INTERNATIONAL FUEL TAX AGREEMENT Trucking Manual OUR MISSION PROVIDING HIGHWAY SAFETY AND SECURITY THROUGH EXCELLENCE IN SERVICE, EDUCATION, AND ENFORCEMENT OUR VISION A SAFER FLORIDA! FLORIDA IFTA TRUCKING MANUAL HSMV 85920 – (Rev. 7/08) INTERNATIONAL FUEL TAX AGREEMENT TRUCKING MANUAL TABLE OF CONTENTS Introduction to Florida’s International Fuel Tax Agreement -------------------------- 1 Motor Carrier Services E-Commerce ------------------------------------------------------ 1 Advantages of IFTA Registration ----------------------------------------------------------- 2 Base State Requirements--------------------------------------------------------------------- 2 IFTA Vehicle Qualifications------------------------------------------------------------------- 2 Exempt Vehicles -------------------------------------------------------------------------------- 2 IFTA Member Jurisdictions ------------------------------------------------------------------- 2 Application Requirements for IFTA --------------------------------------------------------- 2-3 • Example of Application for International Fuel Tax Agreement (IFTA) (HSMV 85008) --------------- 4-6 Qualified IFTA Licensee----------------------------------------------------------------------- 7 IFTA Account Number ------------------------------------------------------------------------- 7 IFTA Fees and Credentials ------------------------------------------------------------------- 7-8 • Example of IFTA License -------------------------------------------------------- 8 IFTA Decals -------------------------------------------------------------------------------------- 9-10 • Example of IFTA Decal ---------------------------------------------------------- 9 • Example of IFTA Decal Order Form ------------------------------------------ 10 Lease and Rental Agreements -------------------------------------------------------------- 11 Enforcement Requirements ------------------------------------------------------------------ 11 Bankruptcy---------------------------------------------------------------------------------------- 11 Tax Reporting Requirements ---------------------------------------------------------------- 11-12 • IFTA Tax Return (front and back pages) (HSMV 85921) ---------------- 13-14 • Florida Schedule 1 (pages 1 and 2) (HSMV 85922) ---------------------- 15-16 Penalty and Interest ---------------------------------------------------------------------------- 17 Exempt Fuel Use-------------------------------------------------------------------------------- 17 Tax Exempt Miles ------------------------------------------------------------------------------- 17 Refunds and Credits --------------------------------------------------------------------------- 17 Discontinuance or Transfer of Business -------------------------------------------------- 18 Change of Address Requirement ----------------------------------------------------------- 18 License Cancellation --------------------------------------------------------------------------- 18 License Suspension and Revocation ------------------------------------------------------ 18-19 License Reinstatement ------------------------------------------------------------------------ 19 Temporary Registration ----------------------------------------------------------------------- 19 • Wire Service Companies Authorized to Sell Permits --------------------- 19 Record Keeping Requirements-------------------------------------------------------------- 19-21 • Mileage Records------------------------------------------------------------------- 19 • Trip Reports------------------------------------------------------------------------- 20 • Fuel Receipts ----------------------------------------------------------------------- 20 • Fuel Types -------------------------------------------------------------------------- 20 • Acceptable Fuel Receipts or Invoices ---------------------------------------- 20 • Fuel Records Must Contain ----------------------------------------------------- 20-21 • Records Retention ---------------------------------------------------------------- 21 • Proper Forms for Maintaining Adequate Records ------------------------- 21 TOC - 1 of 2 Being Selected for an Audit ------------------------------------------------------------------ 21-22 • Notice of Audit---------------------------------------------------------------------- 21 • No Records?