Fuel prices/ IFTA

So what is the hidden tax?

 

I'd love to know, too, double yellow.

Because the spreadsheet by the Ohio Department of Taxation has nothing in the calculation for Indiana withholding tax money. 47 of the 48 contiguous states are members of IFTA (and DC). The lone exception is Oregon, which has you pay by the mile. Therefore, with the Oregon permit, you don't pay any tax at the pump.

As for Indiana, Kentucky, and Virginia, all three have 'surcharges' i.e., a tax applied on your return, not at the pump (therefore, non-commercial use diesel is essentially taxed less). All member states of IFTA share their tax revenue based on your IFTA reports, and can't overcharge or demand more than what's owed based on their current tax rate for the number of gallons burnt in that state.

Go here: http://www.tax.ohio.gov/excise/international_fuel_tax_agreement_ifta.aspx

Click on forms, and click on any of the 4 excel spreadsheets for IFTA quarterlies. Input the numbers however you want, there is no penalty, charge, fee, tax, etc for overbuying in Indiana. You pay the $0.11 for all gallons burnt in the state, whether purchased in the state, out of state, or a mix of both. And the $0.16 goes the same.




And skateboardman, you pay fuel tax every quarter. Even if your quarterly report shows nothing due. You're paying it at the pump. Which means you're not factoring in the cost of diesel too much because the total cost of diesel (minus tax) should be your overwhelming determination on whether to fuel or not.

For instance, my price for fuel today in Effingham, Illinois TA is $3.8468, however Midwest Petroleum in Cuba, MO is $3.5467. Now, not counting tax, Effingham is $3.4128. Cuba, MO is $3.3767. Now, following your infinite wisdom, we should fuel in Effingham to 'bank' money for IFTA so you don't write a check at the end of the quarter, while not buying actually cheaper diesel in Missouri. Even if it means you have to cut a check at the end of the quarter.

Your way means your diesel + tax is more than my way. Even if I have to pay some money at the end of the quarter. My total cost is less, for both combined.

 

300 a quarter isn't a little. no I wouldn't follow you around , I rarely do 2,000 miles a week, if you were as smart as you think, you would be getting a refund every quarter.

my current price for Indiana fuel averages 3.51 a long I-65 with tax , less tax mine would be 3.35. yep I get a discount. so I wouldn't follow you around

 

do you not think after doing this for 34 years now that I don't know I about fuel tax??? like I said I been filing fuel tax returns since the days of bingo cards and a fuel sticker from dang near every state..

my point was if you work it right you should get a refund and not pay in and still get a cheaper price overall.

I used to run as many as 8 trucks, I got fuel tax figured out.


I live in ga, but I am much better off buying fuel in florida. trust me I know the game.

 

I *think* he is saying he WANTS to pay at the end of the quarter, rather than give the IFTA man a free 3 month loan.

 

he could also buy fuel where the ifta man wouldn't get a loan and he wouldn't have to pay at end of quarter either.

by his words he trys to buy more fuel in ind., I would be he runs in Illinois some and that's where the 300 comes from.

 

but if you bought fuel in il and ran the majority of miles on that fuel in mo. you would far offset that 4 cents savings , and come out 9 cents a gallon better. you also have to consider where the majority of the miles will be ran on the fuel purchased.

like if a guy same thing with ga and fl

 

So is it better to buy the cheapest pre-tax fuel price getting a $300 refund but losing the $0.75 in interest on that money or buying the cheapest pump price fuel, but the pre-tax price is $0.10/gal higher costing a net difference of around $500 more for fuel per quarter?

Let`s don`t give the government a free loan by spending $500 more for fuel every quarter?????

 

Yep, $300 is a little. I buy around 1600 gal. Per month. So that's 0.0625 cents per gallon, see little. Pay on words, ha, ha.
I not sure were you missing the point! WE WIll BOTH PAY THE SAME AMOUNT at the end of the quarter. You choose to pay at the pump, I choose to pay at the end of quarter. Which also means I have better cash flow as well up to the end of quarter. The real bonus comes from making correct fuel purchasing decisions, which if you strip away the tax in each state makes it easy.

 

You obviously don't understand fuel taxes, then. You dont' 'save' anything by buying in Illinois and driving it in Missouri unless the un-taxed price of the diesel is cheaper.


Here's a little formula for you, you can do the math:

Let's say you get 6mpg. You drive 24 miles in Missouri and 12 miles in Illinois. No matter where you buy your diesel, you owe 4 gallons of tax to Missouri and 2 gallons of tax to Illinois. You can buy it in Missouri, you can buy it in Illinois, or you can buy it in some other state. At the end of the day you still get: (Gallons Burnt in Missouri * Missouri State Diesel Tax = Amount Due) + (Gallons Burnt in Illinois * Illinois State Diesel Tax = Amount Due).

No matter where you buy your diesel, your fuel tax bill can only be improved or harmed by your MPG. Illinois will want theirs and Missouri will want theirs.

You're thinking that since you owe $0 at the end of the month that you didn't pay any fuel taxes. That's foolish. You paid fuel taxes all quarter. Add up your IFTA totals. Take a look at your IFTA report. Take Column D3 (price) and multiply it by D6 (Taxable Gallons). Then add the three surcharges (D3 * D8 for IN, KY, and VA).

That's how much you paid in state fuel taxes in that quarter. No matter where you buy your diesel. That cost doesn't change.