However, it is possible to recover your IFTA license by paying taxes due and filing late tax returns. The State of Florida does not include recreational vehicles in the IFTA tax unless they are used in conjunction with commercial activity. Recreational vehicles include motorhomes, pick-up trucks with connected motorhomes and buses, if used exclusively for the personal pleasure of an individual. In the not-so-distant past, airlines faced many obstacles when it came to declaring fuel taxes, with branches in more than one jurisdiction. In its IFTA quarterly report, the carrier then lists the total number of miles flown and the gallons of fuel purchased in the participating areas. You can calculate the tax debt by combining average fuel consumption with kilometres driven. Yes, Florida still requires you to submit a “zero” ratio, even though no IFTA fuel or miles were flown this quarter. Today, the 48 lower states and 10 Canadian provinces are members of IFTA. Hawaii and Alaska are excluded, however, which is useful for geographical reasons. (For example, Hawaiian airlines are not necessarily known to travel to California.) In 1983, Washington, Iowa and Arizona founded IFTA as a regional model, building on the program that proved to be a formal one in northern New England. The agreement was eventually expanded to 16 states and was established in 1991 as an Arizona-based nonprofit, the International Fuel Tax Association. In that sense, we should take a closer look at the agreement and take a closer look at what it means for heavy-duty companies in the United States and Canada. The International Fuel Tax Agreement (FITA) is an agreement between states that declare fuel taxes on intergovernmental airlines.
To register, you must: Complete an IFTA application for the state you are in, or let The Truckers Accounting and Permitting Service, Inc. do it for you. Once you have registered with IFTA, a quarterly tax return must be filed, even if the licensee does not operate or purchase fuel in an IFTA country in a given quarter. There is a late penalty of $50, or 10% of net tax debt, depending on the higher value. Interest is calculated on all taxes payable that tax each jurisdiction at a rate of 0.4167% per month. Even if you receive a net refund, interest continues to apply to each jurisdiction for each fuel underpayment using tax on that jurisdiction and is charged for each month or fraction of a month from the day after the return due date. Prior to IFTA, each state had its own fuel tax system and a truck of tax authorizations needed for each state in which it worked. Most states have created ports of entry to issue permits and tax collection, costing the lives of the truck industry and the states.
Pre-IFTA trucks in interstate commerce had special plates (“bingo sheets”) with each state`s authorization sticker affixed. This has been ineffective and has proven costly to manage for each state. You must file a quarterly fuel tax return and submit a “zero ratio” even if no fuel has been consumed. Carriers often want to know what condition they need to submit IFTA reports in. Under the IFTA, the airline submits a single quarterly fuel tax return. This information helps determine the net tax. And, if necessary, it is also useful to determine if a refund is due. The airlines then pay taxes to the jurisdiction in which the IFTA licence applies. Subsequently, Member States receive distributions.
Where a carrier is a qualified IFTA licensee and does not wish to participate in the IFTA programme, the carrier may obtain a temporary permit to use the tank to travel to Member States on the basis of Regulation No.