Temporary IFTA Permit Archives - Global Multiservices

IFTA, the abbreviated form of the International Fuel Tax Agreement, is well known to almost everyone who travels commercially on the roads of the United States. Though it has been established for the sake of commercial truck drivers, traveling interstate and across borders with Canada, many people are unknown to the concepts of the International Fuel Tax Agreement and its working. This blog is dedicated to telling you all the essential facts about IFTA and how they charge fuel tax, plus I will also tell you how you could use the services of Global Multi Services to get your IFTA Permit and IFTA filing.

What is IFTA

The International Fuel Tax Agreement was signed in the year 1996 between the forty-eight states of the United States and the provinces of Canada. Before 1996, IFTA was known and operating in just a few states of the US. Before the introduction of IFTA, the truckers had to go through a lot of hassle and nuisance of filing fuel taxes in each state that traveled through, and each state had its tax rates too. So it became very fiendish for truckers. Therefore, although it was introduced in 1983, the IFTA was signed by almost all states of the United States, except the two, and provinces of Canada, by the year 1996.

Who are eligible to sign it

The following categories of vehicles are entitled to get an IFTA Permit and file the IFTA Taxes:

  • Those vehicles that travel interstate for commercial purposes and have a gross vehicle weight of at least 26,000 pounds and two axles installed in the vehicle.
  • Those vehicles that travel interstate for commercial purposes and have three or more than three axles installed in them.
  •  And, Those vehicles that travel interstate for commercial purposes and have a gross vehicle weight of more than 26,000 pounds.

How IFTA is reported

The IFTA Filing is done quarterly, and the due date to file taxes is usually the last date of the month following the last month of the quarter.

To file the IFTA taxes you have to keep a thorough data of your travel details such as which states you traveled in, how much distance you traveled in those states, how much fuel your vehicle consumed in the traveled states, and what mileage your vehicle while traveling through those states. And the basis of all these data, one could collect their taxes. But a boon here is that, for which the IFTA was specifically introduced, you just have to pay the taxes according to the tax rates of your base jurisdiction and not according to the tax rates of the states that you traveled through.

How Global Multi Services could help

Though the Government of the United States and Canada has done a tremendous job by introducing the IFTA System, still it did not make the life of truckers as easy as expected. To file the IFTA Taxes, you still have to keep comprehensive data of your travel details and do complex calculations to check how much tax you have to pay, at the end of each quarter. That is when Global Multi Services comes in, our skilled and experienced employees keep all the details of your travel and fuel consumption, and then at the end of each quarter, they meticulously calculate your IFTA Taxes. They could even do your IFTA Filing for you.


Those who have started trucking or trucking business after 1996 might not get the pain and nuisance that truckers operating before 1996 used to go through. Why was that? Before 1996, IFTA was not operating in the whole of the US, but since 1996 IFTA is operating in 48 states of the US, except Alaska and Hawaii, and 10 constituencies of Canada. In this blog, I am going to tell you about the nits and grits of the IFTA, how it has made the truckers’ life easier, and how Global Multi Services is one of the most booming companies in providing all kinds of proficient trucking related services.

What is IFTA?

The IFTA, or also popular as IFTA Fuel Tax Returns, is the abbreviated form of the International Fuel Tax Agreement. This agreement was signed by the 48 States of the US and Canadian Provinces. It allowed the truckers and the fleet owners to pay their fuel taxes quarterly, and also, to pay their taxes based on the fuel charges specific to their base jurisdiction only. Otherwise, before 1996, the IFTA was established only in a few American states but each state used to charge its own fuel tax from the truckers traveling interstate, regardless of where the fuel was purchased. So, by time, this became chaotic, and very expensive too, for the truckers and fleet owners. Plus, as it was not used to be filed quarterly or annually but regularly, it also became an administrative menace for the trucking companies. Now the fuel taxes are just to be filed quarterly, and that too in your base jurisdiction which further distributes it to the states that you maneuvered from in that quarter.

