IFTA - International Fuel Tax Agreement

IFTA is the International Fuel Tax Agreement and is a tax collection agreement by and among the 48 contiguous States and the 10 Canadian Provinces bordering the US, in which motor fuels use taxation laws are uniform with respect to qualified motor vehicles operated in more than one member jurisdiction.

Should I register for IFTA in my state?

A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property having:

• Two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or
• Having three or more axles regardless of weight; or
• Is used in combination, when the weight of such combination exceeds 26,000 pounds, or 11,797 kilograms gross vehicle or registered gross vehicle weight.

Qualified Motor Vehicle does not include recreational vehicles unless they are used in conjunction with any business endeavor. Recreational vehicles are vehicles such as motor homes, pickup trucks with attached campers and buses when used exclusively for personal pleasure by an individual.

To apply:

Submit the completed application (Form MV2667) along with proof of the principal place of business to:

Wisconsin Department of Transportation
Motor Carrier Registrations
PO Box 7979.
Madison, WI 53707-7979.

For Overnight mailing (FedEx/UPS)
Wisconsin Department of Transportation
4802 Sheboygan Ave. Room 151.
Madison, WI 53705.

Applications will be processed within 3-5 business days once received. There is a $15 application fee, $3 license fee and $2 fee for each set of decals. You will need one set per qualified vehicle.

What credentials will I receive?

One IFTA license and a set of decals will be assigned to each IFTA licensee. A photocopy of the license must be maintained in the cab of each motor vehicle. The original license issued by the bureau should be retained at your business address. The IFTA license is valid for the calendar year January 1 through December 31.

Quarterly Returns

Due Dates:
The DUE DATE for the quarterly tax return is the last day of the month immediately following the last day of the quarter for which the return is being filed. If the due date falls on a weekend or State holiday, the due date is the next business day.

Tax Return Reporting Quarters	Due Date
January - March	April 30
April - June	July 31
July - September	October 31
October - December	January 31

Do I file a quarterly fuel tax report if I didn't run during the quarter?

Yes, a quarterly fuel tax return must be filed even if the no fuel was used. You submit a “zero” report.

What is the penalty and interest rate for filing a late quarterly fuel tax report?

Failure to file a return, filing a late return, or failure to remit any or all tax due will result in a penalty of $50.00 or 10% of the net tax due to all member jurisdictions, whichever is greater. Interest is computed on all delinquent taxes dues each jurisdiction at a rate of .4167% per month. Even if you have a net refund, interest still applies to each jurisdiction for any underpayment of fuels use tax to that jurisdiction and is calculated beginning the day after the due date of the return for each month, or fraction of a month, until paid.

How do I obtain a return?

The IFTA quarterly tax report will be sent to all IFTA licensees at least thirty (30) days before the due date. Failure to receive the quarterly tax report does not release the licensee from reporting obligations. Quarterly tax reports also may be obtained online or by calling the Department at (608) 266-9900. A quarterly tax report must be filed even if the licensee does not operate or purchase taxable fuel in any IFTA member jurisdiction in a particular quarter.

Renewals

Renewals are mailed out 3 months before expiration date.

Where can I get more information?

www.dot.wisconsin.gov/business/carriers/ifta.htm