working with IFTA

I will say I did not read all the replies but...

This is the funniest thing I've read in a long while. You stated at the beginning that you traveled into CA but didn't purchase fuel there instead purchasing in the cheaper states without taking the IFTA tax rate into account to determine the actual cost of the fuel especially in OR where there is no IFTA credit. CA has a high tax rate of $0.45 when most other states are closer to $0.25-$.30. Oregon being $0.00. You then traveled into CA consuming fuel so for every gallon consumed you owed somewhere between most likely $.15-$.45 per gallon. You calculated your return so that you didn't owe much and think that the state miscalculated. The numbers you reported are entered into a system that does all the math. If you did over purchase in AZ then you should have already calculated that on the return. Each jurisdictional line gives consumed gallons - purchased gallons = under/over purchased gallons * tax rate = tax due/refund netted with all other jurisdictions.

IFTA is a fixed cost if you actually report the miles traveled and fuel purchased. You can pay it at that pump or on the return, either way you paid the same in fuel taxes. If you want to zero out the IFTA return and don't travel in a surcharge state, you should purchase your fuel in proportion to how you are traveling which is a lot of work and will not necessarily (rarely) give you the lowest operating cost. I agree with the gentlemen that state your time and wallet would be better served making sure that you are paying the least for fuel net of the IFTA charge (than trying to beat the system), getting the highest MPG possible and being mindful that it cost more to operate in certain states like CA.

 

Wouldn't it be great if all states participated in IFTA, 86'd the surcharges or any/all weight distance taxes & all settled on one unanimous tax rate all posted at the pump? Oh wait, government is involved, never mind.

 

It's a nice thought, in theory. But, it won't happen. Weight-Distance is based on the weight of the truck, you can't uniformly charge at the pump based on the weight of the vehicle. NY, NM, OR, and KY will not change. And NY gives you free miles if you're on the thruway. Another consideration.

As for a surcharge, again, it's because some diesel is surcharge free, and others there's a charge. Rather than separating commercial and non-commercial, etc, they just put it at the pump the same tax rate, and us commercial operators who file with IFTA get to pay VA, IN, etc a few extra cents per gallon.

The only thing I DO wish was if Oregon would just put their mileage rate on the IFTA form and we could pay for it that way instead of the current hassle.