Budget for IFTA

you don't really "budget" for it, do you budget for fuel?

You can use one method of putting aside money based on the highest taxed fuel, then base it on the gallons you use, the surplus at the end of the quarter goes back into your general fund.

For example if you run Michigan and Indiana, take Michigan's tax and base everything on that, then you won't ever be short.

Somewhere in my collection of links is a very very good explanation on what to do and how to actually buy fuel to always get money back into your pocket, if I can find it, I will post the link.

 

I may be wrong because I am surely not an expert on this ifta, but I thought I heard too that states like IN and VA do not return any overage of money spent in their state on fuel.

 

If what it sounds like you are saying is what you are saying, this is not correct. When you file a return with the state that issued your permit, you calculate which states you owe money, and which owe you money. If the amount owed is greater, you will write a check to your state. If the amount owed to you is greater, then your state will send you a refund. It does not matter which state owes you, your state will cut the check.

Possibly what you have heard is that those 2 states have a surcharge. Essentially they collect half of the tax at the pump and half in the return. If you were to have bought enough fuel in Indiana that you don't owe and you are owed nothing, you would still have to pay the surcharge.

 

Ok that is good news, I had the wrong info. Husband gets fuel in Gary when in that area, we try to balance out what is bought in other states when going back and forth. So far he hasn't owed, the best I can remember, and do usually get some back. Thanks for explaining it better.

 

I run ON, PA, NY. Ontario is usually the cheapest fuel of those three states but highest taxed. I can't speak to IL, OH fuel prices but we fill 100% in Ontario and always get a refund on fuel tax. And don't forget 13% of that Ontario pump price is HST that you get to claim as a ITC.

But if you run NY you will have to budget for the HUT on every mile you drive on non toll roads......$.05/mile IIRC. Make sure you keep track of your NY toll road miles because you don't pay tax on them.

One more thing. Go to the IFTA website and print a of copy of the current fuel tax rates for each state so you can compute apples to apples
https://www.iftach.org/taxmatrix3/choose_tableqnew.php

 

How much you paying for it in ontario now? My price is about 1.00 all taxes in. The carbon tax has pushed it higher and it's better for me to fuel in pa now. By about .15usd per us gallon.
After hst rebate and ifta taken out and 1.34 cdn=1 usd it is about 2.09Usd pre ifta to fill in ontario for me. In pa I found it for 2.68 or about 1.94usd pre ifta.

 

You guys are making everything complicated, here is an example with this app.
Let's say I have to go from MI to PA, I can fuel in MI, OH, or PA. Checking Nastc prices I see that my pump price will be
$2.33 in MI, $2.18 in OH, or $2.73 in PA. Let's put these values in the app


So the best place to fuel would be OH!

 

According to what I get from the IFTA table;
ON fuel tax is $.143/L now x 3.8L/US gal = $.54 CDN/1.34 = $.40/US per US gal
PA fuel tax = $.747 US per US gal (Yikes that's alot of tax)

We have yard fuel which is cheaper but to compare apples to apples there is a FJ 45 minutes away that sells for $1.05 CDN/L x .87 HST = .91 CDN/L - .14/L fuel tax = $.77/L x 3.8 = $2.93 CDN/US gal = $2.18 US per US gal for the fuel only?

If PA fuel tax is .747, then $2.18 + .747 = $2.93/gal so anything over $2.93 in PA is more expensive than $1.05/L in Ontario. At least according to my math.

What pump price are you paying in PA @gokiddogo ?

 

Pa pump price 2.68 after my discount (usd)
Ontario pump price 1.00 cdn/L
My math:
((1.00÷1.13)-.143))*3.785/1.34=2.09usd/us gallon

So pa would be 2.68-.74=1.94usd/us gallon

 

Yep. Cheaper in PA for you then.