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Omnitracs Knowledge Base

Tax Manager User Guide

Tax Manager User Guide
The International Fuel Tax Agreement (or IFTA) is a tax collection agreement by and among the 10 Canadian provinces and the 48 continental United States to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. Omnitracs One is designed to make the reporting of IFTA tax information seamless to your local jurisdiction.

 

Overview

The International Fuel Tax Agreement (or IFTA) is a tax collection agreement by and among the 10 Canadian provinces and the 48 continental United States to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. Omnitracs One is designed to make the reporting of IFTA tax information seamless to your local jurisdiction. 

Introduction

As commercial motor vehicles buy fuel, any fuel tax paid to the states is credited to that licensee's 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. 

Excluded Jurisdictions 

  • 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, Nunavut, and Yukon Territory
  • Mexico:  All states and the Federal district

 

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