ExpressIFTA Blog

Wednesday, April 24, 2019

Exemptions That Can Save You Big Money When IFTA Filing

We are days away from the 1st quarter reporting due date, April 30. Making sure you file your quarterly IFTA forms correctly can save you from audit and make sure you aren’t paying too much. As part of getting the correct amount back it’s wise to be up to date on non taxable and exempt IFTA miles.

What IFTA Reporting Is For

IFTA Filing
The International Fuel Tax Agreement (IFTA) is a tax collection and sharing agreement between certain jurisdictions that redistribute fuel taxes paid by interstate commercial carries. IFTA requires commercial carriers to pay fuel taxes proportionally, according to the miles traveled to and from each state, and or province. This is put in place to ensure that each IFTA member gets its fair share of revenue to put towards transportation and roads.

Non-IFTA Jurisdictions are where IFTA credentials do not matter.

Non-IFTA Jurisdictions:


Alaska

Hawaii

District of Columbia

Yukon Territory

Northwest Territory

Nunavut

Mexico

Each jurisdiction has its own unique definition of non-taxable mileage or exemptions. Any of the miles that fall under IFTA jurisdictions are considered non-taxable miles. To see what all applies you can visit the IFTA site. There are three kinds of exemptions, vehicle exemptions, fuel exemptions, and distance. They can vary from year to year, so staying up to date will be beneficial.


There are some states that allow exemptions for driving in certain areas, these could be Indian reservations, private roads and land, certain toll roads, etc.

Most turnpikes are taxable and non-exempt. The only two that are not is the Massachusetts Turnpike and the Cobequid Pass Toll Highway. Carriers that claim these as exempt or non-taxable on their IFTA reports are required to keep the receipt as proof.

Who Pays IFTA Tax

  • Anyone who operates a vehicle with 2 axles and a gross weight or registered gross vehicle above 26,0000 pounds.
  • Anyone who operates a vehicle with 3 or more axles (regardless of weight).
  • Anyone who operates a vehicle with a combined weight of 26,000, including cargo. 

*If you DO NOT operate outside of your state IFTA does not apply to you.

It is also important to note that even if the carrier has not conducted any operations or used taxable fuel for a particular period, a report must still be filed.

Quarterly Tax Reporting Period


Due Dates

*If the last day of the month falls on a Saturday, Sunday or legal holiday, the next business day will be considered as filed timely.


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