how does fuel tax work?

955056

{"text":"thinking about starting a lease with a reputable company sometime in the next couple of years, and then taking the truck independent. I'm aware of insurance, dot number, and most of the other financial aspects of managing a truck. \n\nI just want to know how fuel taxes work? Do you just pay an IFTA fee or do you have to pay a certain amount to each state or do you have to pay per mile run in each state? I've heard some conflicting answers, and wanted to ask an O/O personally. ","videos":"[]","link":"{}","pics":"[]","canComment":true,"externalShare":false}

724453

{"replyTo":"","text":"you pay your for your ifta and your fuel receipts dictate what you owe. Sometimes it's worth fueling in a state like PA where fuel might not be the cheapest to dodge the fuel tax charged to run through there especially if you're through there often","replyToPid":0}

955056

{"replyTo":"","text":"thank you gentlemen very much..  this helps me more than a little","replyToPid":0}

929659

{"replyTo":"","text":"thank you for asking this question!  And the really helpful answers.   I had been pondering the same thing!","replyToPid":0}

255377

{"replyTo":"","text":"You get the ifta decals for free or very small charge. You’ll report quarterly (April, July, October and  January) you will have to keep track of every gallon you purchase and what state you purchase it in. You will have to keep track of every mile in every state that you drive. Then you go to your states Dot website and learn how to file there. It takes me a couple hours a quarter but I do it the old fashioned way. There are various ways to make this easier via electronic apps and such. When you purchase fuel all you need to be concerned with is the index price. Index price is pump price minus ifta tax for diesel in that state. There are sources to see the ifta tax rate in each state. Either you’ll pay the ifta tax at the pump or at the end of the quarter so it’s always in your best interest to only be concerned with index price. Indiana has some goofy double tax that you just add both together to get the index price. Oregon has no ifta tax and you pay per mile via pre paid permit before you go there. If you get any information contradicting these statements then it’s bad information. It’s based off your average mpg for the quarter so you’ll keep track of total miles for the quarter as well. Basically if you’re averaging 6 mpg and fuel is $2.40 then your fuel cost is .40 cpm of which, roughly .03 cpm would be the ifta tax rate for states such as Tennessee, Missouri and Arkansas if memory serves they’re all about .16- .17 cpm. Then a state like Illinois has a .60 cpm ifta tax rate so that same .40 cpm you averaged for the quarter will have cost you .10 cpm for every mile driven in Illinois, .07 cpm higher than the previous states I listed. These ifta rates change occasionally but the portal that your DOT is utilizing will be current. I like to fuel up in Illinois often as the index price is usually the best deal. Then get a credit on my quarterly report but sometimes I owe a couple hundred. It’s 6 one way half dozen the other because you’ll pay at the pump or at the end of the quarter if you’re reporting accurately which I do recommend.","replyToPid":0}

63824

{"replyToPid":0,"replyTo":"","text":"This will help owner op to figure where's is the best to get fuel. https://youtu.be/1xLrlIUTM_o it's not about buying the cheapest fuel you can get at the pump because you will get burned on ifta"}

975541

{"replyToPid":0,"replyTo":"","text":"It's a very easy system, you pay taxes in each state you burn fuel, with the assumption you burn it all mpg equally in each state. You track your total gallons pumped in each state, that's how much you prepaid in taxes, than use your milage from each state you drove to divide the taxes you owe. If the total tax due is more than you prepaid, you pay IFTA the difference.\n\nit's fairly easy, I have a record of all the addresses I pick and deliver, run it through Google maps for distance, report to IFTA. Fuel is totaled by receipts."}