Fuel Tax?

fuel taxes vary from state to state. you have to pay for every mile you run in every state. this is accomplished through IFTA (International Fuel Tax Agreement) you or your carrier have to report the miles driven in all states quarterly, and how much fuel you bought in said states, if you didnt buy enough fuel in one state, you have to pay the remaining tax, however in most states if you buy to much fuel, you get a credit to your IFTA account to put toward the state thats lacking.

 

In most states it is included in the price of fuel, Indiana being an exception that comes to mind. State tax $.27, tax at pump $.16. Oregon has no fuel tax but a ton mile tax that works out to about $.90/gallon. Some states have a combination of fuel tax plus milegae tax plus ad valarem tax.

All expences incurred in running your business can be claimed.

 

was going to get into all that, but... ya know...


Georgio, what are you going to be doing with the truck? If you are leasing on to a big carrier, they usually record and report this for you, than take it out of settlement every three months.
smaller carriers usually report for you, but you have to submit your mileage, and fuel bought to them after every trip, they to then take it out of settlement every 3 months.

 

Every state has a set amount you will pay on fuel tax per mile you drive in their state.

Example:
Lets say you drive in Texas & Oklahoma and you buy your fuel in Oklahoma.

Your also going to need to know how many miles you get per gallon. Lets say your getting 5 miles per gallon to keep this example simple.

Fuel bought in Oklahoma 50 gallons
5 miles per gallon


Texas Miles are 100
Oklahoma Miles are 30

Texas - 100 miles driven divided by 5 miles per gallon = 20 gallon fuel tax is due to Texas because you didn't buy any fuel in Texas

Oklahoma - 30 miles driven divided by 5 miles per gallon = 6 gallon fuel tax
However, you bought 50 gallons in Oklahoma therefore you will have a 44 gallon credit in oklahoma.

The amount you pay per gallon is different in every state, they are all listed on your IFTA Quarterly Tax Form.

You only pay this fuel tax every quarter, It may sound complicated but once you start filing out your IFTA you will get the hang of it.

 

ok so with all thats said how exactly do you keep up with how many miles were driven in each state? DO you keep a spreadsheet, is there a program for it (grabbing here) does your company keeo track of it for you in a report? Do you go by actual miles on the dash as in state line to state line or do you just use goole maps or map quest? Also does it matter the effect of how you are paid hhg or practical miles or percentage or does that not have any effect?

 

WI has an actual mileage log you can download off their website to track mileage/state operating in. Not sure about TN.

 

The easy way to keep track of your mileage is a spreadsheet. Just list the states you drive in and go off your odometer reading off your dash.
Take the reading when you enter the state and the reading again when you exit, this will give you total miles driven in that state. It's best to do this daily so you can keep up with it.

Example

Date -----Oklahoma (Miles)---- Texas (Miles)----- Kansas (Miles)
9-13-09 ---------------------------------------------72
9-14-09 -----$202 ---------------45 ----------------120

I hope this helps.