What is IFTA?
IFTA, the International Fuel Tax Agreement, is an agreement among the 48 contiguous US states and 10 provinces in Canada. The agreement is to simplify reporting of fuel use taxes by motor carriers that operate in more than one state or province.
So, if you qualify, registering with IFTA can make things more convenient for your business! Essentially, it allows you to register with your base jurisdiction (state or province) and get a single fuel tax license for all your vehicles. Then, your vehicles will have authorization to travel in all IFTA jurisdictions.
Am I qualified for IFTA?
While it is not mandatory to register for IFTA, it does make things easier. You’ll be able to file one quarterly tax return with the jurisdiction you signed up with. So, you won’t have to get a fuel permit from each province or state you travel through.
To qualify for IFTA, you must own and operate a vehicle that transports people, or cargo, for compensation and has:
- three (or more) axles
- two axles as well as a gross weight (or registered gross weight) of more than 26,000 pounds
- a gross vehicle weight of more than 26,000 (when combining both the unit and trailing unit)
It is important to note that recreational vehicles (i.e. pickup trucks with campers, motor homes, etc.) are generally not considered for registration under IFTA.
Registering for IFTA with San Diego Truck Insurance
San Diego Truck Insurance understands how much time and energy you put into your commercial auto business. But, don’t worry about the legal requirements and laws involved in the business! Instead, let our agents walk you step-by-step through each process. This way, you won’t have to worry about missing any paperwork or registration for your business.
Our skilled, experienced agents know the ins and outs of the commercial auto industry. Let us know what type of business you have and we can help you figure out if you qualify for IFTA. Then, we’ll help you through the application process.