of weight, and/or
  • Is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle or registered gross vehicle weight.

Exceptions exist for Recreational Vehicles (such as motor homes, pickup trucks with attached campers, and buses when used exclusively for personal pleasure by an individual). Some states have their own exemptions that often apply to farm vehicles or government vehicles.

Read more about International Fuel Tax Agreement:  Promulgation, How It Works, Official Site

Famous quotes containing the words fuel, tax and/or agreement:

    It is now many years that men have resorted to the forest for fuel and the materials of the arts: the New Englander and the New Hollander, the Parisian and the Celt, the farmer and Robin Hood, Goody Blake and Harry Gill; in most parts of the world, the prince and the peasant, the scholar and the savage, equally require still a few sticks from the forest to warm them and cook their food. Neither could I do without them.
    Henry David Thoreau (1817–1862)

    As a Tax-Paying Citizen of the United States I am entitled to a voice in Governmental affairs.... Having paid this unlawful Tax under written Protest for forty years, I am entitled to receive from the Treasury of “Uncle Sam” the full amount of both Principal and Interest.
    Susan Pecker Fowler (1823–1911)

    No one can doubt, that the convention for the distinction of property, and for the stability of possession, is of all circumstances the most necessary to the establishment of human society, and that after the agreement for the fixing and observing of this rule, there remains little or nothing to be done towards settling a perfect harmony and concord.
    David Hume (1711–1776)