The International Fuel Tax Agreement (IFTA) is an agreement between the lower 48 U.S. states and 10 Canadian provinces. The agreement helps to simplify fuel tax reporting for carriers operating in multiple jurisdictions. Under IFTA, carriers are issued a decal for each qualified vehicle that they operate. These decals serve as proof of payment for fuel taxes and must be displayed on the vehicle`s exterior.
To obtain an IFTA decal, carriers must submit an order form to their base jurisdiction. The order form can usually be found on the jurisdiction`s website or requested from the motor carrier division. The form will require information such as the carrier`s name and address, USDOT number, and the number of decals needed. Carriers will also need to provide the make, model, and license plate number for each qualified vehicle.
It is important to note that decal orders may only be placed by the carrier or an authorized representative. The base jurisdiction may require additional documentation to verify the carrier`s eligibility for IFTA decals, such as previous tax records or proof of liability insurance.
Once the order form is completed and submitted, the base jurisdiction will process the request and issue the decals. Decals are typically issued on a quarterly basis and must be renewed annually. Failure to renew decals or display them properly on qualified vehicles may result in fines and penalties.
In addition to simplifying fuel tax reporting, IFTA also helps to ensure that each jurisdiction receives their fair share of fuel tax revenue. The agreement requires carriers to submit quarterly tax reports to their base jurisdiction, detailing the number of miles traveled and fuel purchased in each jurisdiction. The base jurisdiction then distributes the appropriate amount of tax revenue to each jurisdiction.
In conclusion, obtaining IFTA decals is an important step for carriers operating in multiple jurisdictions. By submitting an order form and properly displaying the decals, carriers can simplify fuel tax reporting and avoid fines and penalties. Carriers should be sure to follow their base jurisdiction`s guidelines and requirements for ordering and renewing decals.