------------------------------------------------------------------------ 22 • Examples of Suggested Acceptable Forms for Record Keeping ------ 23-26 Most Common Errors/Problems Experienced by Carriers When Filing IFTA Tax Returns------------------------------ 27-28 Definitions----------------------------------------------------------------------------------------- 28-29 Addresses and Telephone Numbers ------------------------------------------------------- 30-31 • Florida Department of Highway Safety and Motor Vehicles • Bureau of Motor Carrier Services---------------------------------------------- 30 • Additional Specific Information ------------------------------------------------- 31 U.S. DOT------------------------------------------------------------------------ 31 FL DOT Motor Carrier Compliance HQ’s and Field Offices -------- 31 Hazardous Materials Enforcement---------------------------------------- 31 Highway Interdiction Program---------------------------------------------- 31 Commercial Motor Vehicle and Cargo Theft --------------------------- 31 FL DOT Oversize/Overweight Permits----------------------------------- 31 Live Stock and Hauler Permits--------------------------------------------- 31 Fuel Importation --------------------------------------------------------------- 31 Licensing ------------------------------------------------------------------------ 31 Import/Diversion Authorization Numbers-------------------------------- 31 Office of Florida’s Turnpike ------------------------------------------------- 31 Tallahassee Location of Internal Revenue Service ------------------- 31 Use of ComCheks ------------------------------------------------------------ 31 Commercial Driver Licenses ----------------------------------------------- 31 Change of Address Form HSMV 85041--------------------------------------------------- 32 IFTA Jurisdiction Information Back Cover Florida Trucking Information by Telephone & by Internet Back Cover TOC – 2 of 2 INTRODUCTION TO FLORIDA’S IFTA The purpose of this manual is to outline the steps involved in registration under the International Fuel Tax Agreement (IFTA). This Agreement among the states and the Canadian provinces simplifies the reporting of fuel taxes for interstate motor carriers. Upon application, the carrier’s base jurisdiction (see definition on page 28) will issue credentials (license and decals) which will allow the IFTA licensee to travel in all jurisdictions. Technical assistance and additional information pertaining to the International Fuel Tax Agreement can be obtained by contacting the Bureau of Motor Carrier Services as follows: Florida Department of Highway Safety and Motor Vehicles Division of Motor Vehicles - Bureau of Motor Carrier Services Neil Kirkman Building, MS-62 2900 Apalachee Parkway Tallahassee, Florida 32399-0626 Telephone (850) 617-3711 FAX (850) 617-5185 www.flhsmv.gov CROSS CREEK WALK-IN SERVICE CENTER Bureau of Motor Carrier Services 1214 Capital Circle, SE, Suite J Tallahassee, Florida 32301 Office hours at the Neil Kirkman Building are from 8:00 a.m. to 5:00 p.m., Monday through Friday. The bureau’s Cross Creek Service Center is open for walk-ins from 8:30 a.m. to 5:00 p.m., Monday through Friday. Even though we make every attempt to process walk-in applicants on the same day they request service, in some cases this may not be possible due to the number of walk-in applicants requesting service or due to the time of day or day of month. The Bureau of Motor Carrier Services is closed on Saturdays, Sundays, and all official state holidays. MOTOR CARRIER SERVICES E-COMMERCE The Division of Motor Vehicles, Bureau of Motor Carrier Services, now provides the ability to e-file your International Fuel Tax Agreement (IFTA) tax return, renew your IFTA and International Registration Plan (IRP) licenses, and process some IRP supplements online. To e-file, you must first obtain a login identification (ID) and a personal identification number (PIN #). If you are not already registered for e-filing with us, you may obtain the application online at www.flhsmv.gov. Just click “Online Services Full Services Menu”, and then click “Motor Carriers’ IFTA & IRP Electronic Services”. Complete the form and send it to the mailing address on the form for e-filing approval. An additional benefit to this process is that you will have electronic access to your account(s), and will be able to verify all of your information. Additional online IRP transactions will become available in the future. -1- ADVANTAGES OF IFTA REGISTRATION The IFTA license offers several benefits to the interstate motor carrier. These benefits include: • One Application, • One Set of Credentials (IFTA license and decals), • One Quarterly Tax Return (reflects net tax and refund due), • One