Understanding Fuel Permits And IFTA Regulations
by Elliot Simpson
Driving a tractor-trailer for a living comes with a lot of requirements and paperwork that needs preparing. Some trucks may require special paperwork like fuel permits, depending on the activity of that truck. The regulations governing lag trucks come from local, state, and federal sources and keeping up is not always easy.
Fuel Permits
A fuel permit allows a truck that is not IFTA (International Fuel Tax Agreement) registered to cross jurisdictions in special circumstances. Typically the trucks that require these permits are trucks that generally operate within one state, but for some reason, they are traveling out of the state to pick up or drop off a load. The permit allows the jurisdiction to collect the fuel tax due them under the IFTA agreement even though the truck is not registered with them. Temporary fuel permits are not intended for long term use and should be limited.
Who is Required to Get a Permit
Any qualifying vehicle traveling between 2 or more IFTA member jurisdiction that does not hold an IFTA registration must get a fuel permit. To be a qualifying vehicle, you must have two axles and weigh over 26000 lbs or have three axles at any weight. This qualification includes farm vehicles and buses if they cross state lines or into other jurisdictions like Canada. Many agencies can get your fuel permits for you. They will handle the paperwork and issue you the permit
What is the IFTA
The International Fuel Tax Agreement is made up of members across the US and Canada. The intention os the IFTA is to make tracking tax across the member jurisdictions easier for the truck driver. The driver only needs to submit one fuel report every quarter and the IFTA figures out where the taxes go and how much the driver has to pay or if the driver is due a refund. Companies running multiple qualifying vehicles can more easily report fuel usage across the entire fleet as well.
Fuel Tax Refunds
Using a temporary fuel permit is fine for occasional travel across state lines but when you are making these trips regularly, you may be paying more fuel tax than you need to and since the tax is different from jurisdiction to jurisdiction, you could qualify for a refund if you are registered. Fuel permits can be issued multiple times but are not intended for long term use. If your company is using temporary fuel permits more than a couple times a year, you probably will benefit from IFTA registration.
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