Penske says I owe $4,000 in IFTA fees?

If you’re paying tax on the fuel when you buy it, why do you owe more on it later?

 

The way ifta works is so each state gets it's amount due. So in my previous example if someone operated in California and Oregon only but bought fuel only in Oregon California would have collected 0.00 in fuel tax. Would that be fair for California? No.
So if you did a trip of 100 miles in Cali and 100 in Oregon and your truck got 10 mpg you would owe each state 10 gallons worth of fuel tax. If you bought your 20 gallons in Oregon where the tax rate is 0.00 you would owe California 10 x 0.70 = 7.00. Now let's say you bought 20 gallons in California. You have credit of 20x.7=14.00 but your tax due is only 7.00 since California wants 10 gallons at .7 and since Oregon is 0.00 you would be entitled to a refund of 7.00.

Clear as mud? Lol...

 

And this is why the cheapest pump price is not necessarily the cheapest fuel.

 

Figured someone else can give lesson 2

Then we get into who has the bestest fuel card discounts or how to find that place that's a few pennies lower... yada yada yada

 

Tell them you need to see the breakdown of how many miles per state, much tax assessed for each state, and how much credit for tax paid at the pump in each state. You can't verify anything from just a bottom line number.

 

Hahaha. You don't have a clue what #### you can start with that question. For the answer and explanation. Do a Google if how does ifta work.

Basically you pay tax on fuel when you buy it. Every state has a different amount they charge.
Then you have to pay tax on how much fuel you burned in each state. Again different rates in every state. That is paid out of how much tax you paid when you bought the fuel. If you paid enough tax at the pump. Then you don't owe, but If you didn' pay enough tax you owe. I could go on for an hour. But just do a quick search, many videos explaining it online.

 

Ya I know....sarcasm and a bit of trolling on my part....

 

So remember boys and girls, don't buy fuel in Oregon or New Mexico

 

Tell us why....lol
Let's say Oregon is 2.30 and California is 3.10
(Don't remember nm rate off hand)

It's easy for me. When I go that way The same spots have the best prices for me. Ez trip Fresno. Little America flagstaff. Place at exit 369 in New Mexico. Cuba mo independent there. Gets me to Windsor husky. My network isn't giant and there's other places but these always are the best for me. Rather spend it in smaller stops as much as possible.