Audit (conducted by the base jurisdiction), and • One Check to Write each Quarter. BASE STATE REQUIREMENTS Florida is your base jurisdiction for IFTA licensing and reporting if you meet all of the following criteria: • You have an established place of business in Florida from which motor carrier operations are performed; • You maintain the operational control and the records for qualified motor vehicles in Florida or can make those records available in Florida; • You have qualified motor vehicles which actually travel on Florida highways and are based in Florida; and • You operate in at least one other IFTA jurisdiction. IFTA VEHICLE QUALIFICATIONS All qualified motor vehicles that are licensed in Florida and engaged in interstate commerce in at least one other member jurisdiction may license under IFTA. A qualified motor vehicle is a motor vehicle used, designed or maintained for the transportation of persons or property, and: • Has two (2) axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds; • Has three (3) or more axles regardless of weight; or • Is used in combination when the weight of such combination exceeds 26,000 pounds. EXEMPT VEHICLES The following vehicles are exempt from registration under the International Fuel Tax Agreement: • • Recreational Vehicles Not Used in Connection with Any Business Endeavor Government-Owned Vehicles Florida does not require IFTA registration for government-owned vehicles, but other IFTA member jurisdictions may. IFTA MEMBER JURISDICTIONS All states in the contiguous United States and most of the Canadian provinces are members of the International Fuel Tax Agreement. Alaska, the District of Columbia, and the Yukon and Northwest Territories of Canada are the only remaining non-member jurisdictions. APPLICATION REQUIREMENTS FOR IFTA Any motor carrier based in Florida and operating one or more qualified motor vehicle(s) in at least one other IFTA member jurisdiction must file an Application for International -2- Fuel Tax Agreement (IFTA) Credentials (HSMV 85008). (Example of IFTA Application on pages 4, 5 and 6.) HELPFUL INFORMATION - If you plan to open both an IFTA and IRP account, both accounts should have the exact same business name and use the same Federal Employer Identification Number (FEIN). The account name must be the same as the one used to obtain your U.S. Department of Transportation (US DOT) credentials, if you are operating under your own authority, and it should match the name and FEIN used on your Internal Revenue Service Form 2290. For your convenience, the IFTA Application is available on the Department’s Website at: www.flhsmv.gov/html/forms.html Applications must be filled out completely, and typed or legibly printed in ink. Submit the completed application to the following address for processing: Department of Highway Safety and Motor Vehicles Division of Motor Vehicles Bureau of Motor Carrier Services Neil Kirkman Building, MS-62 2900 Apalachee Parkway Tallahassee, Florida 32399-0626 -3- EXAMPLE -4- EXAMPLE -5- EXAMPLE -6- QUALIFIED IFTA LICENSEE If a carrier qualifies as an IFTA licensee, but does not wish to participate in the IFTA program, temporary fuel use permits must be obtained to travel through member jurisdictions according to the regulations of each member jurisdiction. (See page 19 for a listing of Wire Service Companies authorized to sell temporary permits in Florida.) FOR YOUR INFORMATION • A carrier WILL NOT be issued IFTA credentials if their account is delinquent, or if the carrier was previously licensed in another IFTA jurisdiction and the carrier’s license has been suspended or revoked by that jurisdiction. • The bureau WILL NOT issue a license, if the license application submitted contains misrepresentations, misstatements, or omissions of required information. IFTA ACCOUNT NUMBER Your Federal Employer Identification Number (FEIN) will be used as your IFTA account number. If you do not have an FEIN and cannot obtain one, an assigned number will be applied to your account. ALWAYS include your IFTA account number (FEIN) on all checks, applications and/or documents filed with the bureau so that the correct account will be updated. IFTA FEES AND CREDENTIALS IFTA decals are renewed annually and cost $4.00 per pair. One IFTA license will be assigned to each IFTA licensee. (See Example of IFTA License on page 8). A photocopy of the license must be maintained in the cab of each motor vehicle. The original license issued by the bureau should be retained at your business address. The IFTA license is valid for the calendar year January 1 through