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A Short History of the IFTA

A Short History of the IFTA

If your trucking service in Indiana crosses various state lines to deliver shipment to clients, then you certainly should have heard of the International Fuel Tax Agreement or IFTA. It is mandatory for businesses like yours that operate in multiple states to apply for and obtain IFTA decals or stickers for your fleet.

The IFTA mandates each carrier to submit one quarterly tax return only specifying its fleet’s usage of fuel. This tax return can be submitted to the relevant government agency or trucking authority in its home state.

Up until 1983, each carrier would have to apply for tax permits from the authority in each state they operate in for each truck in its fleet. The permit and stickers can only be applied for in designated Ports of Entry in each state.

This arrangement is tedious and expensive. As a result, in 1983, representatives of the trucking industry and the government lobbied for a more centralized method of paying for and documenting fuel taxes. The result, of course, is the passage of the IFTA into law.

The IFTA’s regulations make it a complement to the International Registration Plan or IRP which was passed into law in 1973. The latter plan centralizes the registration of motor vehicles across the United States, the District of Columbia, and Canada. The Plan allows carriers to register vehicles only in one state, and other states and jurisdictions under the agreement will recognize the documentation.

If you need help applying for IFTA decals as well as license plates in Crestwood, Illinois, don’t hesitate to contact Plates and Permits Trucking Services. We take pride in our smooth and steady service we render to our clients.

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