Every industry has certain standards to which members must adhere. The trucking industry is no exception—the International Fuel Tax Agreement (IFTA) regulates much of the reporting and processes that are involved in the trucking field. The IFTA system is designed to standardize the rules and regulations across states to maintain and improve the industry for trucking services in Minnesota and throughout the country.
Of course, to adhere to the standards, one must know what they are. Here’s the scoop on the basic rules and regulations of the IFTA in Minnesota and beyond. If you have any questions, feel free to contact your trucking service in Minnesota for more information:
- Registration: Does your business involve commerce in multiple states? If so, it might be difficult to know which state should be labeled as your base of operations. The good news is that the IFTA does not have standards that dictate which state you choose. Simply contact your local register to maintain registration and mileage records with each state in which you have a place of business.
- Regulations: To qualify for fuel tax reporting with the IFTA, vehicles must adhere to a strict set of standards. The vehicle must travel in at least two IFTA jurisdictions. It must weigh at least 26,000 pounds or have at least three axles (or be a bus with a passenger load of 20 or greater). The vehicle must also use propane, diesel or natural gas.
- Renewals: Once approved, every qualified vehicle must be licensed annually. For new vehicles, contact your local DMV to apply for a license. Once licensed, the IFTA will provide renewal applications each year. Approved vehicles will receive decals which must be placed on each door to signify licensure.
- Reporting: Fuel tax reports are required four times each year. These reports must include all of your qualified vehicles. When these are filed, payment must be made for any taxes due. These payments are made to your Secretary of State. If the reports indicate you have overpaid, you will receive a refund or credit for future payments.
- Receipts: With your quarterly report, you must submit receipts. Each receipt must provide the date of purchase, seller’s information, purchaser’s information, fuel type, vehicle registration, sale amount and the number of gallons purchased.
- Records: In addition to your quarterly reports, you must keep monthly records that reflect all individual vehicle mileage. These reports should cover all fuel purchased and mileage traveled. Summarize each vehicle’s totals monthly. These records should be available for review if needed to verify your receipts and reporting.
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Do you need more information about the IFTA in Minnesota and its rules and regulations? Contact your local trucking service in Minnesota for expert input. The staff at K-Way Express, Inc. creates customized transportation solutions for companies of all sizes. We are a fully licensed transportation brokerage company with over 700 carriers at our fingertips that mirror our customer service standards. Whether you have questions or need dry vans, refrigerated trailers, flat-beds or specialized equipment, K-Way Express, Inc. can fill your needs. Reach out to us today to learn more!