I'll give you an example. NJ was 17.5 cents a gal tax and we have on-site fueling and do 90% of our work in NJ BUT a lot in NYC and the Island plus some PA and both states were over 30 cents a gal.
We always had a credit in NJ and always had to pay to PA and NY for not buying any fuel there so we accruing 'credits' at $0.175 while running up debits at $0.30+ so we paid...
Then NJ almost doubled the fuel tax. so my 'credits' are now worth a lot more so we wipe out what we didn't buy in NY and PA -or- pay very little...past three quarters we owed like $25.00 one quarter and Zip the other two...
Not buying some of the high price fuel puts you in the same situation as we were when NJ was so cheap...You don't need to break the bank but if you are paying $300.00 a quarter [$1200 a year] you will cut it down by investing in a few hundred dollars worth of the higher priced state's fuel...
Understanding IFTA
Discussion in 'Ask An Owner Operator' started by TruckerPete1990, Jan 8, 2020.
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The main thing that matters is to pay the lowest "rack price", the actual cost of diesel without taxes. What you have to pay in IFTA because you didn't buy enough in this or that state will be made up by the money you saved by paying the least for the fuel itself.
magoo68, D.Tibbitt, dunchues and 1 other person Thank this. -
Thanks I run a lot of IL but never buy fuel in IL price is too high lol
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It makes zero difference what state you buy your fuel in, because you will pay any difference in tax when you fill out your IFTA.Bean Jr. Thanks this. -
I still do mine longhand. Sometimes 3 or 4 times before I get it right. Just exercise for my brain.
The reason to check fuel without ifta included at your pump price. This is the lowest price and you're comparing apples to apples on the fuel price.
You're correct about the tax. The amount of tax you pay is relevant to the miles ran in each state.PE_T Thanks this. -
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magoo68, feldsforever and Bean Jr. Thank this. -
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I ran the numbers for the 1% fuel economy reduction for B20, and it translates to about an additional cost of $0.03 per gallon. Nowadays, though, many truck stops have some biodiesel blend. Just recently, almost all TA/Petro locations have a biodiesel blend.Bean Jr. Thanks this. -
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