What is IFTA?

IFTA... International Fuel Tax Association Thats where they collect tax on fuel to maintain roads and bridges, then spend on everything but.
Google IFTA

KY... The stuff you use to "enhance the experience" when your old lady gets, well old.

 

KY is the tax that the state of kentucky charges. I think it is per truck or per mile (I can't remember) and it has to be paid yearly. You can always tell when the due date has just passed cause the scales will check almost every trucks info.

 

International Fuel Tax Agreement: it is an agreement between the states for collecting fuel taxes.

 

Typically, if you go outside your state you will have to sign up for IFTA and get a sticker for the truck. At the end of each quarter we tally up all the miles driven, fuel put in the truck(s), then figure out the MPG and fill in some forms with that info. Depending on those miles, I will pay (to my state) for all the states listed that we ran in a %, and the state will then distribute the funds to the other states.

 

Yeah, it means International Fuel Tax Agreement - it's a new system that was designed so that you don't have to buy a certain number of gallons of fuel in each state like the old truckers used to. In other words, you buy 200 gallons of fuel in one state, and your company reports this, and the number of miles you drove in that state, and every subsequent state thereafter, and divy up the fuel tax money based on the miles per gallon that you got (or sometimes what the fleet gets) between the states that you drove through. Since you asked, I will give you a real life example:

Let's assume that you buy 100 gallons of fuel in Florida, at the TA # mm329 and that you're headed north on I-95. Let's say that the fuel in Florida is $2.25 just for fun. The fuel isn't $2.25 - the fuel is $1.6953, the federal tax is $.244 and the florida fuel tax is $.3107 per gallon.

So, you paid Florida $31.07 on the spot for fuel tax, the federal government $24.40, and you actually spent $169.53 on the fuel itself. Now, you're not going to get the federal tax money back, but guess what? You're driving through Georgia and South Carolina who have lesser fuel taxes than Florida: Let's break it down: Let's say you're getting 6 mpg, just for fun: remember you paid Florida $31.07 - you'll either get a refund or owe money - let's see

Florida (rate is $.3107 per gallon)- miles 51 - gallons used 8.5 - fuel tax owed $2.64
Georgia (rate is $.167 per gallon)- miles 111 - gallons used 18.5 - fuel tax owed $3.08
South Carolina (rate is $.16 per gallon) - miles 199 - gallons used 33.17 - fuel tax owed $5.31
North Carolina (rate is $.299 per gallon) - miles 187 - gallons used 31.16 - fuel tax owed $9.31
Virginia (rate is $.175 per gallon) - miles 52 - gallons used 8.66 - fuel tax owed $1.52

The total is 600 miles for 100 gallons (6 mpg) and you're total tax due to each of those states is: $21.86 - but you paid $31.07 # the pump - therefore you are due a refund of $9.21 for that tank of fuel: doesn't seem like much, but there is money to be made(or lost) at this little game and let me tell you why:

Let's say that you were listening to the CB and all the truckers told you that fuel was $2.18 # the Pilot in Brunswick, GA. Dang - that's $.07 cheaper per gallon - we should fuel there right? WRONG !!!

Remember the fuel tax in Georgia is only $.167, so the actual price of fuel in Georgia is $1.769 after you subtract state and federal tax. Remember the actual price of the fuel in Florida was $1.6953 - therefore the actual price of the fuel was $.0737 cheaper in Florida, yet the line to fuel in Georgia can extend well out into the road, simply b/c drivers don't understand fuel taxes. Remeber you got a refund buying the fuel in Florida - but if you would have bought the fuel in Georgia you would have paid $7.37 more for the fuel and you would have only paid $16.70 in fuel tax. Remember for the 600 miles you ran you owed $21.86, so not only did you pay more for the fuel, you owe money on your fuel taxes - $5.16 to be specific.

It doesn't seem like a whole lot of money, but when you run 150,000 miles or more in a year, that is 25,000 gallons # 6 mpg, and what looked like a $12.53 mistake on 100 gallons would end up being a $3132.50 mistake at the end of the year. Now, I don't know about y'all, but the truck stops and the government already take too much of my money now, and I don't want to give them more.

The best thing to do is when you have some downtime, look online at the fuel prices, and get a chart with each state's fuel tax and figure out which truck stops are giving you the best price, and then the best price minues fuel tax. The example that I gave above is one of the best. Another is buying fuel in Gary, IN as opposed to Michigan or Illinois. NEVER BUY FUEL IN INDIANA - their fuel tax is only $.16, but they charge you more than this at the pump and you don't get credit for it. NEVER BUY FUEL IN KENTUCKY - they do the same thing, plus Kentucky is charging you $.02 for every mile that you drive in their state (that explains your other question). NEVER BUY FUEL IN OREGON - NEVER !!!!!!!!! Oregon doesn't have a fuel tax, but they will sell fuel at almost the same price as Washington or California. Oregon is at the top of the list on ripping off drivers, plus they're charging you a weight-distance tax for every mile you drive in OR. NM is also charging you a weight-distance tax for all your miles. New York is charging you $.04 for every mile that you don't drive on the toll roads.

A lot of this doesn't mean a hill of beans to a company driver, but if you're an owner operator, this knowledge is as crucial as anything on the road. That's not to say that you're always going to win at this game, because right now, I have a fuel problem and I can't fuel strategically. And when the wind is blowing at you in Wyoming # 50 mph, then you're not going to get 6 mpg no matter what. And when you go up north you need to keep the tanks over 1/2 full if it is going to be -20. In these cases you're just doing your best. But, if it's a sunny day in Florida and you've got the choice to fuel there or in Georgia, why not save a few dollars.

Hope that answers the question.

 

EVIL CAPITALIST, thanks much! that is great information. information i will run to the bank with. easy to tell you're a businessman and a real pro. makes it harder to keep a good man down.

 

EC...... Where as that's all tfue when it comes to trying to hedge your bet on where you buy fuel you really are not saving or costing yourself anything. Its just a matter of when you pay it. At the pump or at year end.

Of. Course the other states you mention are the exceptions

 

I am not saying that you're going to break the bank by strategically buying your fuel, but every penny helps. There is a lot to consider - weather, the personnel at the truck stops, terrain, parking, etc., etc. Like I said, I can't even use my own advice right now b/c I have a fuel issue !!!
It is like buying bread and peanut butter and jelly from wal-mart vs. eating at the truck stop every meal. If you eat at the truck stop EVERY MEAL, you're going broke. However, if you eat peanut butter and jelly sandwiches from Wal-mart EVERY MEAL, you're going to get sick of it quick. However, if you can skip one or two meals a day, by eating snacks from Wal-mart, then you're saving money. You can use that money to splurge at the Big Texan in Amarillo when passing thru !!!!