Fuel tax ? s

Ok... this may sound stoopid...but hey

I just plugged a route from VA Beach to Albany NY, and did the "less ifta" option.

It shows $2.332 "less ifta" (retail @ $3.079; taxes of $0.747/gal) AT New Milford, PA

If I was to fuel up in Fredericksburg, VA the price is $2.337 "less ifta" (retail @ $2.539; taxes of $0.202/gal)

I see the Savings, BUT WHEN DO I REALIZE THEM????

 

A nickel a gallon cheaper in pa.

 

@driverdriver ...I just edited my post...so wanna clarify? now that I put retail vs. "less ifta" price?

--------------------------------------|RETAIL | "LESS IFTA" price |TAXES
I-81 @ Exit 219: Milford PA-------| 3.079 | 2.332 | 0.747
US17 Fredrericksburg, VA---------| 2.539 | 2.337 | 0.202
Difference --------------------------| 0.54 | -0.005

 

You have to pay road tax regardless.

When you buy at the less IFTA price which is you true cost of fuel your actually saving money.
Let's say for example you use 400 gallons a week and saved 5cts per gallon and you run 10 months a year.
That's $ 80 a month $800 a year savings on your fuel cost.

 

So you are saying that it's better to fuel up in PA (pump price: 3.079 X 100 gallons = $307.90) AS COMPARED to VA (pump price: 2.539 X 100 gallons = $253.90).

Spend $54 extra/per 100 gal fuel up, to save how much per month?

I dont mean to question you, but I'm not following the "less IFTA" monthly/annual savings rationale

 

Your true cost of fuel is the less ifta price.
Fuel tax has to be paid regardless , weather you pay it at the pump or cut a check at the end of the quarter or you might even get a rebate.
So let's say you only needed to put on fifty gallons in PA to cover your road tax for the miles you drove in PA.
But you put on 100 , the extra taxes on that additional 50gls will get shared with states that you didn't put on enough fuel.

Maybe this example will help you understand,
The extra you spent at the pump in PA paid for your VA road tax and you did it by spending a nickel less per gallon.
Again this is just an example.

 

@nax
IFTA can be confusing call OOIDA on Monday and have them explain it to you.
Because there are also a couple of other aspects that you need to understand, like the couple states that don't share and the couple states that have an additional surcharge.
I say this because I'm not always good at explaining and I fear I may have confused you more.

 

I always try to buy buy some fuel in the high tax states, i.e. Pa, in.. if you don't pay now you will just have to cut em a check at end of quarter.. leaned the hard way one time with pa and about fell over when seen what I owed.. it adds up quick if u turn some miles in the high tax states.. consider it a payment plan if you just pony up and buy the high tax fuel.. seens easier to get robbed $10-$20 today than to cut a check for $2-$300 at end of quarter.

 

The easiest way to think of it is this. Each state charges you a different fuel tax for the miles you ACTUALLY run. Your tax bill is the total of each state's tax bill. That tax bill is calculated by your ACTUAL miles in that state, divided by your MPG, times their tax rate per gallon. Add all states' tax bills up for the quarter, and that is your ACTUAL IFTA tax bill.

Each state charges you a fuel tax at the pump. This is like the taxes taken out of your pay check. The amount "withheld at the pump" is the amount of taxes you pre-pay.

At the end of the quarter, your IFTA filing reconciles the two. If your actual tax bill is lower than the taxes you paid, you get a refund check. If your actual tax bill is higher than the taxes you paid, you write them a check. Just like the IRS and their withholding.

The savings happen the moment you buy the cheapest fuel - before tax. The tax is a separate transaction, and each state's tax rate is irrelevant to the price of fuel (only). It just happens to be on the same receipt.

We run a fair bit in Oregon, so we generally get an IFTA check, but then still owe Oregon.