IFTA question

Discussion in 'Ask An Owner Operator' started by LondRanger, Jul 21, 2019.

  1. LondRanger

    LondRanger Heavy Load Member

    712
    1,073
    Jun 3, 2018
    0
    is it better to get fuel in the state your in or buy the it on the cheap outside of California.

    Man these commies are killing me with their 0.7 rate and screwing up my truck with their pot holes.
     
  2. DTP

    DTP Road Train Member

    1,282
    2,637
    Dec 9, 2014
    0
    The way IFTA is set up, states get their taxes for fuel burned in that state no matter where it was purchased. So given a set route you’re running, it actually doesn’t matter where you buy the fuel.
     
    PE_Trans, LondRanger and Rideandrepair Thank this.
  3. Rideandrepair

    Rideandrepair Road Train Member

    3,988
    4,056
    Aug 8, 2015
    0
    Take the tax off of pump price, in any state, compare net prices.But cheapest net priced fuel. Each State gets their money either way, upfront or quarterly.
     
  4. LondRanger

    LondRanger Heavy Load Member

    712
    1,073
    Jun 3, 2018
    0
    Then paying 3.70 is cheaper the. Paying 3.99 or more.

    Thanks guys. I always wondered why people say I buy fuel in every state I’m in. Now I know why.
     
    Rideandrepair Thanks this.
  5. Rideandrepair

    Rideandrepair Road Train Member

    3,988
    4,056
    Aug 8, 2015
    0
    No need to buy in every state.Thats a thing of the past, since IFTA. Some States wouldn’t give refunds, Ga. for instance. Nowadays, your Base State you file with, does all the work for you. 3.70 vs 3.99. The price for the actual fuel would be the same if the 3.99 State had a tax .29c higher per gallon on the pump, than the 3.70 a gallon state. The only difference is wether you pay taxes now at the pump or later, quarterly. If you only ran those 2 states, equal miles in each, one way 3.70, you owe money, the other way 3.99, you get a refund, Each States going to charge their rate, based on your mpg and the miles ran, wether or not you actually bought fuel in each State. If you bought it all in one State, they will get what their owed, the rest will go to pay the other States you ran.If you buy it all in the highest tax rate State, You would get a refund, as the other States have a lower tax rate due. Buy in the lowest tax rate State, you would surely owe, since others are higher, Best simple way is to minus the tax from pump price in each State, compare price, without the tax. Your going to pay same amount in taxes, either upfront at the pump, or quarterly, after all taxes owed and credits already paid are figured on Ifta quarterly filing.
     
    Dino soar, dynamite and LondRanger Thank this.
  6. LondRanger

    LondRanger Heavy Load Member

    712
    1,073
    Jun 3, 2018
    0
    Thanks for explaining it. Now that I have done my own ifta a few times I’m beginning to understand better and better.
     
    Rideandrepair Thanks this.
  7. 062

    062 Road Train Member

    2,064
    3,295
    Oct 20, 2013
    0
    One other thing I do is fuel to less than .5 of a gallon since it’s rounded to the nearest gallon.
    Example 100.497 instead of 100.505. It probably doesn’t make that big of a difference, but it makes me feel better.
     
    Rideandrepair Thanks this.
  8. Opendeckin

    Opendeckin Light Load Member

    151
    316
    May 20, 2018
    0
    You got that backwards. The more fuel you show purchasing in a state on your IFTA report the less you owe that state since you would have already payed taxes on the fuel you purchased.
     
  9. 062

    062 Road Train Member

    2,064
    3,295
    Oct 20, 2013
    0
    Maybe so, but the way I look at it is that .4xx of a gallon is tax free. Verses the .5xx being taxed as a whole gallon.
     
    Rideandrepair Thanks this.
  10. Pedigreed Bulldog

    Pedigreed Bulldog Road Train Member

    7,744
    14,258
    May 7, 2011
    0
    Rounding down also would help your mpg's where rounding up hurts it...
     
    Rideandrepair and 062 Thank this.
  • Draft saved Draft deleted