The International Fuel Tax Agreement (IFTA) Decal: What You Need to Know
As a truck driver or fleet manager, it`s essential to understand all the necessary requirements for operating your vehicle legally. One of these requirements is the International Fuel Tax Agreement (IFTA) decal.
What is the IFTA?
The IFTA is a cooperative agreement between the lower 48 states of the United States and the Canadian provinces. Its purpose is to simplify the reporting of fuel use by motor carriers operating across state and international borders.
Under IFTA, motor carriers file a quarterly fuel tax report and payment to their base state or province. The fuel tax report documents the amount of fuel purchased and consumed in each jurisdiction. The base state or province then redistributes the fuel tax revenue to other jurisdictions based on the carrier`s reported fuel use.
What is an IFTA decal?
An IFTA decal is a sticker that must be displayed on each side of the cab or power unit of a qualified motor vehicle. The decal indicates that the vehicle is registered under IFTA and has paid all necessary fuel taxes and fees.
The IFTA decal is color-coded, with each color representing a specific year. The color for the current year`s decal is assigned based on the carrier`s base state or province.
Why do I need an IFTA decal?
A valid IFTA decal is required to operate a qualified motor vehicle in any IFTA member jurisdiction. Failure to display a valid decal can result in fines, penalties, and even vehicle impoundment.
Additionally, not properly registering and reporting fuel use under IFTA can result in audits and legal action, ultimately costing carriers time and money.
How do I obtain an IFTA decal?
To obtain an IFTA decal, carriers must first register for an IFTA account with their base state or province. Once registered, carriers will receive an IFTA license and decal for each qualified motor vehicle.
The cost of the IFTA license and decal varies by state or province and is typically based on the number of vehicles registered and the anticipated fuel use. Carriers must renew their IFTA license and decals annually to maintain compliance.
In conclusion, the IFTA decal is a crucial requirement for any motor carrier operating across state and international borders. Ensuring that your vehicles display valid IFTA decals and properly reporting fuel use can save time and money while avoiding potential legal consequences. Stay compliant and stay safe on the road.