IFTA Fuel Tax Requirements Can be Tricky

We say that fleet telematics can save you money on many business costs including fuel; however, we thought we would go into a more business specific situation to better demonstrate this. We thought we’d briefly discuss the IFTA fuel tax, where you can find the specific IFTA requirements and how fleet telematics can help ease those costs.

What is The IFTA Fuel Tax?

The International Fuel Tax Agreement (IFTA) is an active agreement within the lower 48 states and Canadian provinces (Hawaii, Alaska are excluded) intended to simplify fuel reports. Operating carriers receive two decals along with their IFTA license, and they must pay a quarterly fuel tax report.

IFTA reports can prove tricky for owners, especially if they have trucks that weigh over 26,000 pounds that frequently crosses state lines. When calculating your IFTA Fuel Tax report, you need to check the IFTA website, and your state’s specific IFTA requirements and tax-rate changes.

Oregon, for example, has designed a weight tax to charge drivers for its use on the road wear. If it’s determined that road wear doubles, then owners can face up to 10% tax increase. This is why it’s important to keep accurate information on your mileage.

Fleet Telematics Captures Your Mileage

Fleet telematics is a tool you can use to help you keep accurate tabs on your IFTA fuel tax reports. You can see the paths your vehicles take so that you can validate where your employees say they are and where they have been. In turn, you can also track the mileage from their expeditions.

Rhino Fleet Tracking has even helped customers resolve IFTA Fuel Tax issues. Our fleet telematics solution helps resolve other issues as well. As limousine manager, John Pond, recalls, “We faced an audit from IFTA over gasoline taxes, but it turned out that the IFTA people will accept reports from the fleet trackers as proof of mileage.”

Rhino Fleet Tracking offers the software you need, such as Google Maps, detailed reports, vehicular path tracking and Landmark tracking so you can pay only what you’re supposed to on your IFTA Fuel Tax reports.

Let us help you prevent any IFTA Fuel Tax issues.