Wondering what is IFTA and why is it important for American truckers? This complete guide will take you through the International Fuel Tax Agreement details.
IFTA stands for the International Fuel Tax Agreement. It is a tax collection agreement between the 48 contiguous states of the United States and the 10 provinces of Canada. It is designed to reduce the administrative burden of reporting motor fuel taxes in multiple jurisdictions. The United Mexican States (Mexico), the District of Columbia, Alaska and Canada’s Northwest Territories, Nunavut Territory and Yukon Territory are not members of IFTA. Carriers travelling in these jurisdictions must file certain reports as mandated by these jurisdictions, even if they have an IFTA license. Motor carriers that travel only between Texas and Mexico are not eligible to apply for an IFTA license and must either obtain a Texas interstate trucker license or purchase a fuel trip permit each time a qualified motor vehicle enters Texas.
A qualified motor vehicles a motor vehicle used, designed, or maintained fortransportation of persons or property. They must:
Qualified motor vehicles do not include recreational vehicles. Farm plated vehicles and school buses, meeting the definition of qualified motor vehicle must obtain an IFTA license and fuel decals if travelling in another jurisdiction that requires them.