What Are Non-Taxable and Exempt IFTA Miles?

Now that the IFTA first quarter has officially come and gone, it’s time to start getting those IFTA reports together. And when you’re doing those reports, figuring out which miles are taxable and which aren’t can be a daunting task.

So check out the guide below to non-taxable IFTA miles to see which of your miles are going to cost you and which miles you don’t need to report!

What Do I Need on my IFTA Report?

On your IFTA report, you will need to include the following information:

• Total Miles- The total miles traveled in each jurisdiction for each fuel type
• Total Taxable Miles- Total miles traveled in each jurisdiction minus the non-taxable miles
• Total Gallons Consumed- Divide your total taxable mileage by your estimated mpg 
• Total Gallons Purchased- Enter the total gallons purchased for all qualified motor vehicles
• Net Taxable Gallons- The difference between net gallons consumed and net gallons purchased 

What Are Non-Taxable IFTA Miles?

So what are non-taxable IFTA miles exactly? Well, non-taxable miles are miles that you drove that do not need to be included on your IFTA report. Why do these miles not need to be included on your report? Take a look.

Do you use fuel permits at all when driving? Well if you do, any mileage driven while using fuel permits is not taxable. Now, you’ll still want to include any mileage driven in your total miles section, it just won’t be included in the taxable miles section for the jurisdiction where you purchased the permit.

But what about toll miles? Are toll miles taxable? Another good question, and one would think (incorrectly, that is) that toll miles wouldn’t be taxable, since you’re basically already paying taxes on those miles, right? Wrong. Even though you have to pay to drive on toll roads, the amount you pay doesn't go towards fuel taxes. Those fees are just paid in exchange for using a particular road. So make sure you're including all toll mileage in your taxable miles.

Some other states have other rules for specific areas, vehicles, or roads that are non-taxable areas, and remember, if a state doesn’t participate in IFTA, those miles are non-taxable, too!

So hopefully now you know exactly which miles you need to include as taxable on your IFTA report, and which miles you don’t. But if you have any other questions or are still a bit confused, just give us a call at 803.386.0320 and we’ll help you out. And don’t forget, we can file your IFTA reports for you!

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Did You File 1st Quarter Returns?

If you have not yet filed your 1st Quarter KYU, NY HUT, Oregon Weight-Mile or New Mexico Weight Distance returns, you missed the deadline! You want file as soon as possible to avoid further penalties and interest.

At Truck Services of North America, we make it simple by preparing and filing your quarterly returns for you, so you can avoid further penalties. TSNA takes the paperwork out of your way.  Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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1st Quarter NY HUT, KYU, New Mexico & Oregon Weight Distance Deadline

Reminder that all 1st Quarter NY HUT, KYU, New Mexico and Oregon Weight Distance Tax Returns are due next Tuesday, April 30, 2013.

New York Highway Use Tax (NYHUT) 

• Carriers operating certain commercial motor vehicles that weigh 18,000 lbs or greater in New York are required to register and obtain NYHUT tax credentials. Once a NYHUT account has been established, carriers must file and pay mileage tax on a quarterly basis.  

Kentucky Use Tax (KYU Number) 

• All commercial motor vehicles (except buses) with a gross weight of 60,000 lbs and over traveling into or through Kentucky must be registered with the state. Carriers with an active KYU Number are then required to file a quarterly return and pay mileage taxes to Kentucky. New qualifying vehicles must be listed with Kentucky prior to the vehicle entering the state. Temporary permits are also available.

New Mexico Weight Distance Tax 

• All commercial motor vehicles with a gross weight in excess of 26,000 lbs. must be registered with the state before traveling into or through New Mexico. Entrance can be paid at the port if not registered; however, it is not cost effective to pay at the port unless you travel through New Mexico only once or twice per year. Once a Weight Distance Tax account in New Mexico is established quarterly reports must be filed and mileage tax paid.

