The International Fuel Tax Agreement (IFTA) is an interjurisdictional agreement among U.S. states and Canadian provinces that requires quarterly reporting of fuel taxes for qualified motor vehicles.
Key Points
- IFTA licenses are required for vehicles over 26,000 lbs or with three or more axles operating in multiple jurisdictions
- Quarterly returns are due by the last day of the month following each quarter
- Carriers must maintain detailed mileage and fuel purchase records for each qualified vehicle
- Base jurisdictions collect taxes and distribute them to other participating jurisdictions
Why It Matters
IFTA simplifies fuel tax reporting for interstate carriers by consolidating reporting into a single quarterly return filed with the base jurisdiction, rather than filing separate returns in each jurisdiction where the carrier operates.