INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Bob Pitcher VP, State Laws American Trucking Associations Together We’ve Made It Happen – A Celebration of 30 Years of IFTA THE INDUSTRY PERSPECTIVE

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust First, a little history… 30 Years Ago – Fuel Use Taxes Are a Crisis for the Trucking Industry: Non-uniform Burdensome Expensive to Administer and Comply With

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Non-Uniformity: Vehicles Registration Credentials Bonds Leases Tax Reports Credits & Refunds Audit & Administration

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Vehicles Reported > all commercial vehicles > 2 axles > 7,000 lbs. empty wt. > 10,000 lbs. empty wt. > 18,000 lbs. GVW or 7,500 lbs. empty wt. > 16,000 lbs. GVW > 30 gallon fuel tank capacity & at least 16 other definitions

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Registration Annual, biennial, or permanent One-time fees per fleet Annual fees per fleet Annual fees per vehicle Licenses for each place of business Renewable in October, December, January, March, April, or July Vehicle-specific cab cards Account nos. on vehicle

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Credentials (DECALS!) 1 per vehicle – or 2? On left side, right side – or front? Display dates? Annual, biennial – or permanent? Fees? YOU BETCHA! Charged by 22 states –TOTAL ANNUAL FEES PER TRUCK: $331.70

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Bonds Required by 19 states Various amounts and limits Required for refunds in c. 10 more states Alternative security rarely allowed

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Leases Who’s responsible for reporting? – Lessee? – Lessor? – Party buying fuel? – Vehicle operator? – Up to parties? – State permission needed? – Depend on term of lease? Copy required in vehicle?

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Tax Reports Frequency: monthly, quarterly, annually Due date: 20 th, 25 th, 30 th, last of month Postmark honored? Format Computation of tax Vehicles covered? Formula? State MPGs? Individual vehicle MPGs? Supporting documentation required Payment in certified funds

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Credits & Refunds Do credits carry over? How long? Refunds available? Minimum amount? Audit first? Documentation? Other restrictions?

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Audit & Admin. Record requirements – Official fuel receipts – Original documents Frequent changes in requirements Rules inaccessible to taxpayers Multiple audits under different rules LOTS of Gotchas

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Fuel Use Taxes in 1983 Non-uniform ?Definitely Burdensome ? For carriers of all sizes Expensive ?US DOT: $1 billion a year in administrative costs for motor carriers

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust IFTA First implemented members Redrafted per NGA members Required by ISTEA members ISTEA deadline 1996 IFTA Recodified Today 58 members

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Lonette Turner CEO/CFO International Fuel Tax Association, Inc Together We’ve Made It Happen – A Celebration of 30 Years of IFTA THE JURISDICTION AND IFTA, INC. PERSPECTIVES

Jurisdiction IFTA Implementation

NUMBER OF LICENSEES 2003 and 2013 based on Annual Reports Filed. Renewals would be approximately the same.

NUMBER OF DECALS Assuming 10 QMVs per carrier and 2 decals per QMV

NUMBER OF TAX RETURNS PROCESSED Assuming 4 quarterly returns filed.

Jurisdictions – Fully Participating In Clearinghouse

What Did The Clearinghouse Mean for the Participating Members?

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust Fewer licenses and decals to issue Fewer tax returns to process More audits completed (other jurisdictions auditing on your behalf) Decrease in costs to process (for both personnel and other administrative costs) Open communication with other jurisdictions Program is reviewed on a regular basis Summary of Benefits (Some of Them)

INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust