bob pitcher vp, state laws american trucking associations 703-838-7939 bpitcher@trucking

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Bob PitcherVP, State Laws

American Trucking Associations703-838-7939

bpitcher@trucking.org

Together We’ve Made It Happen – A Celebration of

30 Years of IFTA

THE INDUSTRY PERSPECTIVE

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

First, a little history…

30 Years Ago – Fuel Use Taxes Are a Crisisfor the Trucking Industry:

• Non-uniform• Burdensome• Expensive to Administer and Comply With

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Non-Uniformity:Vehicles

RegistrationCredentials

BondsLeases

Tax ReportsCredits & Refunds

Audit & Administration

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Vehicles Reported• > all commercial vehicles• > 2 axles• > 7,000 lbs. empty wt.• > 10,000 lbs. empty wt.• > 18,000 lbs. GVW or 7,500 lbs. empty wt.• > 16,000 lbs. GVW• > 30 gallon fuel tank capacity& at least 16 other definitions

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Registration• Annual, biennial, or permanent• One-time fees per fleet• Annual fees per fleet• Annual fees per vehicle• Licenses for each place of business• Renewable in October, December, January, March,

April, or July• Vehicle-specific cab cards • Account nos. on vehicle

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Credentials (DECALS!)

• 1 per vehicle – or 2?• On left side, right side – or front?• Display dates?• Annual, biennial – or permanent?• Fees?

YOU BETCHA! Charged by 22 states –TOTAL ANNUAL FEES PER TRUCK: $331.70

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Bonds

• Required by 19 states• Various amounts and limits• Required for refunds in c. 10 more states• Alternative security rarely allowed

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Leases

Who’s responsible for reporting?– Lessee?– Lessor?– Party buying fuel?– Vehicle operator?– Up to parties?– State permission needed?– Depend on term of lease?

Copy required in vehicle?

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Tax Reports• Frequency: monthly, quarterly, annually• Due date: 20th, 25th, 30th, last of month

Postmark honored?• Format• Computation of tax

Vehicles covered? Formula? State MPGs?Individual vehicle MPGs?

• Supporting documentation required• Payment in certified funds

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Credits & Refunds

• Do credits carry over?• How long?• Refunds available?• Minimum amount?• Audit first?• Documentation?• Other restrictions?

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Audit & Admin.• Record requirements

– Official fuel receipts– Original documents

• Frequent changes in requirements• Rules inaccessible to taxpayers• Multiple audits under different rules• LOTS of Gotchas

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Fuel Use Taxes in 1983

• Non-uniform ? Definitely

• Burdensome ? For carriers of all sizes

• Expensive ? US DOT: $1 billion a year in administrative

costs for motor carriers

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

IFTA

• First implemented 1983 3 members• Redrafted per NGA 1986 4 members• Required by ISTEA 1991 14 members• ISTEA deadline 1996• IFTA Recodified 1995-98• Today 58 members

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

Lonette TurnerCEO/CFO

International Fuel Tax Association, Inc.480.839.4382

lturner@iftach.org

Together We’ve Made It Happen – A Celebration of

30 Years of IFTA

THE JURISDICTION AND IFTA, INC. PERSPECTIVES

Jurisdiction IFTA Implementation

3 5 24 422

58

NUMBER OF LICENSEES

2003 and 2013 based on Annual Reports Filed.Renewals would be approximately the same.

NUMBER OF DECALS

Assuming 10 QMVs per carrier and 2 decals per QMV

NUMBER OF TAX RETURNS PROCESSED

Assuming 4 quarterly returns filed.

Jurisdictions – Fully ParticipatingIn Clearinghouse

53

11

58

5

35

4

3

What Did The Clearinghouse Mean for the Participating Members?

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013

• Fewer licenses and decals to issue• Fewer tax returns to process• More audits completed (other jurisdictions

auditing on your behalf)• Decrease in costs to process (for both

personnel and other administrative costs)• Open communication with other jurisdictions• Program is reviewed on a regular basis

Summary of Benefits(Some of Them)

INTERNATIONAL FUEL TAX

AGREEMENT

Celebrating 30 Years of Cooperation and Trust

1983 - 2013