Understanding ifta and where to buy fuel

Discussion in 'Ask An Owner Operator' started by Wespipes, Jul 6, 2021.

  1. Wespipes

    Wespipes Road Train Member

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    So I owed $380 this quarter. Most prior was $200. Granted I've been running more than I like due to rates being high. My question is, is it really better to go by net state price or discount price? Is it better to owe a few hundred each quarter and be paying more at the pump at times? Or to save at the pump? I've just been finding the cheapest discount price and buying that. $380 was 25k miles average 6.10 mpg
     

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  3. Doealex

    Doealex Medium Load Member

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    Go with the net price, avoid high toll/high infra states if you can.
     
  4. dunchues

    dunchues Medium Load Member

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    Pay the lowest base price for the fuel . You're paying ifta for the miles you drive in each state whether you buy fuel there or not, so whether you get a refund of ifta paid or have to pay in to balance the account its exactly the same amount of money, it's all down to state miles driven. There's an app called fuelbooks that if you program your route and select price less ifta will give you a good idea of the cheapest fuel on route, although company discounts might change things about a bit.
     
  5. bad-luck

    bad-luck Road Train Member

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    It is best to always pay the lowest net price for fuel. However just expect to owe every quarter. And if you do a lot of miles in Pennsylvania or California and don't buy fuel there expect to owe a substantial amount.
     
  6. Concorde

    Concorde Road Train Member

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    Net..the price before state tax is added.
    Personally I can care less what my ifta bill is each quarter..it’s due every quarter and I don’t need any states holding my money.

    Unless you’re very irresponsible with your money..
     
  7. wis bang

    wis bang Road Train Member

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    We are in NJ and PA and NY and CT used to be more expensive [more than double] and we always paid cause our fuel [all bought in NJ] was worth less so we paid. Then NJ doubled the fuel tax and I now get credit every quarter because the 'value' of my fuel credits doubled in value.
     
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  8. loudtom

    loudtom Road Train Member

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    Take the price of fuel and subtract the amount IFTA takes from that state. When you compare that to another state, whichever is the lowest will save you the most money. You might save $500 at the pump and owe $475 on your IFTA, meaning you saved $25 for that quarter.

    I kept track of tax rates using this site.
    https://www.iftach.org/taxmatrix4/Taxmatrix.php

    I saved a little bit of money, but eventually opted to just fuel more often. If you run the same routes a lot, you can plan your fuel stops to save you the most money, though.
     
  9. bryan21384

    bryan21384 Road Train Member

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    I'm not sure which is better as I am a company driver, but a fleet owner told me to find the cheapest fuel in the highest tax states. For example, fuel maybe 3.89 in PA at the corporate truck stops, but a mom and pop may be 3.39. You'll be winning because you'll be ahead traveling anywhere. Then you have to avoid buying fuel in places like New Mexico or Oregon he also told me. They got some other tax going on but they don't do IFTA. One his drivers got fuel in Oregon and he deducted 35 dollars from his settlement due to that tax....perhaps another member can shed light on it for me.
     
  10. Rideandrepair

    Rideandrepair Road Train Member

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    It just hit me what you mean. $3.38 a gallon w/.38 Ifta= $3.00 net cost. $3.38 a gallon w/ .20 Ifta,- .18 discount= 3.00 net cost. One way you put out $338 for 100 gallons. The other way you put out $320 for 100 gallons. One way you’ll have $38 in credits towards you’re Quarterly settlement, The other way, you’ll have $20 in credits. Either way, each State will charge what’s owed for the quarter. So it’s a wash. Either pay now or pay later. Just include the discount when available into the net ( minus Ifta per State ) price. Buy the lower net price fuel. You’ll come out ahead, all said and done.
     
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  11. bzinger

    bzinger Road Train Member

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    Toll roads have nothing to do with fuel tax and its a pay now or pay later system based on miles traveled and fuel burned in each state and is one reason carriers love qaulcomn.
    I'm Nebraska based and mostly run ny , NJ and Penn and back ...if I want to owe the least amount per quarter I hog up on fuel in Illinois, Indiana, Pennsylvania and New York but in the long run you are going to pay either way ...now or later.
     
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