International Fuel Tax Agreement (IFTA) is a fuel tax compact between member jurisdictions including all contiguous states and all Canadian provinces. The agreement promotes and encourages the most efficient use of the highway system by making the administration of motor fuel taxation uniform concerning motor carriers operating in several member jurisdictions, there by reducing paper work and compliance burdens for fuel tax reporting.
Upon the completion of an application and payment of the appropriate fees, ($10 for the first qualified vehicle and $1 for each additional vehicle) one fuel tax license is issued by the base state that authorizes travel in all IFTA, Inc. member jurisdictions. A set of decals is also provided, per vehicle and must be displayed. In order to qualify for IFTA, you must operate in two or more jurisdictions and your registered gross vehicle weight must exceed 26,000 pounds.
Once you have obtained your IFTA credentials, you are required to file quarterly tax reports showing all miles traveled and fuel consumed in all member jurisdictions. Accurate records must be maintained by all licensees supporting mileage and fuel reported on the IFTA return and are subject to audit.
The advantages of IFTA include:
- a single fuel tax license issued by the base jurisdiction authorizing travel in all IFTA jurisdictions
- a quarterly tax return containing mileage and gallon information for each of the member jurisdictions will be submitted only to the base jurisdiction
- fuel tax audits are generally performed only by the base jurisdiction.
Carriers who travel only in Nebraska should not be licensed for IFTA. The agreement is administered by the International Fuel Tax Association (IFTA, Inc.), Nebraska has been a member of IFTA since 1990.
Who Qualifies for IFTA
A motor vehicle used, designed or maintained for transportation of persons or property and:
- having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 lbs. or 11,707 kgms.
- having three or more axles regardless of weight; or
- used in combination when the weight of such combination exceeds 26,000 lbs. or 11,707 kgms gross vehicle weight or registered gross vehicle weight.
Qualified motor vehicle does not include recreation vehicles