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

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.

Qualified motor vehicle does include vehicles operating intrastate, but does not include recreational vehicles.

All fuel usage of gasoline, special diesel or biodiesel, gasohol, and LPG in Indiana must be reported on the Quarterly IFTA tax return.

Operators of charter buses, school buses (operated by, for, or on behalf of a state, political subdivision, or private or privately operated school), and qualified vehicles displaying dealer registration plates are not required to register under IFTA in Indiana.

Carriers based in Indiana and only operating intrastate are required to be permitted and reported — but not under IFTA. They must register for an Indiana Intrastate Motor Carrier Fuel Tax Annual Permit and intrastate decal. However, if the fleet consists of qualified vehicles that have International Registration Plan apportioned plates and travel outside of Indiana, in addition to qualified vehicles that have Indiana base plates and travel only inside the State of Indiana, an IFTA license is needed for the entire fleet.

IFTA fees

IFTA license, $25 processing fee (and $1 processing fee and a 2 percent license service charge if paid by credit card)

IFTA decals, no fee

Temporary decal permits

No-fee 30-day temporary decal permits are available from the state office for carriers with an established IFTA account. The temporary decal permit converts to a permanent decal if requested when ordering the temporary. Because the permit is for a temporary decal only, a copy of carrier's IFTA license must also be in the vehicle in order to be legal.

Fuel use tax

Motor carriers who operate qualified commercial motor vehicles intrastate on Indiana highways, including Indiana toll roads, must obtain an Indiana Motor Carrier Fuel Tax (MCFT) Annual Permit.

A “commercial motor vehicle” is defined to include any passenger vehicle that seats more than nine passengers in addition to the driver; any road tractor or tractor truck, or any other truck having more than two axles; a truck having a gross weight or a declared gross weight greater than 26,000 pounds; and a vehicle used in combination if the gross weight or the declared gross weight of the combination is greater than 26,000 pounds, that is propelled by motor fuel (includes two-axle trucks over 26,000 pounds).

The MCFT annual permit covers all qualified vehicles operated by the permit holder. The permit expires on December 31 of each year and must be renewed annually by that date. In conjunction with the annual permit, the Department will issue a compliance emblem and one license card. The original license card should be retained in the licensee's files, and a photocopy carried in each qualified vehicle operated by the licensee. The compliance emblem must be displayed on the driver's side of the power unit, and the cab card must be maintained in the vehicle. If a vehicle is leased and operated by more than one carrier, in addition to displaying the compliance emblem and cab card, a photocopy of the operating carrier's annual permit must be maintained in the vehicle. The operating carrier is the carrier who is responsible for reporting and remitting the motor carrier fuel tax as outlined in the lease.

Annual permit holders must file quarterly tax reports and pay taxes due on or before the last day of the month immediately following the end of the quarter. Due dates which fall on a Saturday, Sunday, or legal holiday are extended to the next succeeding date that is not a Saturday, Sunday, or holiday. Permit holders must file a report each quarter even if they owe no tax for the quarter.

Carriers who do not hold an annual permit, but wish to operate in Indiana immediately, may obtain a five-day trip permit through a permit service.

Fuel use tax fees

Intrastate annual permit, $25

Intrastate decals, no fee

Alternative fuel decal

Public or private utilities with vehicles registered in Indiana using alternative fuel must purchase an alternative fuel decal and pay an annual fee. Alternative fuel is defined as any liquefied petroleum gas (LPG), compressed natural gas product, or a combination of these used in an internal combustion engine (includes butane, propane, and compressed natural gas).

The decal must be affixed to the inside lower left windshield on the driver's side, and is valid from April 1 through March 31 of the following year.

Annual fees - alternative fuels
Recreational vehicle or passenger vehicle, truck or bus with a declared gross weight not over 9,000 pounds that is owned by a public or private utility	$100.00
Truck or bus with a declared gross weight over 9,000 pounds up to and including 11,000 pounds that is owned by a public or private utility	$175.00
Alternate fuel delivery truck powered by alternative fuel whose declared gross weight is more than 11,000 pounds that is owned by a public or private utility	$250.00
Truck or bus whose declared gross weight is over 11,000 pounds	$300.00
Tractor designed to be used with a semitrailer	$500.00

Mileage/highway use taxes

There are no highway use taxes charged in Indiana.

Tax refunds or credits

Indiana does allow for credit on the quarterly tax return, on any excess tax paid on fuel purchased in Indiana. When filing the return a refund can be requested. However, if the credit is to be carried over, it can only be carried over for one quarter, or it is lost.

IFTA

Information regarding credits or refunds under IFTA is included in the IFTA Agreement Manual.

PTO/Reefer fuel

A carrier cannot take credit on the quarterly tax return (either IFTA or MCFT) for tax-paid fuel used in power take-off (PTO) or reefer units; however, they can request a refund separately. A motor carrier who is seeking a Proportional Use Credit (PUC) of taxes paid on motor fuel consumed in a PTO or reefer must first be certified by the Indiana Department of Revenue. After PUC certification, they are eligible to file the MCS-1789 Claim of or Proportional Use Credit. The credit can be claimed for all qualified motor vehicles that have a common fuel reservoir used to both propel the vehicle and power some other commercial-purposed PTO or reefer unit of the vehicle. The motor carrier must file the Form Prop-1, Proportional Use Credit Certification Application. The application must be received in time to allow MCS to certify the application before April 1 to be eligible to file claims for the credit during the first quarter of the same year. The carrier must also file the form MCS-1789, Claim for Proportional Use Credit, each quarter.

Non-Indiana based carriers wishing to claim the PUC must submit a copy of their quarterly IFTA return with form MCS-1789.

Only carriers that have filed and paid their quarterly fuel taxes on time are eligible for the credits.

['Fleet Taxes']

['Highway use - Mileage tax']

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Motor carrier fuel/Highway use/Mileage tax - Indiana