How to do fuel taxes?

The best way to deal with ifta is as follows:
regardless of "where" you buy your fuel, you "will" pay fuel taxes based on your miles traveled in a state. In other words, you don't need to worry about trying to save money on the fuel taxes. You won't!
Forget about which states have higher pump prices! More often than not, the so called "cheap" states are the least cost effective!
Learn which states apply taxes at the pump, and which ones do not. Those that do, likely, have a lower "actual fuel cost". Therefore, you need to learn which states have the lowest "pre-tax" fuel price. Here is an example:
Indiana- $2.75 per gallon # pump No taxes applied
Illinois- $2.95 per gallon # pump $0.37 tax applied # pump = $2.58 per gallon actual

I don't have the actual numbers in front of me, so do your own leg work on this. And, the figures change everytime a state raises/lowers it's fuel tax. The example above shows a savings of $0.17 PER GALLON on your fuel. Based on 100,000 miles per year, at 6 miles per gallon, you've just saved roughly $2,800 on fuel for the year.
Again, stop worrying about "the taxes" You're gonna pay what you owe each state. Period. place the emphasis on the "actual cost of fuel". It may sting a little in the short term. But, over the long term, you will be much further ahead.
Hope this was helpfull. And, as soon as I find, or create a chart outlining the aforementioned state taxing schedules, I will post it.

 

Your fuel taxes are listed in the front of your Motor Carriers atlas.

 

Hi, i work in trucking company. I suppose to pay Oregon fuel tax soon. i don't know how can i calculate all the mile for Oregon state.its really important for me to do all this in few days. is there any ways can file this tax accurately and quickly. I am not getting how can i do this. my drivers go all the way from canada to USA.how to find how much they actual drove in each state.Thanks, Please reply me soon....

 

A. You require your drivers to keep track of odometer readings or miles driven in each state and province and turn this in to you as a periodic report.

B. If you don't have them do that then you will have to recreate their routes for the whole quarter and produce a state mileage report on a program like CoPilot Truck or PC Miler. Just remember by law you need to report all miles driven and not just on a particular route.

C. If your drivers use a GPS with state mileage logging on it then you get the logs from that GPS.

D. If your trucks have a tracking module installed then you log into your tracking account and produce a state mileage report for that quarter from there.

 

You have these drivers who are always writing odometer readings down
and some have little books they keep it in.
Then you can try and deduct toll road use, I have heard every type of way to do ifta there is, I think.
NOW you have IFTA made simple!!
Most states have online ifta filing it takes me about two hours or less starting from nothing.
First take logbooks add up total miles for qauter.
then use pc miler and punch in all zip codes or cities listed by your load rates and print a state details report.
Use the highest milage logbook or rate sheets milage(pc miler)
Normally they are within 1-4% of each other.
You have a breakdown of state milages and then you just use your
state by state total fuel gallons purchases.
I try and buy fuel in higher tax rate states the credit carries over and I buy my IFTA stickers with the credit on my account.
I have never paid anything in five years except one qauter and then I think I made a mistake.
This is same way they will audit you if you ever have one.
All the other papers are unneeded and serve no purpose.
This is all I would produce for any other type of audit concerning milage it can't be disputed cause it's same programs the goverenment uses..
Now there will be those that want to use a slide rule and all kinds of wasted time stuff. Not me I only do it cause the penalty (50.00) is more than the tax can be if you run one truck.

 

The current Illinois diesel tax in is $0.41 per gallon paid at the pump. The current Indiana tax is $0.16 per gallon paid at the pump. In addition, Indiana has an $0.11 per gallon surcharge which is paid on the quarterly return. That means if you purchase the correct percentage of gallons in Indiana, you will still owe $ on the quarterly return. If you purchase all in Indiana, you will owe big $ on the quarterly return due to the $0.11 per gallon surcharge on all Indiana gallons and the $.25 ($0.41-$0.16) difference in the two tax state tax rates paid at the pump for Illinois gallons. Either way you will pay the same tax but one spreads it out over the quarter.

Of course, this does not figure in the base price of fuel in each of the states or local sales taxes.

 

Bagman for the SEIU ...

 

This crap makes my head spin.

 

Not according to Ohio's chart you find online. You only pay the surcharge on gallons burnt in Indiana, regardless of what state they were purchased in.

If you're getting 6mpg, and you drive 60 miles in Indiana and never purchase a drop of diesel in the state, you still have to pay 60/6*.11=1.10 for the surcharge.

