MENT
COMPLIANCE MANUAL
October 2007 INTERNATIONAL FUEL TAX AGREEMENT
COMPLIANCE MANUAL
TABLE OF CONTENTS
I.
INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1
II.
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1
III.
INITIAL LICENSING PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3
IV.
IFTA CREDENTIALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 4
V.
ANNUAL RENEWAL PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 4
VI.
REPORTING REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5
VII.
REFUNDS-CREDITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 7
VIII.
ASSESSMENTS FOR FAILURE TO FILE REPORTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 7
IX.
LEASE AGREEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 7
X.
LICENSE CANCELLATIONS, SUSPENSION, REVOCATION, AND REINSTATEMENT . . . . . . . . Page 8
XI.
RECORD KEEPING REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 9
XII.
AUDIT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 11
XIII.
APPEAL PROCEDURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 12
XIV.
MEMBER JURISDICTION INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 12
APPENDIX A - TAXPAYER ASSISTANCE LOCATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 13
APPENDIX B - NORTH CAROLINA MOTOR FUELS TAX TEMPORARY TRIP PERMITS. . . . . . . . . . . . Page 15
APPENDIX C - INDIVIDUAL VEHICLE MILEAGE RECORD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 17
APPENDIX D - DECAL INVENTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 18
APPENDIX E - IFTA RETURN AND INSTRUCTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 19
APPENDIX F - BULK FUEL LOG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 23 I.
INTRODUCTION
The International Fuel Tax Agreement (IFTA) is a base jurisdiction fuel tax agreement. Upon application, the
carriers base jurisdiction will issue credentials (license and decals) which allow the IFTA licensee to travel in all
IFTA member jurisdictions.
The current IFTA membership consists of 48 states and the following Canadian provinces: Alberta, British Colum-
bia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, Quebec, and
Saskatchewan.
North Carolina is your base jurisdiction for IFTA licensing and reporting if:
1.
You have a qualified motor vehicle licensed with the North Carolina Division
of Motor Vehicles;
2.
You maintain the operational control and records for qualified motor vehicles
in North Carolina or can make those records available in North Carolina;
3.
You have qualified motor vehicles which actually travel on North Carolina
highways; AND
4.
You operate in at least one other IFTA jurisdiction.
The IFTA license offers several benefits to the inter-jurisdictional motor carrier. These benefits include one
application, one set of credentials for each qualified vehicle, one quarterly tax return which reflects the net tax or
refund due, and one audit in most circumstances. The advantages all lead to cost and time savings for the inter-
jurisdictional carrier.
IFTA carriers that operate in non-IFTA jurisdictions must continue to follow the procedures and file the returns
required by the statutes and regulations of those non-IFTA jurisdictions.
Carriers should contact the motor carrier unit in each jurisdiction they travel to ensure compliance with specific
requirements that are in addition to the IFTA agreement. Examples of requirements that are not specified in the
IFTA agreement include apportioned license plates, oversize/overweight permits, single state registration permits,
and weight distance taxes.
This manual will explain in further detail the application for credentials, licensing, reporting, record keeping
requirements, and audit procedures.
II.
DEFINITIONS
Audit means a physical examination of the records and source documents supporting the licensees quarterly tax
returns.
Axle means an assembly of a vehicle consisting of two (2) or more wheels whose centers are in one horizontal
plane by means of which a portion of the weight of a vehicle and its load, if any, is continually transmitted to the
roadway.
Base Jurisdiction means the member jurisdiction where qualified motor vehicles are based for vehicle
registration purposes and:
1. Where operational control and operational records of the licensees qualified
motor vehicles are maintained or can be made available; and
Page 1 2. Where some mileage is accrued by qualified motor vehicles within the fleet.
The Commissioners of two (2) or more affected jurisdictions may allow the consolidation of several fleets which
would otherwise be based in two (2) or more jurisdictions.
Carrier means a person who operates or causes to be operated a qualified motor vehicle on any highway in North
Carolina.
Commissioner means the official designated by the jurisdiction to be responsible for administration of IFTA.
Department means the North Carolina Department of Revenue.
Division means the Motor Fuels Tax Division.
Gross Vehicle Weight means the unladen (empty) weight of a vehicle (tractor and trailer) plus the weight of any
load thereon.
Jurisdiction means a state of the United States, the District of Columbia, or a Province or Territory of Canada.
Lessee means the party acquiring the use of equipment with or without a driver from another.
Lessor means the party granting the use of equipment with or without a driver to another.
Licensee means a person who holds an uncanceled license issued by the base jurisdiction.
Member Jurisdiction means a jurisdiction which is a member of the International Fuel Tax Agreement.
Motor Fuels means all fuels used for the generation of power for propulsion of qualified motor vehicles.
Qualified Motor Vehicle means a motor vehicle used, designed, or maintained for the transportation of person or
property and:
1. Having two (2) axles and a gross vehicle weight or registered gross vehicle weight
exceeding twenty-six thousand (26,000) pounds; or
2. Having three (3) or more axles regardless of weight; or
3. Is used in combination when the weight of such combination exceeds twenty-six
thousand (26,000) pounds gross vehicle weight.
NOTE: The number of axles applies only to the power unit of the vehicle.
Exempt vehicles include recreational vehicles, special mobile equipment, and vehicles owned by the United
States Government, the State of North Carolina, or its political subdivisions. Special mobile equipment, vehicles
owned by the United States Government, and vehicles owned by the State of North Carolina or its political subdi-
visions that operate in other IFTA jurisdictions may be subject to the fuel tax reporting laws of those jurisdictions.
Recreational Vehicle means vehicles such as motor homes, pickup trucks with attached campers and buses
when used exclusively for personal pleasure by an individual. In order to qualify as a recreational vehicle, the
vehicle shall not be used in connection with any business endeavor.
Registration means the qualification of motor vehicles normally associated with a prepayment of licensing fees
for the privilege of using the highway; and, the issuance of a license plate and a registration card or temporary
registration card containing owner and vehicle information.
Page 2 Registered Gross Vehicle Weight means the weight at which a qualified motor vehicle is registered (plated)
with the North Carolina Division of Motor Vehicles or a jurisdiction other than North Carolina.
Reporting Period means a period of time consistent with the calendar periods of January 1 through March 31;
April 1 through June 30; July 1 through September 30; and October 1 through December 31.
Total Distance means all miles or kilometers traveled during the reporting period by every qualified motor vehicle
in the licensees fleet, regardless of whether the miles or kilometers are considered taxable or nontaxable by a
jurisdiction.
III.
INITIAL LICENSING PROCEDURES
A. IFTA License Application Procedures
Any motor carrier based in North Carolina and operating one (1) or more qualified motor vehicles in at least one (1)
other IFTA member jurisdiction should file an Application for License and Decals in North Carolina. If a carrier
qualifies as an IFTA licensee but does not wish to participate in the IFTA program, trip permits must be obtained to
travel through member jurisdictions according to the regulations of each member jurisdiction.
A carrier may request an Application for License and Decals (Form Gas-1274) by contactingthe Motor Fuels
Tax Division (Division) offices located in Raleigh, Greensboro, or Charlotte, or by call