What is IFTA?

is there a place online you recommend to get a chart with each state's fuel tax? i'll go ahead and google it to see if i can come up with anything in the mean time.

 

I have a copy of the list. I've already done my taxes. I think I can post a copy of it here. I lightened it, so you should be able to read it ok.
Our base state was FL and we moved to TN. We only ran one of the trucks for 3 weeks in October before transferring the registration. We never bought fuel in FL, so we're going to get $55.00 back.

 

Learning the biz and trying to understand IFTA. Here's how I understand it.

You submit your payment to your home state. With a break out of states you drove in, with how many miles you drove in each state, how much fuel you bought in each state and how many total gallons you consumed.

Your tax for each state is determined by your average MPG. Your total miles for the qtr by your total gallons purchased for the qtr.

Then based on your mpg, total gallons of fuel consumed in each state is calculated off the number of miles driven in that state. You owe for each gallon consumed in that state the tax based on that states current per gallon tax rate.

If the total you paid in fuel taxes over the qtr exceeds what you owe, then IFTA divies it up, pays out all the states and refunds/credits you the difference. If you haven't paid enough, you send in a check to cover.

Thanks, M

 

It would be so much easier if EVERY state just had the same tax for diesel, eliminating need for IFTA altogether. Less paperwork for everyone, and no aneurysms. But I guess that would make things too easy for us truckers. They can't make it TOO easy for us to make good money right? lol

 

Then you'd have problems with states not getting money they would otherwise be due as trucks rolled through without buying any fuel. The current system ensures you pay your fair share based upon where you drive, NOT where you fuel. Would you prefer to calculate how many gallons you were using as you went along to be sure to stop somwehere in EVERY state to buy enough fuel to cover your trip through? Might not be too bad if you're on a 4-day loop through Texas...but if you're in the east passing through 6-8 different states, you'd have to stop 6-8 times for a splash of fuel.

Personally, I'll take what we've got.

The other problem I have with "every state charging the same tax" is that NO state will lower their fuel tax...which means if that happens, EVERY state will be on par with CA, NY, and IL...so you'll be paying a lot more overall.

 

I know NJ sells at some of the lowest prices in the country, but not sure what they tax at. I always wondered how it panned out if you bought most of your fuel in NJ but operated most miles in PA and OH.

I used to live in OR and yeah it's one of the worst states in the country to own and operate a truck or trucking company. I always wondered why didn't just get with the program and tax fuel like every other state does and do away with the hopelessly complicated weight/mile tax scheme. Same thing with NY and KY. They could just raise the fuel tax a touch and get rid of the extra HUT and KYU crap.

 

The whole IFTA system needs to be rethought. I think it should be based more on weight miles rather than average fuel economy. When you have 2 trucks both on 5 axles each weighing 80,000 pounds they are doing the same damage to the road. The older one gets 5-6 mpg and the newer one gets 7-8 mpg. Why should they not pay the same amount in fuel tax?

It wouldn't be hard to change it. Still pay taxes at the pump as usual and record distance in each state. Each state could come up with an amount per mile similar to how Oregon does it. Calculate the tax paid in and tax due based upon miles driven and registered gross weight and come up with a number. I don't see how this wouldn't be a fair way to still collect taxes which are supposed to go to fix road damage caused by heavy vehicles.

 

Believe me, the current system is a whole lot simpler than it used to be. A door full of stickers and different plates lining the bottom of your bumper. Having to make sure you bought enough fuel in every state to cover yourself. And if you were due a rebate, Ohio didn't think it was worth paying it if it was under $200.

 

I think from government's view it's far easier to administrate and much more difficult for people to cheat their taxes by taxing the fuel compared to taxing weights and axle counts. I could also see it being a bookkeeping nightmare for many companies who don't always run the same axle counts, have some trucks registered for 80k and some for less, etc.

In a perfect world taxing weights and axle counts would be the fairest way to assess road taxes though. The road doesn't care whether your truck gets 5 mpg or 8, it cares how much weight you roll over it and how many axles you do it on.