ifta problem with company

Here is the thing most people don't understand about fuel taxes, I will try to break it down.

You have to first know what the tax rates are for the states you run in. I'm going to use Illinois and Indiana. Cash price at pump in Illinois where I get fuel is $2.22. Let's say Indiana is the same. Illinois has fuel tax in that price, Indiana does not. So Illinois tax rate is $.365 per gallon. Take $2.22-.365= $1.855 base price. Indiana $2.22-.16= $2.06 base price then add $.11 surcharge back on and that's $2.17. Illinois is cheaper base price. I understand on income tax not giving government free money for a year, but on quarterly IFTA, I don't mind paying the price up front, and them owing me, easier to keep my books. I know guys that have owed several hundred dollars per quarter and didn't have it budgeted.

You have to know which states will carry other states. MO for example is $.18. TN IS $.17. Illinois will carry multiple states. Always buy IL, PA, WI, MI, IA, NY fuel if traveling in those areas. Even traveling thru, IN, KY I never buy fuel in those states, EVER. It doesn't pay. I travelled thru 12 states last quarter and only bought fuel in 6 of them and still getting $100 back. Education is key here on understanding how IFTA works. Look at base price fuel, not whether you will owe or get refund. I will continue to get refunds before I will owe

 

I understand exactly how it works. What I'm saying is if the base price of fuel is the same in 2 jurisdictions I will pay the lower tax rate and pay ifta later.

 

If base price is the same, I would rather have the higher tax rate to help carry other states. I understand you get it. Just difference in opinion. You would rather pay, I would rather have the little bonus check 4 times per year. Most however do not understand it. I have had this conversation with multiple owner ops that had no clue how it works.

 

Some companies cover the fuel tax so the owner operator is further ahead to just go by lowest cash price. Just depends how it's done. If Oregon is 2.00 and cali is 2.40 and cali is .40 per gallon I will get it in oregon. Sometimes I have to pay a few hundred. No biggie. I prepay my card for fuel; prefer to draw it down as slowly as reasonably possible..

 

Op should just run his own ifta account....

Doesn't a carrier have to allow you to run your own...?

 

I don't think they legally have to allow you to run your own account. One of those things this is their contract and that's it kinda deals. I still say he fuel at duty free. If a discount is only .07 he would be further ahead anyway. Michigan at the Detroiter cash is 2.75 minus u is 2.68 minus .28 mi fuel tax 2.40. Amex at the bridge is 2.25 .... .15 lower ...
I buy a lot of reefer fuel from there.

 

Ya, doesn't sound like he's got a handle on the true price of the carriers fuel vs duty free....

Who carries cash..? Not me ! I might have $80-$100 but that's usually about it.

 

Sometimes it's easier to use cash as a canuck because our debit cards aren't accepted here and unless we have a us dollar credit card we pay a rape rate on the exchange

Edit
We do have fuel cards that do both countries and don't rape on the exchange and give discounts...just a matter of getting it setup