The International Fuel
Tax Agreement (IFTA) is a pact between the lower 48-states and the ten Canadian
provinces. It requires all interstate motor carriers to report fuel taxes.
However, the agreement doesn’t affect Hawaii, Alaska or the three northern
IFTA was put in place to
replace the old fuel tax system. Previously, trucks were required to have a
separate decal for every state they operated in. IFTA simplifies the reporting
and paying of taxes.
The IFTA pact is
intended to simplify the hassle of reporting fuel tax for trucking companies.
This includes owner-operators who operate across IFTA jurisdictions. The agreement applies to all trucks meeting the qualifications
A. Those with two axles
and a gross vehicle weight rating or registered gross vehicle weight above
B. Those of any weight
which have three or more axles
C. Any combination of
vehicles with a total gross vehicle weight or weight rating above 26,000 pounds