Who are Eligible to get an IFTA Permit

Well, not everyone is blessed with the boon of getting an IFTA Permit as the IFTA has specified some vehicle requirements to get an IFTA Permit and IFTA Decals. The vehicles should lie under one of the following categories to get an IFTA permit:

  • The vehicle should at least have two axles with a maximum weight of 26,000 or 11,797 Kilograms.
  • The vehicles should at least have three or more axles.
  • And at last, those vehicles which have a gross vehicle weight of more than 26,000 lbs or 11,797 kilograms are eligible to get the IFTA Permit.

If your vehicle falls under any of the above categories and you travel interstate or across borders for commercial purposes, you are eligible to get an IFTA permit.

IFTA License & IFTA Decals

Getting into an IFTA Program and having an IFTA Permit are two different things. Anyone can get into an IFTA Program, but to get an IFTA License you have to apply officially with the required IFTA documents, plus your vehicle should also fulfill the requirements asked by IFTA.

To get the IFTA Permit and License you have to apply in your base jurisdiction, or if your state does not comply with IFTA you could apply in the neighboring state. The following list of documents are required to get into IFTA:

  • USDOT Number
  • Registered Business Name
  • Mailing Address
  • Federal Business Number

Once you get the IFTA License you will be given a pair of IFTA Decals for each of your vehicles. And you could also apply for more than one pair of IFTA Decal, which will cost you some $25 for each pair.

How We Can Help:

To file the IFTA reports correctly and enjoy the tax benefits, truckers and trucking companies must keep a comprehensive record of their travel details, fuel consumption, and mileage. The skilled experts at Global Multi Services will help you keep these records efficiently, and we will help you apply for the IFTA permit as well, as we deal with all kinds of trucking permits and services.


Introduction:

The IFTA is a Canadian arrangement with the U.S. states and provinces to allow data on interstate motor carriers working in two or more member states or provinces simpler on taxation on gasoline use. IFTA’s goal is to create and retain a single Fuel Tax License definition for all your registered motor vehicles, enable it to pass across all IFTA jurisdictions and mandate that you record the fuel and mileage consumption for all IFTA member states and the provinces on a single fuel tax return per quarter.

It is used in a more than 26000 pounds or 11,797 kilograms in combination or recorded gross vehicle weight. The cars used for commercial purposes would not be treated as leisure vehicles.

You need to get fuel trip permits to fly in or through every Member authority if you apply as an IFTA or Interstate Recipient, but don’t want to register. The global multi services provides four successive days for non-statutory carriers to join and return to California without receiving a fuel license. Licensed carriers in California often have to buy a fuel trip license, to re-enter California after they depart the region if they do not have a fuel tax certificate. Before joining the state, the California Travel Authorization must be bought and done.

 

Fuel Trip licenses from California are eligible for online buying. If, for example, you are a California-based carrier not approved under IFTA and travel in Nevada (IFTA jurisdiction). You would have to buy a gasoline trip certificate for California before you head back to California.

You may be liable to a penalty, fine, or quote based on the jurisdiction rules, whether you are approaching California or moving under an IFTA jurisdiction without appropriate IFTA or inter-state permit qualifications or a fuel trip permit. You are liable to a tax if you reach California without a legitimate fuel trip permit or IFTA permits. Penalties are between $100 and $500 or higher (the penalty could be more than $500 when you pay gasoline tax). You would still have to buy a petrol journey certificate and will face potential seizures. When this happens, you cannot free the car until you pay your full obligation, plus the automobile seizure expenses.

The criteria for reporting on fuel tax in Non-IFTA jurisdictions would continue to be met by carrier passengers. You must upgrade your IFTA license and order new decals from 1st December of the year. With our online facilities, you can renovate your IFTA credentials.

Once you have extended your license and charged your renewal, we will give you the one (1) California IFTA license for your enterprise. You are requested to duplicate the certificate such that each motor vehicle in your fleet includes a (1) copy.

Conclusion:

For an eligible motor vehicle in your fleet, you earn two (2) decals. The outside of the passenger area of the cab must be fitted with one decal; the second stop must be positioned on the driver’s side in the same spot. Decals for all eligible engines installed in California will be obtained annually when renewed; your Interstate Consumer License must not be renewed.