Whether a local truck requires IFTA depends on its operating area and vehicle classification. IFTA (International Fuel Tax Agreement) applies to commercial motor vehicles engaged in interstate operations—those traveling across state or provincial borders within the 48 U.S. states and Canadian provinces that participate in the agreement.
Local trucks operating solely within the borders of one state, also known as intrastate vehicles, generally do not need to register for IFTA. Instead, they are subject to the fuel tax reporting requirements of their state. However, if a truck occasionally crosses state lines or participates in interstate commerce, IFTA registration becomes mandatory.
To qualify for IFTA, a vehicle must:
- Weigh over 26,000 pounds (gross vehicle weight).
- Have three or more axles, regardless of weight.
- Operate in at least two IFTA jurisdictions.
For local trucking companies, it’s essential to assess whether their vehicles are involved in interstate activities, even occasionally, as this triggers IFTA compliance. Not registering when required can result in fines and penalties.
TruckX simplifies compliance for fleets operating locally and interstate by offering tools like GPS tracking and automated mileage reporting. With TruckX, fleet managers can easily identify vehicles needing IFTA registration, ensuring smooth operations and regulatory adherence. Even if your fleet operates locally, having clarity on IFTA rules can save time and prevent costly compliance issues.
