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The International Fuel Tax Agreement (IFTA) is a base state fuel tax agreement instituted by the federal government. The lower 48 states and 10 Canadian provinces are members of IFTA.
Rather than having the carrier register with each individual jurisdiction for fuel tax reporting, the carrier registers just in the carrier’s base jurisdiction, and the base jurisdiction distributes the taxes to all other jurisdictions in which the carrier operated.
All vehicles with a gross weight or a registered gross weight exceeding 26,000 pounds, vehicles with three or more axles regardless of weight, and all combinations with a combined gross weight exceeding 26,000 pounds, and operating in at least one other jurisdiction besides the base jurisdiction are subject to IFTA.
Compliance options include a fuel trip permit (obtained by vehicle for each state of operation on a per-trip basis) or by a full IFTA license and decals. If the carrier elects a full IFTA license and decals, the carrier would be required to file quarterly fuel tax returns with the base jurisdiction, and keep detailed records of operations (mileage and fuel).