What is IFTA and why do I need it?
Vehicles meeting the following criteria are tax liable and need motor fuel road tax credentials to be operated in all jurisdictions:
- have two axles and a gross vehicle weight or registered gross vehicle weight of more than 26,000 pounds or
- have three or more axles regardless of weight or
- are used in combination, when the combined weight is more than 26,000 pounds gross or registered gross vehicle weight at any time
IFTA is the International Fuel Tax Agreement, an agreement between all states and Canadian provinces, which allows a carrier to register and pay motor fuel road taxes in the carrier's home or base state for all participating jurisdictions. IFTA is beneficial to motor carriers because it eliminates the need for a motor carrier to contact every jurisdiction he intends to operate in to get a motor fuel road tax permit. It also eliminates the need for a motor carrier to file a quarterly motor fuel road tax return with every jurisdiction in which he has traveled. It allows a motor carrier to take advantage of all over-purchase fuel tax credits because one tax return is filed for all jurisdictions.
When do I need to file my tax return?
DMV will mail a tax return to you each quarter. Reporting periods and deadlines are as follows:
|Reporting Period||Filing Deadline|
|January 1 - March 31||April 30|
|April 1 - June 30||July 31|
|July 1 - September 30||October 31|
|October 1 - December 31||January 31|
Note: If a filing deadline falls on a weekend or a legal holiday, the next business day becomes the deadline.