International Fuel Tax Agreement (IFTA) is a joint agreement between the continental U.S. states and Canadian provinces to make it easier for motor carriers operating across jurisdictions to report fuel taxes. It was developed to reduce the administrative load on interstate trucking companies and apportion tax equal treatment to fuel-using jurisdictions.
Key IFTA definitions include:
- Qualified Motor Vehicle: Any vehicle used, designed, or maintained for transporting people or goods, with two or more axles exceeding 26,000 pounds or three or more axles, regardless of weight.
- Base Jurisdiction: The state or province where a carrier is registered needs to file IFTA reports and pay fuel taxes, which are then redistributed to other jurisdictions.
- IFTA Sticker:Â A sticker displayed on qualified vehicles indicating IFTA registration, required for legal operation across IFTA jurisdictions.
- IFTA Quarterly Reports: Regular reports filed by carriers to track miles driven and fuel purchased in each jurisdiction, used to calculate owed taxes or refunds.
IFTA simplifies compliance for fleets by replacing individual permits for each state or province with one unified system. TruckX offers fleet management solutions that automate IFTA reporting, including accurate mileage tracking, fuel monitoring, and jurisdiction-specific data collection. This reduces errors, saves time, and ensures compliance, allowing trucking companies to focus on efficient operations while meeting IFTA requirements seamlessly.
