paying too much for IFTA?

Discussion in 'Ask An Owner Operator' started by Rich_Trucking, Jul 28, 2014.

  1. Rich_Trucking

    Rich_Trucking Light Load Member

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    Dec 11, 2012
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    What do you think?
    Two Trucks.
    90700 miles
    13630 Gallons
    Running All 48 states
    mostly east to west coast loads
    $826 for IFTA
    I've never paid this much, but at the same time we never ran that many miles either.
    What do you guys think?
    Sounds right or was there a mistake made ( gas receipt not received, miscalculation etc.)

    THANKS
     
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  3. zinita17601

    zinita17601 Road Train Member

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    lancaster pa
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    miles alone dont determine how much you pay for ifta,you have to consider where do you fuel.
     
  4. fortycalglock

    fortycalglock Road Train Member

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    Tourist Town, FL
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    If you bought the cheapest fuel possible pretax and it happened to be in low tax states, don't worry about it. If you don't know what I'm talking about or just fuel where the pump price is the cheapest, then it's time for some education
     
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  5. ipogsd

    ipogsd Heavy Load Member

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    Care to elaborate?
     
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  6. davenjeip

    davenjeip Medium Load Member

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    Port Charlotte, Fl
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    Different states have different tax rates. The higher the rate in that state, the more you pay per mile driven there and also the more you pay per gallon at the pump. Lower rate means less per mile and a lower rate at the pump.

    You're going to drive where you're going to drive, so you're stuck with whatever the final bill is going to be for that period. But, what you do have an impact on is which states you fuel in. This is where a lot of people get into trouble, since they look for the lowest pump price without taking the tax into consideration, when the real number you look at should be pump price minus whatever that state tax is.

    So, if you fuel in higher tax states, driving through those lower tax states gains you a credit at the end of the quarter. But, if you tend to fuel in the lower tax states, you didn't pay enough into the system to cover your driving through the higher tax states and end up owing money at the end of the quarter.


    Does that make sense? Not sure I did the best job explaining it.
     
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  7. fortycalglock

    fortycalglock Road Train Member

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    Every state has different levels of fuel tax. If you consistently buy in lower tax states and run through higher tax states, you'll owe money at the end of the quarter. If you do the opposite, they'll owe you money. The trick is to buy the cheapest fuel possible as the total tax amount will be the same at the end of the quarter no matter where you bought your fuel. So if IL's pre tax price is $3.00 and their fuel tax is .39=3.39, and MO is 3.15 and fuel tax is .17=3.32, IL's fuel is cheaper.
     
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  8. turnanburn

    turnanburn Medium Load Member

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    Jan 25, 2011
    central Vermont
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    It's a + and minus game. You pay the going rate per gallon of each state's fuel tax for every mile you drive in that state. It doesn't matter to the tax people where you buy your fuel. I live on the border of VT and NH. NH has a 16 cents per gal tax(going up next 1/4) and VT has a 32cent tax(goes up almost every 1/4). If I buy fuel in VT and drive in NH i get an IFTA credit. If I buy fuel in NH and drive in VT i owe the NH IFTA. But that means the fuel at the truck stop just over the border into NH that is 10 cent cheaper isn't cheaper .
     
    Last edited: Jul 28, 2014
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  9. turnanburn

    turnanburn Medium Load Member

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    central Vermont
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    That's an average of 6.65 mpg, and you're being asked to pay what amounts to a .06 cent per gallon adjustment. Not bad I think. They're way more than 6 cents different around here with NY being 40 something and NH down in the teens.
     
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  10. Sly Fox

    Sly Fox Road Train Member

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    If you owe it on your return, it means you didn't pay it at the pump.

    At the end of the quarter, you're going to pay the same amount no matter what.
     
  11. double yellow

    double yellow Road Train Member

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    You got an interest-free loan, congrats
     
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