International Fuel Tax Agreement: IFTA

IFTA

International Fuel Tax Agreement: International fuel tax agreement is a pertinent agreement between the 10 Canadian provinces and 48 states. It requires all motor carriers to account the amount of fuel they use inside the state and pay fuel taxes for them accordingly. This in turn helps the authority to collect taxes from the motor carriers who use the roads within the jurisdiction and not on the motor carriers who just fuel their vehicles in the state.

It is mandated to file quarterly reports in base jurisdiction. As per this agreement, IFTA license has to be carried for motor vehicles which is designed and used to transport both property and persons or has any of the properties like; reporting a gross vehicle weight is about 26,000 pounds and has two axles, has axles equal to or greater than 3 irrespective of the weight of the vehicle or if it is being used in combination.