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Do I Need IFTA for Intrastate?

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Do I Need IFTA for Intrastate?

“Do I Need IFTA for intrastate?” is an excellent and important question. Learn more about Starting a Trucking Company. Yes, it is mandatory to submit a completed IFTA return each quarter, even if you don't travel in any of the member jurisdictions or buy any taxable fuel. This requirement is part of the International Fuel Tax Agreement. Failure to comply with this agreement can result in penalties and fines. Make sure to stay on top of your filing obligations to avoid these costly consequences.

What Is IFTA?

The International Fuel Tax Agreement (IFTA) makes fuel taxes easier for motor carriers to manage across state and provincial borders. BOC-3 101: Do I need a BOC-3 for intrastate business? By registering with their base jurisdiction, carriers can pay the appropriate taxes without needing to handle calculations or paperwork in each jurisdiction they drive through. Do you Want to know the BOC-3 Filing? The agreement covers 48 US states and 10 Canadian provinces, allowing a streamlined and effective way of paying fuel taxes.

Who Has To Register for IFTA?

  • Operators of qualifying motor vehicles registered in a jurisdiction that participates in the International Fuel Tax Agreement (IFTA).

  • Vehicles with two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds.

  • Three or more axles, regardless of weight.

  • Any combination of those vehicles if the total gross vehicle weight exceeds 26,000 pounds.

  • Qualifying motor vehicles used to transport passengers for hire (e.g., public transportation) that have three or more axles; and any combination thereof when the total gross vehicle weight exceeds 26,000 pounds.

Recreational vehicles if they are used for business purposes and do not qualify as private passenger-type vehicles.

How Can I Become Registered With IFTA?

If you are looking for the forms you need to apply for your IFTA license and vehicle decals, Moving Authority Association is here to help. Learn more about Biennial Update. You will just have to complete this form and submit it, along with any applicable fees, to the IFTA jurisdiction office of your state. Intrastate Moving Companies California. Your IFTA license will be valid throughout the calendar year from January 1 through December 31. Don't forget to renew your license each year before it expires!

Where Should I Store an IFTA License?

All IFTA-qualified vehicles must prominently display an IFTA decal on both sides of the cab. For business records, a copy of the license should be stored in the office and kept in each vehicle. It is important that these documents are properly maintained for compliance with this program.

Also, any changes to vehicles or fleets must be reported promptly. This ensures that all records remain up-to-date and accurate.
Read more about Broker Freight Package. Failure to comply with these regulations may result in penalties or fines being imposed. Thus, it’s essential to keep your IFTA paperwork updated at all times.

So, I Must Keep Proof of My IFTA Registration in a Vehicle?

That’s correct. Interstate vs. Intrastate: Navigating The Differences. You must keep current copies of your IFTA license in each vehicle that is eligible for an IFTA permit. Additionally, you need to prominently display IFTA decals on both sides of the cab of each vehicle. Remember to always keep these documents up-to-date for compliance and convenience purposes.

How Often Do I File IFTA Tax Reports?

Stay on top of your fuel tax obligations by filing quarterly International Fuel Tax Agreement returns with your jurisdiction office. Do you want to know Broker Mover Package information? Timely filing is critical. To avoid any penalties, make sure that your return and payment are postmarked before the following deadlines:

  • Q1: April 30

  • Q2: July 31

  • Q3: October 31

  • Q4: January 31

Remember, you must still file a return even if no miles were traveled or taxable fuel was used during the quarter. Submitting an accurate and timely return will help ensure compliance with IFTA regulations.

How Will I Collect Mileage & Fuel Purchase Data for My Quarterly Return?

As an IFTA license holder, you are responsible for keeping accurate records for all qualified motor vehicles. The Difference Between Interstate And Intrastate Commerce.This means that you must keep detailed Trip Reports and Monthly Fleet Summaries. Do you want to know CA Number? You are required to store the corresponding IFTA tax return and any support documentation from these activities for four years from its due date. Failure to do so can result in penalties or other consequences. Make sure your records are up-to-date and remain compliant with the necessary regulations.

