Michigan International Fuel Tax Agreement
Prior to IFTA, each state had its own fuel tax system and a truck of tax authorizations needed for each state in which it worked. Most states have created ports of entry to issue permits and tax collection, costing the lives of the truck industry and the states. Pre-IFTA trucks in interstate commerce had special plates („bingo sheets“) with each state`s authorization sticker affixed. This has been ineffective and has proven costly to manage for each state. The International Fuel Tax Agreement (FITA) is an agreement between the 48 lower U.S. states and Canadian provinces to facilitate the reporting of fuel consumption by fuel companies operating in more than one country.  Alaska, Hawaii and the Canadian territories are not required to participate, but all of Canada and Alaska do. An IFTA-owned executing carrier receives an IFTA licence and two decals for each qualified vehicle it operates. The carrier provides a quarterly fuel tax return. This report is used to determine the tax or net refund due and to redistribute taxes from collector states to the states due. Simply put, the IFTA works as a „pay numbers now or later“ system. When commercial vehicles purchase fuel, all taxes paid on fuel are credited to the licensee`s account.
At the end of the business quarter, the licensee finalizes his fuel tax return, lists all miles flowed in all participating countries and lists all gallons purchased. Then, the average fuel power is applied to miles travelled to determine each country`s tax debt. Three states – Kentucky, New Mexico and New York – have weight taxes, in addition to the normal fuel tax. Oregon has only a weight tax. Each amount of fuel taxes (or refunds) due is then paid (or obtained) to the basic jurisdiction that issued the licence. The Member States then take care of the corresponding transfer of funds. Audits are carried out only by the base state and fuel obligations are rarely required. IFTA, Inc. announced the inclusion of hydrogen and electricity as fuel in the tax rates of IFTA (headquartered in www.iftach.org). Although it is in the early stages and many jurisdictions have not set a tax rate for these types of fuel, airlines using hydrogen or electricity in power plants must report purchases of these fuels on their IFTA yields in gallon equivalent. Touch the base with the Michigan ITFA office.
The telephone number is 517-636-4580; The email is IFTA_Licensing@michigan.gov fax is 517-636-4593. The IFTA Processing Consortium (IPC) is a web application used by the State of Michigan to help Michigan-based intergovernmental airlines license IFTA, quarterly fuel tax returns, IFTA sticker orders and IFTA temporary sticker permits. If your account has been authorized for IFTA in the past calendar year or is currently licensed and you know your login information, use the link below to access your Michigan IFTA account. If you are new to the HGV industry, you have a lot of questions about the international fuel tax agreement.