That's straight from Ohio's guide: http://tax.ohio.gov/divisions/excise/international_fuel_tax_agreement-ifta/index.stm

Click on forms and then click on the 4th Quarter link. It's a spreadsheet that allows you to enter all your totals and it does all the calculations and fact checking for you. Print it out, carry over the numbers to the IFTA form, and then mail both into the state.

For me, Indiana is my best deal for diesel driving the northeast. Always fill my tanks before leaving the state as the closest I can get to price is Ohio about .20 more in price (pre-discount), which is still 0.09 less than the IFTA price of Ohio. Pennsylvania, New York, and Connecticut are even worse prices.

I'll gladly cut a check to IFTA than paying $4.00 IFTA price compared to Indiana's $3.60 IFTA price.

 

I'm not sure what you believe to be incorrect. In Indiana fuel is taxed at $0.16 at the pump. On an IFTA return, the fuel consumed (burnt) in Indiana is charged $0.27 on the return ($0.16 fuel tax and $0.11 surcharge) with a credit of $0.16 for any Indiana gallons purchased. If you do not purchase an gallons in Indiana as in your example: If you're getting 6mpg, and you drive 60 miles in Indiana and never purchase a drop of diesel in the state, you still have to pay 60/6*.11=1.10 for the surcharge PLUS 60/6*.16= $1.60 for the fuel taxes. $1.60 + $1.10 = $2.70 tax due. Any fuel over-purchased in another state will be credited for that jurisdiction.


As I stated in my post if you purchase fuel all in Indiana you will owe surcharge tax on the gallons consumed in Indiana and tax difference on the gallons consumed in Illinois or Ohio since their tax rate is higher than Indiana. In the end you will pay the same fuel tax. Here are three examples, in case this is not clear:

• A semi travels 24,000 miles with 4,000 gallons purchased giving a 6.00 MPG.
• Indiana miles traveld are 12,000 resulting in 2,000 gallons consumed.
• Illinois miles traveled are 6,000 resulting in 1,000 gallons consumed.
• Ohio miles traveled are 6,000 resulting in 1,000 gallons consumed.

Example A: All gallons purchased in Indiana at a $0.16 tax rate.

Indiana tax due = 2,000 gallons *$0.16 = $320.00
Indiana surcharge due = 2,000 gallons * $0.11= $220.00
Indiana credit = 4,000 gallons * $0.16 = ($640.00)
Indiana net credit = ($100.00)

Illinois tax due = 1,000 gallons * $0.378 = $378.00 (4th Qtr rate)
Ohio tax due = 1,000 gallons * $0.28 = $280.00

Total Due on Return: $558.00
Tax Paid on Purchases and Return: $ 1198.00 ($640 IN on-road + $558 Return)
​

Example B: Gallons purchased in correct percentages, 2,000 gallons in Indiana, 1,000 gallons in Illinois and 1,000 gallons in Ohio.

Indiana tax due = 2,000 gallons *$0.16 = $320.00
Indiana surcharge due = 2,000 gallons * $0.11= $220.00
Indiana credit = 2,000 gallons * $0.16 = ($320.00)
Indiana toal due = $220.00

Illinois tax due = 1,000 gallons * $0.378 = $378.00 (4th Qtr rate)
Illinois credit = 1,000 * $0.378 = $378.00
Net Illinois due = $0.00

Ohio tax due = 1,000 gallons * $0.28 = $280.00
Ohio credit = 1,000 gallons * $0.28 = $280.00
Net Ohio due = $0.00

Total Due on Return: $220.00
Tax Paid on Purchases and Return: $ 1198.00 ($320.00 IN on-road + $320 IL on-road + $280 OH on-road + $220 Return)
​

Example C: All gallons purchased in Illinois.

Indiana tax due = 2,000 gallons *$0.16 = $320.00
​

Indiana surcharge due = 2,000 gallons * $0.11= $220.00
Indiana toal due = $540.00

Illinois tax due = 1,000 gallons * $0.378 = $378.00 (4th Qtr rate)
Illinois credit = 4,000 * $0.378 = ($1512.00)
Net Illinois credit = ($1,134.00)

Ohio tax due = 1,000 gallons * $0.28 = $280.00

Total Refund on Return: ($314.00)
Tax Paid on Purchases and Return: $ 1198.00 (1512 IL on-road - $314 Return Refund)
​

As stated in the orginial post: Of course, this does not figure in the base price of fuel in each of the states or local sales taxes.

*The difference in the Illinois rate I quoted in the original post of $0.41 and the $0.378 listed on Ohio form that you linked to is the change in the rate from one quarter to the next. I used your selected quarter for the examples and added Ohio for your benefit.