The International Fuel Tax Agreement (or IFTA) is an agreement between the lower 48 states of the US and the Canadian provinces, to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. Alaska, Hawaii, and the Canadian territories are not required to participate, however all of Canada and Alaska do. An operating carrier with IFTA receives an IFTA license and two decals for each qualifying vehicle it operates. The carrier files a quarterly fuel tax report. This report is used to determine the net tax or refund due and to redistribute taxes from collecting states to states that it is due.

This tax is required for motor vehicles used, designed, or maintained for transportation of persons or property and:

• The Power Unit has two axles and a gross vehicle weight or registered gross vehicle weight in excess of 26,000 pounds, and/or

• The Power Unit has three or more axles regardless of weight, and/or

• Is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle or registered gross vehicle weight

To apply for IFTA account you must complete the IFTA application and POA. There is a onetime fee for the IFTA Setup.