Staying aware of the rules and regulations can help drivers and carriers to make wise decisions and streamline their operations. And one such necessary regulation is the International Fuel Tax Agreement (IFTA), a cooperative agreement between the 48 states of the US and ten provinces of Canada. It permits inter-jurisdictional reporting for the fuel that vehicles consume with a single fuel tax license.
IFTA mainly aims to establish and maintain the concept of using a single fuel license for interstate carriers and single administering base jurisdiction for each possessor of license. However, Hawaii, Alaska, and the Canadian territories do not take part in it. Whoever is an operating carrier with IFTA gets an IFTA license as well as two decals for every qualifying vehicle. A quarterly fuel tax report is filed by the carrier, which is used to figure out the net tax or refund due and redistribute the collected taxes from states to states that are due.
Our experts at Global Multi Services are adept at processing IFTA permits and helping businesses get trucking permits post-haste.
Who Qualifies for IFTA
The tax is basically required for vehicles:
- Having two axles and a gross vehicle weight (GVW) rating or registered GVW weight over 26,000 lbs or
- Having three or more axles regardless of their weight, or
- Having weight over 26,000 lbs when combined with GVW
If you’re eligible for the IFTA account, our experts can quickly provide you one.
QUATERLY IFTA FILING
With an IFTA account, you have to report quarterly driven miles of every motor carrier to enable BOE to charge your tax accordingly. Besides ensuring the accuracy of you filed tax, our experts also help you calculate miles completed and fuel consumed according to the states you drive.
QUATERLY NEW MEXICO FILING WDT
New Mexico Weight Distance Tax WDT is imposed on owners, operators, and registrants of interstate and intrastate carriers with a GVW of 26,000 lbs or more. This tax is determined by the weight of the vehicle and miles traveled in the highways of New Mexico. All the truck owners must have WDT permit if they want to operate in New Mexico and report their miles quarterly.
QUATERLY KENTUCKY FILING KYU
The Kentucky Highways Use Tax (KYU) is calculated based on the miles covered by your vehicles in Kentucky. The state requires all the vehicles having GVW of 60,000 lbs or more to obtain a one-time temporary KYU permit and report their miles quarterly.
MONTHLY OREGON FILING
The state of Oregon requires trucking companies to obtain Oregon truck permits even if your carriers have an IFTA license. Unlike New Mexico and Kentucky, you have to report the mile covered by your trucks monthly.
QUATERLY NEW YORK FILING HUT
New York State imposes a highway use tax on trucking companies that operate their vehicles on NY public highways (excluding NYS Thruway’s toll-paid section). The tax rate is determined by the gross vehicle weight and the method you choose to report your taxes. Additionally, you must obtain a certification of registration and decal for each carrier to receive a HUT.