STPS

All About IFTA Stickers

What is IFTA? Quick review:

IFTA stands for the International Fuel Tax Agreement. In short, IFTA needed to be made so that taxing all vehicle fuel for a truck driver who travels between different states can be more efficient and simple. Instead of using each state’s different way of taxing fuel, which wasted time and was very expensive, IFTA was enforced. The system is called the “pay now or pay later.” All truck drivers track their miles and the gallons of gas that they bought throughout the quarter. At the end of the fiscal quarter, the truck drivers will state how many 

gallons of gas they bought and how many miles they drove in each state on their fuel tax report. The average fuel mileage is applied to the number of miles that were traveled in each jurisdiction to determine tax liability. That amount is paid to the jurisdiction that issued their license. Transferring the funds to each state occurs after this step. With IFTA, all truckers need to have IFTA stickers. In this article we will focus on everything about IFTA stickers.

Why do you need IFTA stickers?

All truck drivers need an IFTA sticker to travel between different states in the US and some parts of Canada. IFTA isn’t included in Alaska and Hawaii. Before the simple way of tax collection and distribution thanks to IFTA, each state had its own fuel tax. Also, there was a tax permit needed for each state that each owner and fleet were required to have. 

Now you only need to report the mileage and your total fuel usage to your base jurisdiction for every quarterly report. Once you’re registered and you get the sticker, you can travel between states. You can pay online if you create an IFTA account. IFTA is important because it keeps the fuel cost taxes fair in every state that you travel in.

How can you get an IFTA sticker and where do you place it?

Getting an IFTA sticker is very simple. All you need to do is apply for a permit on any state or jurisdiction tax website. Once applied, IFTA stickers will be sent to you to be put on the trucks.

When you receive the two IFTA stickers you will put one on each side of the cab, near the door of the truck. To make sure that law enforcement will be able to see it, placing the stickers at eye level would be best.

Any fees or fines? 

In most states IFTA stickers are free but there are replacement sticker fees.

You can get a fine if you don’t have your IFTA stickers in the correct place or if you don’t have your IFTA license with you. If you underpay your taxes, fail to file, or file reports late then the IFTA legislation states has a penalty of 10% or $50 of the taxes owed.

IFTA reminders:

Be sure to remember to renew your license on time. IFTA licenses expire on December 31st. If you renew it on time, you will avoid fines.

You are required to keep your IFTA stickers on your truck for up to 3 years after they expire. Also, always keep your license on you.

Make sure you pay your IFTA taxes on time to avoid fees.

Contact your state’s IFTA department if you lose your IFTA permits or stickers

Do you still need to know more about how IFTA works? This article can tell you everything you need to know about it. 

Written by Tessa Braybrook

Tessa joined Superior Trucking Payroll Service in September 2022. She loves to write and make videos which made her a great asset to the team in her marketing position. 

Before working at Superior Trucking Payroll Service she worked in IT at GVSU which gave her the skills to problem-solve with customers over the phone.

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