Oregon Weight-Mile Tax 

• All commercial carriers with a gross vehicle weight in excess of 26,001 lbs. must obtain a temporary or annual permit to travel into or through Oregon. Oregon does not belong to the International Fuel Tax Agreement; however, a proper tax permit must be obtained before entering this state. Heavy fines are imposed on carriers entering into Oregon without the proper credentials. 
• Oregon requires all new entrants to become bonded before permanent credentials are issued. Bonds may be placed by a Surety Company or posted with cash. The size of your fleet will determine the amount of the bond required.

As a premier processing agency, Truck Services of North America can assist with your NY HUT, KYU, New Mexico and Oregon Weight Distance Taxes.  TSNA takes the paperwork out of your way. Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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2013 IFTA, NY HUT & KYU 1st Quarter Filing Deadline Approaching!

The 1st Quarter Filing Period for IFTA (International Fuel Tax Agreement), KYU (Kentucky Use Tax), New Mexico Weight Distance Tax, NY HUT (New York Highway Use Tax) and Oregon Weight-Mile Tax is now open. We want to remind you that the deadline for filing is April 30, 2013 and we encourage you not to wait until the last minute to file.

IFTA is the International Fuel Tax Agreement between the 48 contiguous States and 10 Canadian Provinces, where the member jurisdictions act cooperatively to administer and collect motor fuel use taxes.

The purpose of IFTA is to establish and maintain the concept of one fuel use license and one administering base jurisdiction for each license holder (licensee). Under IFTA, you only have to report to one state and the state allocate the fuel tax payments.  For more details see http://www.iftach.org.

We are halfway through the filing period for 1st quarter.  The fuel taxes are due quarterly and April 30th is the deadline for the 1st quarter. (January, February, March).

What you need to file:

• Mileage log 
• Fuel Receipts
• Any IFTA correspondences pertaining to your account (if applicable) 

Late Filing or Not Filing could result in the following:

• IFTA filing (late fee) plus interest (if applicable) 
• Possible suspension of IFTA license 
• Possibility of having IRP/Apportioned Plate account affected
• Citation from DOT if caught operating on a delinquent and or suspending IFTA license 
• Threat of having your entire transport operation shut down 

The IFTA filing process may be vary slightly depending on your base jurisdiction state.  

New York Highway Use Tax (NYHUT) 

• Carriers operating certain commercial motor vehicles that weigh 18,000 lbs or greater in New York are required to register and obtain NYHUT tax credentials. Once a NYHUT account has been established, carriers must file and pay mileage tax on a quarterly basis.  

Kentucky Use Tax (KYU Number)

• All commercial motor vehicles (except buses) with a gross weight of 60,000 lbs and over traveling into or through Kentucky must be registered with the state. Carriers with an active KYU Number are then required to file a quarterly return and pay mileage taxes to Kentucky. New qualifying vehicles must be listed with Kentucky prior to the vehicle entering the state. Temporary permits are also available. 

New Mexico Weight Distance Tax 

• All commercial motor vehicles with a gross weight in excess of 26,000 lbs. must be registered with the state before traveling into or through New Mexico. Entrance can be paid at the port if not registered; however, it is not cost effective to pay at the port unless you travel through New Mexico only once or twice per year. Once a Weight Distance Tax account in New Mexico is established quarterly reports must be filed and mileage tax paid.

Oregon Weight-Mile Tax 

• All commercial carriers with a gross vehicle weight in excess of 26,001 lbs. must obtain a temporary or annual permit to travel into or through Oregon. Oregon does not belong to the International Fuel Tax Agreement; however, a proper tax permit must be obtained before entering this state. Heavy fines are imposed on carriers entering into Oregon without the proper credentials. 
• Oregon requires all new entrants to become bonded before permanent credential are issued. Bonds may be placed by a Surety Company or posted with cash. The size of your fleet will determine the amount of the bond required.

If you are new and not sure what to do or would rather not have to take the time to file your IFTA, NY HUT or KYU contact Truck Services of North America today. If you would like us to take care your IFTA, we will need copies of your mileage logs and fuel receipts into our office by April 20th, to ensure the paperwork is processed by the April 30, 2013 deadline.

As a premier processing agency, Truck Services of North America can assist with your IFTA,  NY HUT, KYU, New Mexico and Oregon Weight Distance Taxes.  TSNA takes the paperwork out of you.  Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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