The IFTA only applies to vehicles that are a certain size or weight. If your vehicle has three or more axles, then it qualifies for the IFTA, regardless of its weight. If your vehicle has two axles and weighs more than 26,000 pounds (or it's part of a combination that exceeds the same weight threshold), then it qualifies for the IFTA.
Notably, the IFTA only applies to commercial motor vehicles (CMVs). Therefore, if you have a large vehicle, like an RV, that meets the weight requirement, you don't have to sign up for the IFTA.
IFTA licenses are a great idea for any trucker who regularly operates on an interstate basis. This way, you can file just one return for your vehicle, as opposed to having to file your fuel tax returns individually across each state or province you haul in. Furthermore, if you have multiple trucks, you can simplify all of their returns into just one!
Some people decide that they would prefer not to get an IFTA license. Usually, this is because they only leave their base jurisdiction a few times per year, making the IFTA an expensive investment with little return. If you're one of these people, then you should consider getting a fuel tax permit for each of the states that you'll travel through. These permits allow you to be exempt from the usual fuel tax requirements for a small flat rate.
Your base jurisdiction is the state or province where your vehicle is registered. So, if your business and truck are registered in Arkansas, then Arkansas is your base state.
The 48 contiguous states of the United States and the 10 Canadian provinces are members of IFTA. Alaska, Hawaii, and the Canadian territories (the Northwestern Territories, Yukon, and Nunavut are not members.)
No, your registration is only valid unless you get the IRP. This is why IRP and IFTA are usually mentioned together; they are both key for interstate truckers.
No, trailers are exempt from the IFTA. Only commercial motor vehicles need to get IFTA decals. However, a trailer can, when used as part of a combination, push a tractor into needing the IFTA. They just don't need them on their own.
You'll get two pieces of identification that will prove your IFTA registration to the authorities. The first is your actual IFTA license, which you'll need to make copies of to keep in each of your vehicles. You should keep the original at your business's address. You'll also get two decals to place on the outside of your vehicle. One will go on each side of your cab. This allows the authorities to quickly confirm that you have IFTA registration.
IFTA returns are due once per quarter. The first quarter of the year lasts from January through March. For this period, your returns are due on April 30th. The subsequent deadlines are July 31st, October 31st, and January 31st of the following year.
Missing your due date will incur a penalty. These penalties will vary based on your base jurisdiction, but they will be either a flat rate or a percentage of your tax liability. They will also increase over time, so make sure you pay them quickly!
Yes, even if you don't have to pay fuel taxes this quarter, you still need to file your return. Luckily, it'll be an easy one to file!
You'll need to keep records of your mileage driven through each jurisdiction. These should include:
—The date of your trip
—Your route
—Total mileage and mileage in each jurisdiction
—Receipts for any fuel you buy
—Any intermediate stops you make along the way
You have to keep these records in storage for multiple years afterwards. Each jurisdiction has different requirements for how long you have to keep your records, but it's honestly best to hold onto them for around 5 years. That way, you should be compliant with the IFTA's record-keeping rules.
No, you'll have to renew your IFTA license each year. You must submit your renewal by December 31st of each year. If you need to make changes, you'll need to note those changes with your renewal.