The International Fuel Tax Agreement (or IFTA) is an agreement between the lower 48 states of the United States and the Canadian provinces, to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. Alaska, Hawaii, and the Canadian territories do not participate. An operating carrier with IFTA receives an IFTA license and two decals for each qualifying vehicle it operates. The carrier files a quarterly fuel tax report. This report is used to determine the net tax or refund due and to redistribute taxes from collecting states to states that it is due.
This tax is required for motor vehicles used, designed, or maintained for transportation of persons or property and:
The IFTA license is a fuel permit required for all commercial vehicles having a gross vehicle weight of 26,001 lbs. or greater, or vehciles with three (3) or more axles, who travel between states (more than one state). The IFTA license decals will provide blanket coverage for the lower 48 states and Canadian provinces.
Most states require the carrier to establish their IRP (International Registration Plan) and obtain their approportioned plate prior to issuing an IFTA license and decals.
Those carriers who transport 15 or more passengers or transport commodities with a farm plate may obtain IFTA credentials without an IRP plate. All motor carriers who obtain IFTA licenses and decals must meet fuel tax reporting requirements