['Fleet Taxes']
['Highway use - Mileage tax']
07/19/2024
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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.
If carrier’s base operation is in Pennsylvania, any vehicle over 26,001 pounds that operates only intrastate must display a Motor Carrier Road Tax (MCRT) decal. No fuel tax payment is required but the carrier must track the mileage by vehicle and fuel in order to receive the decal.
IFTA fees
IFTA license, no fee
IFTA decals, $12 per vehicle
MCRT decals (intrastate, $12 per vehicle
Temporary decal permit
A 30-day temporary IFTA decal permit is available for $7 per vehicle through the state office, providing the carrier is in good standing and has a valid IFTA license. Carriers must report operations under a temporary permit on the IFTA return.
Fuel use tax
Pennsylvania's intrastate fuel reporting law applies to all qualified motor vehicles used, designed, or maintained for transportation of persons or property and (1) having two axles and a gross vehicle weight, or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or (2) having three or more axles regardless of weight; or (3) is used in combination when the weight of such combination exceeds 26,000 pounds or 11,797 kilograms gross vehicle or registered gross vehicle weight.
Carriers with Pennsylvania-based vehicles that do not operate outside Pennsylvania must register for the Motor Carrier Road Tax. Each vehicle which qualifies for the road tax must display a road tax vehicle identification marker ($12 fee per vehicle). Markers must be renewed annually and are valid from January 1 to the following December 31. The markers are to be displayed on the upper half of the left hand door of the vehicle. They are not transferable to other vehicles or carriers once they are assigned.
Quarterly road tax returns are not required from any carrier who is credentialed as Pennsylvania non-IFTA. On the annual renewal, carriers must attest to exclusive Pennsylvania operations and must verify that all fuel will be purchased tax-paid. Operational records (miles and fuel purchases) must be maintained to verify Pennsylvania operations.
Mileage/Highway use taxes
The are no highway use taxes charged in Pennsylvania.
Tax refunds or credits
For those motor carriers filing Motor Carriers Road Tax Returns, the Department of Revenue does allow for both credits and refunds to be utilized by the carrier. Every motor carrier is entitled to credit to the extent of tax-paid purchases made within Pennsylvania. If the credit exceeds the amount of tax for which the carrier is liable, the excess may be applied to any of the six succeeding quarters against any tax for which the carrier may become liable under the Motor Carriers Road Tax.
IFTA
Information regarding credits or refunds under IFTA is included in the IFTA Agreement Manual.
Pennsylvania allows motorcoach operators to request a refund on some fuel tax. Operators with buses having three or more axles, or a registered gross weight in excess of 26,000 pounds, and having a seating capacity of 20 or more passengers excluding the driver, may apply for reimbursement.
Reimbursement can be claimed for the additional oil company franchise tax included in the Pennsylvania fuels tax paid at the time of purchase, or paid through IFTA on undyed fuel consumed on Pennsylvania highways. Refund requests must be filed quarterly on the last day of the month following each quarter. If filed after the due date, refund will be denied.
PTO/Reefer fuel
Pennsylvania provides for a reimbursement of motor fuel taxes paid on undyed diesel and undyed kerosene used in truck refrigeration units. To be eligible for the reimbursement:
- Individual fuel purchases and invoices must be in quantities of 75 gallons or less for each fueling;
- The fuel must be placed into a separate supply tank connected only to a truck-mounted refrigeration unit (fuel placed into the tank used to supply fuel for the vehicle's engine is not eligible for reimbursement);
- Carriers must submit reimbursement claims postmarked on or before the 60th day following the end of each calendar quarter; and
- Carriers must maintain records relative to such fuel purchases for three years following the submission of a claim.
Fuel purchase documentation such as invoices must show the vendor's name and address, date of purchase, type of fuel, gallons purchased, total cost, vehicle unit number, the purchaser's name and verification the fuel was reefer fuel. In cases where fuel is dispensed from the carrier's own bulk storage into a supply tank used exclusively for truck refrigeration, the carrier must maintain records similar to the above to substantiate that the bulk-fuel purchases were used in truck refrigeration and that tax was paid on the fuel purchased in Pennsylvania for which tax reimbursement is sought.
The department may require a claimant to satisfy any sales/use tax liability on the undyed diesel/kerosene for which the reimbursement is claimed.
Records as described above must be maintained for a period of three years following the submission of a reimbursement claim.
Pennsylvania also allows reimbursement of the Liquid Fuels and Fuels Tax paid on the fuel consumed in agricultural power-take-off equipment. The reimbursement applies while loading, in Pennsylvania, for delivery to a farm, or unloading at a farm in Pennsylvania, feed, feed products, lime, or limestone products for agricultural use.
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['Fleet Taxes']
['Highway use - Mileage tax']
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