IFTA License: A Solution from the Fuss of Paying Fuel Taxes in Each State
April 26, 2021 0IFTA DecalIFTA Fuel Tax ReturnsIFTA PermitIFTA ProgramTemporary IFTA Permit
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 International Fuel Tax Agreement (IFTA License), 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 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.
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 a License you have to apply officially with the required 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:
- USDOT Number
- Registered Business Name
- Mailing Address
- Federal Business Number
Once you get the 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 fuel tax 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 experts at Global Multi Services will help you keep all records efficiently, and help you to apply for the IFTA permit as well, as we deal with all kinds of trucking permits and services.