INTERNATIONAL FUEL TAX AGREEMENT (IFTA)
The International Fuel Tax Agreement (IFTA) is a cooperative agreement among the lower 48 U.S. states and Canadian provinces that simplifies the reporting of fuel use by motor carriers operating in multiple jurisdictions. Under IFTA, carriers only need to file one quarterly fuel tax return with their base jurisdiction, which then handles the distribution of the tax to the various states or provinces in which the carrier operates.
WHO NEEDS THE SERVICES:
Interstate Motor Carriers: Any motor carrier that operates vehicles in multiple U.S. states or Canadian provinces and has a gross vehicle weight (GVW) of over 26,000 pounds, or vehicles with three or more axles, is required to register for IFTA.
Owner-Operators: Independent truck drivers or small fleet owners who cross state lines in their operations must comply with IFTA regulations.
Fleet Managers: Companies managing fleets that operate across different states or provinces need IFTA to streamline their fuel tax reporting and ensure compliance.
The International Registration Plan (IRP) applies to commercial vehicles that meet the following criteria:
The vehicle is engaged in the transportation of goods or passengers.
The vehicle possesses two axles and has a gross vehicle weight or registered gross vehicle weight that surpasses 26,000 pounds, or
The vehicle is equipped with three or more axles, regardless of its weight, or
When used in a combination, the total weight of the setup exceeds a gross vehicle weight of 26,000 pounds.