IFTA Question

Can I use the tax rate on my fuel receipt or do I have to get the rates from somewhere to file my state reports?

 

Tax rates per gallon per state should be in your ifta quarterly packet.
And don't forget surcharge states.

 

Sorry if this is a basic question we're just starting to look at going beyond last mile. Let me try and ask another way. For IFTA to I get credit for the actual tax I pay, or is it a calculation based upon an average that the government provides?

 

You just need to keep track of how many miles and how many gallons you purchase in each state.

You plug in those numbers in the computer does the rest.

 

The tax you get credit for is how much fuel you bought in every state time's the tax rate of that fuel.

Then you have to look at the actual miles driven and what your fleet fuel economy is.. based on miles/gallons total for that quarter.

Then you figure out how many gallons you theoretically burnt in that state deshawn fleet MPG and miles driven... to determine whether you have a surplus or deficit of tax paid.

Muddy enough? Lol

Definitely one way computers have improved the process

 

This is very hard, because of fundamental misunderstanding of IFTA. It's not hard. Each state has already collected the amount of tax based on how much you have purchased. They are entitled to how much you have used by driving in that state. Most states allow you to file online. You put in how many gallons you bought in each state and how many miles you drove. It will automatically calculate your average mpg, and based on that how many gallons you needed to run in each state. It will then calculate how much you paid, and your over and under purchase, and the dollar amount. Purchase more from states that have a lower rate, then you will owe money. Purchase at states with higher tax rate, then you will get a refund.

Your state will send the money to the states that are owed, and will collect from the states that owe them.

 

You can find the tax rates at the IFTA website. IFTA, Inc.
Also take note that some states also have a fuel surcharge that is due in addition to the normal tax rate. Nobody knows what the fuel surcharge is for, other than just another way for the state to gouge you for more money.

 

At the end of the day, you are basically paying tax on the fuel you burn in any given state. It is setup to be a fair way for States to collect fuel taxes owed to them.

 

The fuel surcharge is to make the price more appealing! Many stupid drivers would fuel in Indiana, rather than illinois because the pump price was less than Illinois. Regardless of how much was eventually paid, most states would rather collect some up front and I'm guessing they also would prefer that you buy at their truckstops.

 

Thanks everyone I appreciate all the feedback.

So lets say in state X I pay $5 in tax which is 1% (just making this up). All other states equal.

Then the tax rate fluctuates and the average for the quarter for state X is say .5%, so I paid (pretend) $2.50 more than what is in the report rate wise. Do I get credit for the $2.50 extra I paid?