1. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 Bob Pitcher VP, State Laws American Trucking Associations 703-838-7939 bpitcher@trucking.org Together We’ve Made It Happen – A Celebration of 30 Years of IFTA THE INDUSTRY PERSPECTIVE

2. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 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

3. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 Non-Uniformity: Vehicles Registration Credentials Bonds Leases Tax Reports Credits & Refunds Audit & Administration

4. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 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

5. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 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

6. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 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

7. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013

8. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 Bonds Required by 19 states Various amounts and limits Required for refunds in c. 10 more states Alternative security rarely allowed

9. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 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?

10. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 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

11. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 Credits & Refunds Do credits carry over? How long? Refunds available? Minimum amount? Audit first? Documentation? Other restrictions?

12. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 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

13. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 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

14. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 IFTA First implemented 19833 members Redrafted per NGA 19864 members Required by ISTEA 1991 14 members ISTEA deadline 1996 IFTA Recodified 1995-98 Today 58 members

15. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 Lonette Turner CEO/CFO International Fuel Tax Association, Inc. 480.839.4382 lturner@iftach.org Together We’ve Made It Happen – A Celebration of 30 Years of IFTA THE JURISDICTION AND IFTA, INC. PERSPECTIVES

16. Jurisdiction IFTA Implementation 3 5 24 422 58

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

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

19. NUMBER OF TAX RETURNS PROCESSED Assuming 4 quarterly returns filed.

20. Jurisdictions – Fully Participating In Clearinghouse 53 1158 5 35 43

21. What Did The Clearinghouse Mean for the Participating Members?

22. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013

33. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013 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)

34. INTERNATIONAL FUEL TAX AGREEMENT Celebrating 30 Years of Cooperation and Trust 1983 - 2013