International Fuel Tax Agreement

 

The states realized that they were making things super difficult for trucking companies to drive through different states. There was a lot of time and money wasted while truckers went out of their way to get a fuel permit for every state they passed through. So most of the states said "we can do better" and created a mutual agreement between themselves. More and more states joined in and when some provinces in Canada decided they wanted to be a part too, it officially became an international fuel tax agreement.

 

Well every state having their own fuel tax makes things really difficult. It allowed trucks to only fill up their tanks in states with low fuel taxes. Then they drive through all the high fuel tax states without spending any money. That didn’t work well because all the states need their fair share of tax money to keep their roads looking good. The agreement makes it so that every state gets their correct share of fuel taxes based on how much you drove through their state. 

 

Alright let's say you fill up your truck in Arizona where the fuel tax is low. Then you drive straight through California where the fuel tax is high. Instead of worrying about that when you're going about your daily driving and business, everything is calculated up in a quarterly report. If you filled up in cheaper states and drove through more expensive ones, you'll end up owing more money when you file your quarterly report. If, however, you drove through cheaper states and filled up at the more expensive ones, you'll be refunded money.

 

Do you travel in more than two states or Canadian provinces? Does your vehicle weigh more than 26,000 pounds or have three or more axles? If you answered yes to both then yes it affects you. And you should get yourself an IFTA license and get IFTA stickers for each of your vehicles that qualify.

 

You're exactly right. IFTA filing is a lot of work and can take precious time away from actually running your company and making a profit. You can sign up with Thurcorp and their experts will take care of all your IFTA filing needs so you never even have to think about it. Email info@thurcorp.com to learn just how much they can do for you and get the peace of mind you need to run a successful trucking company.