Federal & State Regulations | Motor carrier fuel/Highway use/Mileage tax - Iowa

International Fuel Tax Agreement (IFTA)

IFTA applies to qualified vehicles operating in more than one IFTA jurisdiction. A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and that:

Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds; or
Has three or more axles regardless of weight; or
Is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle weight.

IFTA fees

IFTA license, $10

IFTA decals, $0.50 per vehicle

Temporary decal permit

A 30-day temporary decal permit is available for carriers with a valid IFTA account in good standing. The carrier must submit the permanent IFTA decal request form and pay the $0.50 decal fee at the time the temporary permit is requested. The temporary permit will be faxed to the carrier.

Fuel use tax

Carriers based in an International Fuel Tax Agreement (IFTA) jurisdiction must obtain an IFTA license and decals, or a trip permit, for each qualified vehicle entering Iowa.

Reciprocity

Iowa, Wisconsin, and Minnesota have a fuel tax reporting reciprocity agreement that allows an exemption from interstate fuel tax reporting and/or display of fuel licenses and decal requirements for qualified motor vehicles using fuel on which they have already paid the fuel tax. Carriers with qualified vehicles owned, leased, or operated by a resident of either state operating no further than 30 miles from the Iowa-Wisconsin and the Iowa-Minnesota border are entitled to receive reciprocity.

Carriers with qualified vehicles owned, leased, or operated by a resident of either Iowa or Nebraska have reciprocity in making deliveries within the corporate limits of Omaha, Bellevue, Dakota City and South Sioux City in Nebraska and Council Bluffs, Carter Lake, Port Neal, Hamburg, and Sioux City in Iowa. An additional agreement allows travel between Nebraska City, Nebraska, and Hamburg, Iowa, with travel restricted in Iowa from the Nebraska state line to Hamburg on Highways 2, 275, and 333. The IFTA border commercial zone agreement between Omaha and Council Bluffs extends five miles beyond the corporate city limits.

Missouri and Iowa recognize a reciprocal agreement that allows IFTA-qualified farm and ranch vehicles operated by private carriers and school buses to operate within 30 miles of the state borders without a fuel license or decal. The agreement does not apply to for-hire carrier vehicles.

Mileage/highway use taxes

There are no Highway Use Taxes charged in Iowa.

Tax refunds or credits

IFTA

Information regarding credits or refunds under IFTA is included in the IFTA Agreement manual located at the beginning of this guide in Section XIII Credits and Refunds.

PTO/Reefer fuel

Iowa does allow for refunds on tax-paid fuel used in reefer or power-take-off equipment. A refund permit is required, and refunds must be requested within four months of purchase, with the original fuel receipts submitted with the request. Refunds should not be requested unless the carrier is requesting a minimum of $60.

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['Fleet Taxes']

['Highway use - Mileage tax']

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Motor carrier fuel/Highway use/Mileage tax - Iowa