IFTA - International Fuel Tax Agreement
A qualified motor vehicle operating in more than one jurisdictions must file the International Fuel Tax Agreement (IFTA) on a quarterly basis every year. The motor carriers must have a weight exceeding 26,000 lbs with axles as per the legal configurations. This tax collection agreement was initiated by and among
48 contiguous States and the 10 Canadian Provinces bordering the US.
Should I register for IFTA in my state?
Motor carriers that are used, designed or maintained to transport people and property from one jurisdiction to others must register for International fuel tax agreement (IFTA) at its base jurisdiction. For recreational vehicles like motor homes, pickup trucks etc. does not come under fuel tax agreement unless it is used for any business purposes.
A qualifying vehicle must have the following:
- No more than 2 axles with a gross weight (or registered) exceeding 26,000 lbs or 11,797 kg.
- 3 or more than 3 axles regardless of weight limitations.
- Exceeding 26,000 lbs when used in combination.
To apply:
In order to obtain an IFTA license for Arizona, you must submit a completed application along with the proof of the principal place of business to the below-given address.
Motor Carrier Licensing UnitMotor Vehicle Division
P.O. Box 2100
MD 527M
Phoenix, AZ 85001
Pay $10 filing fee for IFTA license and get one set per qualified vehicle (one license and two decals).
Start preparing your IFTA quarterly fuel report in minutes with ExpressIFTA. This e-file solution enables you to generate your IFTA report with no manual tax calculations. Once you enter the required details about the vehicle detail and business you form will be generated, validated and then transmitted. You can receive your license and decals in 3-4 business days.
Start Your IFTA ReportWhat credentials will I receive?
After the state approves your return, you will receive an IFTA license and a set of decals for your qualified vehicle. As an authorized licensee, you must always carry a duplicate license in the vehicle whenever you travel to a member jurisdiction. Make sure to keep the original at the business place. The IFTA license will be valid until December 31st from the day you purchased.
Quarterly Returns
Due Dates:
You must report your fuel purchases and mileages within one month after the end of every quarter. The due date usually falls on the last day of the month that comes after the quarter period (i.e. if the quarter ends in March, you must report the return within the end of April). If at any case, the due date comes on legal holidays or weekends then the next business day will be the final due date.
Reporting Quarter | Reporting Period | Due Date |
---|---|---|
1st | January - March | April 30 |
2nd | April - June | July 31 |
3rd | July - September | October 31 |
4th | October - December | January 31 |
Do I need to file a quarterly fuel tax report even if I didn't run during the quarter?
If you own a qualifying vehicle you must file a quarterly fuel tax report every year (whether you run your vehicle during the quarter or not). Choose a “zero” report to submit.
What is the penalty and interest rate for filing a late quarterly fuel tax report?
Late filing, failure to file a return or remit tax due will owe you a penalty of $50.00 or 10% of the total tax due to whichever member jurisdiction you have traveled during the quarter. An interest of .4167% per month is calculated and applies to each jurisdiction for any underpayment of fuels use tax even if you have a net refund. The interest can increase for each month, or fraction of a month until you pay the tax.
Renewals are mailed out in early October. Can be delivered, mailed or done online.
How do I obtain a return?
You can obtain your IFTA quarterly return by filing online or can mail a completed report to the state. The state will take 3-4 days to produce your IFTA license and decals. A quarterly tax report must be filed for every qualifying vehicle on a quarterly basis even if the licensee does not operate the vehicle during the quarter period.
Renewals
Renewals can be done through mail, in person or online. You must renew your license and permit before December 31st. The renewal processing fee is $10 for IFTA license in Arizona.
IFTA Rates For 3rd Quarter 2021
State / Province | Gasoline | Special Diesel | Gasohol | Propane | LNG | CNG | Ethanol | Methanol | E-85 | M-85 | A55 | Biodiesel | Electricity | Hydrogen | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARIZONA (AZ) #8 | U.S. Can. |
0.1800 0.0589 |
0.2600 0.0850 |
0.1800 0.0589 |
0.1800 0.0589 |
0.1800 0.0589 |
0.2600 0.0580 |
Reference: https://www.iftach.org/taxmatrix4/choose_tableqnew.php