How Should I Document All My Fuel Purchases?

It is essential that you maintain detailed fuel receipts and/or invoices. Know what is Carrier Agreement. These records should include the date of purchase, the seller's name and address, the quantity of fuel purchased, the type of fuel obtained, the rate per gallon, unit numbers for the vehicle, and the purchaser’s identity. This information must be accurately saved in order to make valid claims.

What’s the Difference Between IRP & IFTA?

  • IRP stands for International Registration Plan and is an agreement among states to register commercial vehicles that travel in more than one jurisdiction.
  • IFTA stands for the International Fuel Tax Agreement and is an agreement between most states and all Canadian provinces that simplifies the reporting of fuel use taxes by motor carriers operating interstate.
  • The purpose of IRP is to ensure uniform registration fee structures, while the purpose of IFTA is to streamline the reporting of fuel consumption taxes.
  • IRP requires carriers to pay apportioned fees based on mileage traveled in each jurisdiction, while IFTA only requires carriers to report their total miles driven within a quarter or year.

My Vehicle Weighs Over 26,000 lbs. Do I Need to Register for IFTA?

Nope. For qualified vehicles, getting an IFTA license and filing quarterly fuel tax returns is the preferred option due to cost efficiency. Learn more about DOT Number Deactivation. However, if you do not wish to obtain an IFTA license, you may purchase a temporary fuel trip permit instead. These permits come in different lengths and prices and can be purchased from certain states, truck stops, and permit services.

What Will Take Place If I Do Not Have an Active IFTA License or a Temporary Fuel Permit?

Be prepared for potential delays or even penalties if you fail to keep up with your IFTA requirements. Numerous instances have been reported of drivers being put out of service due to violations of IFTA regulations. Do you want to know Dot Authority? Also, the financial cost of noncompliance can be quite substantial, as each state has its own set of fines for not paying fuel taxes on time.

Here is an example of state-specific IFTA regulations. Interstate vs. Intrastate. California law imposes a minimum penalty of 25 percent of the tax due or $500 - whichever is greater - plus interest and the unpaid tax amount in order to avoid having the vehicle seized.

What Is Unified Carrier Registration (UCR)?

  • Unified Carrier Registration (UCR) is a federal program that requires motor carriers, freight brokers, and leasing companies to register their business with the Federal Motor Carrier Safety Administration (FMCSA).
  • UCR fees are based on the number of vehicles operated by a motor carrier.
  • The purpose of UCR is to ensure compliance with federal laws and regulations governing interstate transportation of goods, prevent fraudulent or unsafe practices in the industry, and provide an equitable way to collect registration fees from those required to pay them.
  • By registering with UCR, businesses are able to receive a Certificate of Compliance which must be kept in the company's records and presented upon request by law enforcement officers during roadside inspections.

Which States Enforce a Highway Use Tax?

New York State requires commercial motor vehicles with a gross weight of 18,000 pounds or more to pay the Highway Use Tax (HUT). Kentucky demands that any vehicle with a gross weight of 60,000 pounds or greater acquire a Highway Use License (KYU). Learn more about Movers Association Membership. Additionally, New Mexico enforces the Weight Distance Tax for any vehicle exceeding 26,000 pounds. Finally, Oregon also has a Highway Use Tax for vehicles over 26,000 pounds.

Summary: What Is IFTA in the Transportation Industry?

  • IFTA (the International Fuel Tax Agreement) is an agreement between all US states and Canadian provinces that provides a system for collecting and transferring taxes on motor fuel used in interstate travel.
  • It requires licensed carriers operating qualified motor vehicles to report their fuel use, mileage, and taxes due on a quarterly basis.
  • Carriers are required to pay the difference if they have traveled through a jurisdiction with higher fuel tax than their home jurisdiction.
  • Additionally, IFTA simplifies the accounting process by allowing carriers to submit one report per quarter rather than filing individual reports in each jurisdiction they operate in.
  • The goal of IFTA is to make it easier for transportation companies to comply with fuel tax laws.

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