If you`re a trucker or own a trucking business in Louisiana, you may be familiar with the International Fuel Tax Agreement (IFTA). IFTA is a cooperative agreement between the lower 48 states and 10 Canadian provinces that simplifies the reporting of fuel use by motor carriers operating in more than one jurisdiction.
Under IFTA, truckers must file quarterly fuel tax returns with their base jurisdiction, which is typically the state where they have established their business. The base jurisdiction then distributes the taxes to the other states or provinces where the trucker operated during the quarter.
In Louisiana, the Office of Motor Vehicles (OMV) administers IFTA and enforces compliance. To participate in IFTA, Louisiana-based truckers must meet certain requirements, such as having an active DOT number and an appropriate level of insurance coverage. They must also keep detailed records of their fuel purchases and mileage driven in each jurisdiction.
One of the benefits of IFTA is that it streamlines the fuel tax reporting process for truckers who operate in multiple states. Rather than having to file separate fuel tax returns for each state they operate in, they can file a single return with their base jurisdiction. This can save time and reduce paperwork.
However, IFTA compliance is important, as noncompliance can result in penalties and fines. The OMV conducts audits to ensure that truckers are accurately reporting their fuel use and mileage, and failure to comply can result in revocation of IFTA credentials and suspension of vehicle registrations.
In addition to IFTA, Louisiana also imposes a state fuel tax on diesel and gasoline. The current rate for diesel is 20 cents per gallon, while the rate for gasoline is 20.01 cents per gallon. These taxes are used to fund transportation infrastructure and related projects.
Overall, the International Fuel Tax Agreement is an important aspect of trucking in Louisiana, as it simplifies the reporting of fuel use and reduces paperwork for truckers operating across state lines. While compliance is important, meeting the requirements of IFTA can ultimately save time and hassle for truckers and their businesses.