If you are considering getting into the Hotshot Carrier
business, it is important that you totally understand IFTA
and be absolutely certain you understand how the GVWR is
determined so you don't wind up thinking you your GVWR is
under 26,000 pounds when in fact it is over this critical
number. The Gross Vehicle Weight Rating is determined by the
truck and trailer manufacturers and if your combined GVWR is
above 26000# you do need to have the IFTA license or get
individual trip permits for each state each time you enter
it you run which, of course you would normally not want to
do because it is far more expensive.
IFTA is an agreement among all states (except Alaska and
Hawaii) and Canadian provinces (except Northwestern
Territories, Nunavut and Yukon) to simplify the reporting of
fuel used by motor carriers operating in more than one
jurisdiction. Persons who operate qualified motor vehicles
are subject to IFTA licensing.
- Who qualifies for an IFTA license and what is a
"Qualified Motor Vehicle" under IFTA?
You qualify for an IFTA license if you operate your
qualified motor vehicle in any U.S. state or Canadian
province that is a member of the International Fuel Tax
Agreement. To qualify, your vehicle must meet the following
weight requirements:
A vehicle used or designed to transport property is a
qualified motor vehicle if it:
- Has three or more axles; or
- Has two axles and a gross vehicle or registered
gross vehicle weight of more than 26,000 pounds; or
- Is used in a combination that has a combined or
registered gross vehicle weight of more than 26,000
pounds. If you are a HotShot operator, it is
extremely important to understand this qualification.
Don't get caught up in the misunderstanding that you are
not required to have an IFTA license if you don't scale
over 26,000 pounds. If your registered gross vehicle
weight is over 26,000 pounds, you qualify for the
license regardless of what you might scale.
- If you qualify for IFTA but do not choose to
register, you must obtain fuel trip permits to travel
into or through each member jurisdiction.
- Carriers traveling in non-IFTA jurisdictions must
continue to comply with the fuel tax reporting
requirements of those jurisdictions.
- Why should I register for IFTA?
The IFTA license offers several benefits to the
interstate/inter-jurisdictional motor carrier. These
benefits include one license, one set of decals, one
quarterly fuel tax report that reflects the net tax or
refund due. In addition, your fuel tax records will
generally be audited only by your base jurisdiction. These
advantages result in cost and time savings for the carrier
and the member jurisdictions.
- Where can I travel using IFTA Credentials?
Most Canadian provinces and US states are IFTA members.
The jurisdictions listed below are not IFTA members and
IFTA credentials are not valid for travel there:
- United States: Alaska, Hawaii and the District of
Columbia
- Canada: Northwest Territories, Nunuvit and Yukon
Territory
- Mexico: All states and the Federal District
If you plan to travel in these jurisdictions please
contact them for information regarding their fuel tax
reporting requirements.
- Which taxes does IFTA cover?
IFTA covers fuel taxes only. It does not cover road
taxes, weight mileage taxes, or any other jurisdiction
specific taxes. You must continue to pay these taxes
directly to the jurisdictions in which you travel.
- What are the fuel tax rates for IFTA jurisdictions?
You may view, print, or download the fuel tax rates for
all IFTA jurisdictions at
.
- Are there penalties for traveling without valid IFTA
credentials or a fuel trip permit?
Yes. If you travel in an IFTA jurisdiction without valid
IFTA credentials or a fuel trip permit, you may be subject
to a penalty, fine or citation, depending on the
jurisdiction's laws.
- When are IFTA reports due?
Under IFTA, you are required to file quarterly fuel tax
reports. The reporting quarters and due dates are:
|
Reporting Quarter |
Due Date
|
| January -
March |
April 30 |
| April - June |
July 31 |
| July -
September |
October 31 |
| October -
December |
January 31 |
- Are there any exemptions for off-road use or other
unusual uses?
IFTA, Inc. posts lists of exemptions accepted in each
jurisdiction that you might travel. You may find the list of
exemptions at:
. Every attempt is made to keep this
information current but we would recommend that you contact
each jurisdiction before taking an exemption.
- What records will I need?
You must maintain records that will adequately document
all of the information you provide on your quarterly fuel
tax reports.
Generally, you must maintain records to document all
miles you travel - including the date of your trip, route of
travel, total trip miles, and miles traveled in each
jurisdiction. You must also keep all receipts for fuel you
buy and place into your vehicles. If you maintain a bulk
fuel storage facility, you must maintain additional records.
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