• IFTA-qualified vehicles are those that operate in more than one IFTA jurisdiction and that meet certain weight and axle qualifications.
• Under the IFTA agreement, every qualified motor vehicle leased to a carrier is subject to the same IFTA requirements as a qualified motor vehicle owned by that carrier.
• IFTA does not apply to recreational vehicles.

International Fuel Tax Agreement (IFTA)-qualified vehicles are those that operate in more than one IFTA jurisdiction.

A qualified vehicle is defined as:

• A vehicle with a gross weight or registered gross weight that exceeds 26,000 pounds (11,793 kilograms);
• A vehicle (power unit) that has three or more axles, regardless of its weight; or
• A combination that has a registered gross weight that exceeds 26,000 pounds (11,793 kilograms).

When counting axles, only count the axles on the power unit or truck; trailer axles are not included in the axle count.

Leased carriers

Under the IFTA agreement, every qualified motor vehicle leased to a carrier is subject to IFTA requirements to the same extent and in the same manner as a qualified motor vehicle owned by that carrier. It is possible that a lessor may be considered a licensee, in which case that individual will be issued a fuel license upon application. The lessor can only be issued a fuel license if regularly engaged in the business of leasing/renting motor vehicles without drivers for compensation to other lessees or licensees. If the motor vehicle lease is for under 30 days, the fuels use/miles or kilometers permit holder for the vehicle under lease will be liable for the fuel use tax.

For those carriers using independent contractors under long-term leases (more than 30 days), the option is given to either the lessor or lessee to designate which party will report and pay the fuel use tax. If the lessee (carrier) assumes responsibility for reporting and paying motor fuel taxes, the base jurisdiction for purposes of IFTA will be the base jurisdiction of the lessee, regardless of the jurisdiction in which the lessor has registered the vehicle.

For motor vehicle leases of 30 days or less, the fuels use/miles or kilometers permit holder for the motor vehicle under lease will be liable.

In the case of a household goods carrier using independent contractors, agents, or service representatives, under intermittent leases, the party liable for motor fuel tax is:

• The lessee (carrier) when the qualified motor vehicle is being operated under the lessee’s jurisdictional operating authority. The base jurisdiction for purposes of IFTA shall be the base jurisdiction of the lessee (carrier), regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor or lessee; or
• The lessor (independent contractor, agent, or service representative) when the qualified motor vehicle is being operated under the lessor’s jurisdictional operating authority. The base jurisdiction for purposes of IFTA is the base jurisdiction of the lessor, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes.

Exceptions

IFTA does not apply to recreational vehicles.

The IFTA jurisdictions can also exempt certain vehicles from fuel taxes within the respective jurisdictions. For example, some jurisdictions will exempt buses or farm-plated vehicles from fuel taxes. Prior to claiming a vehicle exemption in any jurisdiction, carriers should thoroughly investigate the exemption and ensure it applies to the carrier’s operation.