IFTA - International Fuel Tax Agreement
Should I register for IFTA in my state?
If you have a qualified motor vehicle, with the following configurations, that is used, designed or maintained for transportation of goods and people you must register for International fuel tax agreement (IFTA).
Configurations:
- A gross weight or GVWR exceeding 26,000 lbs with a maximum of two axles.
- Three or more axles without considering the gross weight.
- Weight exceeding 26,000 lbs when used in a combo.
IFTA doesn't apply for any recreational vehicle unless it is used in combination for any business purposes. Recreational vehicles are those that are used by an individual for personal pleasure this includes motor homes, pickup trucks, campers, buses etc.
To apply for a license, use MV-IFTA-1:
Fill the required details in the application completely and submit it in person or by mail to:
Alabama Department of RevenueMotor Vehicle Division
Motor Carrier Services
P.O. Box 327620
Montgomery, AL 36132-7620.
By Fax to:
(334) 242-9073
Now, you can easily file your IFTA quarterly report with ExpressIFTA. With simple, fast, and secure features all your report and tax calculations will be taken care without any manual effort.
START YOUR IFTA REPORTIFTA Decals
Each qualified vehicle must have its own IFTA decals. You must pay for decals while you submit your IFTA application. Alabama sells each set of decals for $17. It will take nearly 3-5 days for the state to issue your IFTA license and decals.
What credentials will I receive?
Once the application is approved by the state you will receive a license and a pair of decals for your qualified vehicle. Make sure to keep a photocopy of the license in your motor vehicle and the original at your business place. The IFTA license will be active for the calendar year (from January 1 to December 31st).
Quarterly Returns
Due Dates:
IFTA Quarterly Return Due Dates
The due date for IFTA quarterly return will be on the end of the month (usually the last business day) that follows immediately after the quarterly reporting period i.e. if your reporting period ends at March, your due date will on 30th of April (next month). If the date falls on any legal holidays or weekends, the next day will be considered as a final due date.
Reporting Quarter | Reporting Period | Due Date |
---|---|---|
1st | January - March | April 30 |
2nd | April - June | July 31 |
3rd | July - September | October 31 |
4th | October - December | January 31 |
What is the penalty and interest rate for filing a late quarterly fuel tax report?
Neglecting or skipping to pay or remit the tax due on time will owe you a penalty up to $50 or 10% of the total tax due to all member jurisdictions. Not only penalty but also an interest will be drawn for late filing or any underpayment tax due. The interest will be calculated at a rate of .4167% per month. You must pay late filing penalty even if your net tax liability is zero or a credit.
How do I obtain a return?
You must file electronically to get your international fuel tax agreement (IFTA) returns.
Where can I get more information?
IFTA Rates For 3rd Quarter 2021
State / Province | Gasoline | Special Diesel | Gasohol | Propane | LNG | CNG | Ethanol | Methanol | E-85 | M-85 | A55 | Biodiesel | Electricity | Hydrogen | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ALABAMA (AL) | U.S. Can. |
0.2600 0.0850 |
0.2700 0.0882 |
0.2600 0.0850 |
0.2700 0.0882 |
0.0800 0.0261 |
0.0800 0.0261 |
0.2600 0.0850 |
0.2600 0.0850 |
0.2600 0.0850 |
0.2600 0.0850 |
0.2600 0.0850 |
0.2700 0.0882 |
IFTA Quarterly Tax Reporting Requirements
To simplify the collection of motor fuel taxes, the International Fuel Tax Agreement (IFTA) was started among the jurisdictions. These jurisdictions include 48 states of the United States and Canadian provinces. You must file a quarterly fuel use tax return (IFTA) with the base jurisdiction. This return will report details about the miles traveled, gallons purchased, and tax/credit dues (for each jurisdiction). Finally, the base jurisdiction will collect and distribute taxes to each member jurisdictions that you have traveled through (on a quarterly basis).
The carrier or licensee must report fuel taxes by filing quarterly tax returns. The tax varies based on the fuel type for each jurisdiction. Fuel types include hydrogen, propane, gasoline, diesel etc. and accordingly the tax will be obtained and distributed to all member jurisdiction.
Below are the requirements to file the IFTA quarterly tax return.
- Receipts of purchased tax-paid gallons (at member jurisdictions)
- Miles traveled in member jurisdictions
- Total miles traveled (both in member and non-member jurisdictions)
Start using ExpressIFTA, the online IFTA fuel tax reporting software to file your IFTA electronically. This user-friendly software allows you to easily generate your quarterly report with accurate tax calculations. You can instantly create detailed reports of your distance, fuel used/purchased and miles traveled in each jurisdiction. With IRP reports, you can track your vehicle movement and mileage traveled in member jurisdictions.
ExpressIFTA accepts late returns, so you can calmly prepare your quarterly report for the quarter you need to file. To know more, click here
Generate IFTA Report NowFor more information, see: https://www.dol.wa.gov/vehicleregistration/iftareturn.html