As commercial motor vehicles buy fuel, any fuel tax paid to the states is credited to that licensees account. At the end of the fiscal quarter, the licensee completes the fuel tax report, listing all miles traveled in all participating jurisdictions and all gallons purchased in all jurisdictions. Then the average miles per gallon is applied to the miles traveled to determine the tax liability to each jurisdiction. Three states—Kentucky, New Mexico, and New York—have weight-mile taxes in addition to the standard fuel tax. Oregon has just a weight-mile tax. Any fuel taxes due (or refund due) are then paid to (or by, in the case of a refund) the base jurisdiction that issued the license. The member jurisdictions then take care of transferring the funds accordingly. Audits are conducted only by the base state and fuel bonds are rarely required.

IFTA requires payment to the base jurisdiction in that filing month and no later or the company will be fined.