IFTA (International Fuel Tax Agreement) is a fuel tax reporting system between the contiguous United States and Canadian provinces and territories. IFTA member jurisdictions allow motor carriers to purchase fuel anywhere within the IFTA region and file a single quarterly tax return.
An IFTA calculator is a tool that helps carriers determine their IFTA tax liability. The calculator takes into account the following factors:
Determining distance traveled in each jurisdiction is essential for the International Fuel Tax Agreement (IFTA). This involves meticulous record-keeping of trips across state lines, typically using tools like GPS trackers, logbooks, or mileage calculation software. For instance, a trucking company operating between Oregon, California, and Nevada must accurately track mileage within each state to apportion fuel tax payments correctly.
Accurate distance tracking ensures proper fuel tax distribution among jurisdictions, preventing penalties and audits. This process streamlines interstate commerce for the trucking industry, simplifying tax compliance and promoting transparency. Historically, managing interstate fuel taxes was a complex and burdensome process. IFTA simplified this by allowing carriers to file a single quarterly tax return, streamlining administrative tasks and reducing paperwork. This efficient system depends on precise mileage calculations to function effectively.