Prepare Yourself - 2nd Quarter Tax Deadlines

Tax season is officially ramping up with deadlines seemingly around every corner. In addition to the beginning of the new HVUT season, there are several other important tax dates in July that you should be aware of. Come July 31, IFTA taxes are due, as are special use taxes for the states of New York, Oregon, New Mexico, and Kentucky. So save yourself a major headache come the end of July by knowing what you need to pay and when.

IFTA Tax Filing

IFTA filing, as you may or may not already know, must be done every quarter. The quarter ends on June 30, and the filing deadline is July 31. The best way to simplify this process is to prepare yourself.

The most important aspect of preparation is keeping track of your mileage. Whether you use manual trip sheets, GPS, or electronic trip sheets, you will need to have that information not only for your quarterly IFTA return, but also on file in case you are ever audited by your base jurisdiction. You’ll also need your fuel receipts so you know exactly how many gallons of fuel were purchased in each state. 

Other Quarterly Use Taxes

In addition to the IFTA deadline, July 31 is also the deadline for several different state use taxes. The states that have special use taxes are:

• Kentucky- Kentucky requires all commercial vehicles with a gross weight of 60,000 pounds or more traveling either into or through Kentucky to be registered with the state. Once registered, drivers will receive a KYU number and are then required to file a quarterly return and pay mileage taxes to the state of Kentucky. If you are only traveling through the state for one particular trip, temporary permits can also be obtained. 

• Oregon- All commercial carriers with a gross weight of 26,000 lbs or more must obtain a temporary permit to travel through or into Oregon. However, Oregon does not belong to the International Fuel Tax Agreement, although a proper tax permit is still necessary for entry into the state. Carriers that enter without proper documentation will face heavy fines. Oregon also requires that all new entrants become bonded before permanent credentials are issued. Bonds must be placed by a surety company or posted with cash. The size of the fleet is what determines the amount of the bond.

• New Mexico- All commercial vehicles with a gross weight over 26,000 pounds are required to be registered with the state before traveling in or through New Mexico. If you are not already registered, entrance can be paid at the port. Once a weight distance account has been established for you in New Mexico, you are then required to file quarterly reports and pay tax on the mileage you travel. 

• New York- New York requires carriers operating motor vehicles that weight 18,000 lbs or more to register and obtain NYHUT, or New York Heavy Vehicle Use Tax credentials. Once you have a NYHUT account established, you must then file and pay mileage tax every quarter. 

At TSNAmerica, we’ll not only help answer any questions you have about any of these taxes, but we’ll help file them for you. Just give us a call at 803.386.0320 or email us a service request to support@TSNAmerica.com. We also offer an abundance of other services for truckers, and you can find a full list of them here.

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Obtaining Your Own Trucking Authority

You will need the authority itself, apportioned license plate and IFTA account. To obtain your authority, you will need a USDOT Number and the type of cargo you will be hauling. Every new company that applies for a DOT number has to undergo a safety audit. Every driver will have to have a driver qualification file, complete pre-employment drug testing and enroll in a random drug testing pool. Previous driving experience will have to be verified. Once you get the authority, you must display your company name and DOT number on the outside of the truck and you will be able to operate legally in all 48 continental states.

Through the International Registration Plan (IRP), you will obtain your apportioned license plate, which you will designate the states in which you will run in. The renewal process will vary from state to state.

The International Fuel Tax Agreement (IFTA), between the 48 contiguous States and 10 Canadian Provinces, where the member jurisdictions acts 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. IFTA tax Returns must be filed quarterly. Returns are due the last day of the month following the end of the calendar quarter. IFTA decals are renewed annually based on the calendar year.

Kentucky, New Mexico and New York have an additional weight-distance tax based on the number of miles you run in those states. Oregon doesn’t participate in IFTA, imposing instead a tax per trip in the state or issuing a permit to collect taxes. Kentucky issues a non-renewable KYU number that remains active and legal as long as you stay current with registrations and tax filings. New Mexico’s permit is annual on the calendar year and has to be renewed. New York issues NYHUT permits in a three-year series, and are up for renewal this year in 2012.

The Unified Carrier Registration (UCR) is required for any interstate carriers, freight forwarders, leasing companies and brokers based in the United States, Canada, and Mexico to register and submit an annual filing. Those registered under the UCR agreement are also subject to annual fees based on the total number of commercial vehicles operated by the company.

DOT is getting stricter so you will want to be aware of the rules and regulations and keep up with your records, registrations, taxes and log books.  As a premier processing agency, Truck Services of North America provides the services and tools to help start your business and keep it compliant. 

Let TSNA navigate your business through the maze of paperwork! Check out all our services at TSNAmerica.com. Don’t see what you are looking for?  No problem, simply fill out the Service Request Form and note the service you require in the message section and we will contact you for details.  Of course you can always email us at support@tsnamerica.com or call 803.386.0320. TSNA takes the paperwork out of your way.

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