December 31. WARNING: If a carrier is found operating a qualified motor vehicle in Florida without an IFTA license and decals, the vehicle operator may be required to purchase a temporary fuel permit ($45.00) and pay a $50.00 fine. -7- International Fuel Tax Agreement (IFTA) License State of Florida Division of Motor Vehicles Name on Account License Number: Mailing Address Issue Date: Effective Date: Expiration Date: The above license is issued under the terms of the International Fuel Tax Agreement and is valid for vehicles operated by the licensee in all IFTA Jurisdictions. License expires on the expiration date unless cancelled or revoked prior to the expiration date. Photocopies of this license are valid. Retain the original license at your business address. A copy of this license must be carried in each qualified motor vehicle. Questions concerning this license should be addressed to: Department of Highway Safety and Motor Vehicles Bureau of Motor Carrier Services Neil Kirkman Building, Room A110, MS-62 2900 Apalachee Parkway Tallahassee, Florida 32399-0626 (850) 617-3711 EXAMPLE OF IFTA LICENSE -8- IFTA DECALS Two decals will be issued for each qualified motor vehicle operated by the IFTA licensee. (See copy of IFTA Decal on this page.) IFTA decals are not vehicle specific. IFTA requires that one decal be placed on the exterior portion of the passenger’s side of the power unit. The second decal is required to be placed on the exterior portion of the driver’s side of the power unit. A licensee may request extra decals for fleet additions. Decals that are assigned to new owner-operators under long-term lease must be recalled once the lease is terminated. Licensees may request additional decals throughout the license year by completing a Decal Order Form, HSMV 85010. (See copy of IFTA Decal Order Form on page 10.) Transporters, manufacturers, dealers or drive-away operators may display the decals in a temporary manner, but they must be visible on both sides of the cab. WARNING: Failure to display the IFTA decals properly may subject the vehicle operator to the purchase of a temporary fuel permit ($45.00) and a $50.00 fine. EXAMPLE OF IFTA DECAL -9- EXAMPLE - 10 - LEASE AND RENTAL AGREEMENTS A lessor who is regularly engaged in the business of leasing or renting motor vehicles (without drivers) for compensation to lessees may be issued a license, if an application has been properly filed and approved by the base jurisdiction. For motor vehicle leases of less than thirty days, the lessor will be liable for fuel use tax. For leases of thirty days or more, where a carrier is using independent contractors, the lessor and lessee will be given the option of designating who will report and pay fuel use tax. Leases and rental agreements should detail which party, lessor or lessee, is responsible for fuel tax reporting. These agreements need to specifically define the period the agreement covers. If the lease does not clearly establish which party will report fuel tax use, the vehicle owner may be held responsible. ENFORCEMENT REQUIREMENTS All registered IFTA carriers with a vehicle displaying current decals on December 31 are extended a two-month grace period in order to display new decals. WARNING: Failure to display valid decals and a copy of the license, or a valid temporary fuel permit may subject the operator of the vehicle to the purchase of a temporary fuel permit ($45.00) and a $50.00 fine. BANKRUPTCY If you file for bankruptcy, send a copy of your order (or notice) of bankruptcy to our office. We will revoke your license, if you fail to file returns and/or fail to pay all fuel tax, penalty and interest due. To avoid revocation of your license due to bankruptcy, please contact our office for assistance. TAX REPORTING REQUIREMENTS All licensees must file an IFTA quarterly tax return with the bureau. (See copy of tax return on pages 13 through 16.) The quarterly tax return indicates the tax or refund due for each member jurisdiction. For other helpful information, see pages 27 and 28 for the “Most Common Errors/Problems Experienced by Carriers When Filing IFTA Tax Returns”. Only one check should be written to the department for the net tax due. However, if you are making a tax payment and an audit payment, and you intend to write one check, please clearly indicate on the check the payment amounts for each. Or, in this case, separate checks will be accepted in order to insure proper credit to the appropriate account. If the quarterly tax return indicates a net tax credit, the state of Florida will either refund the money to you on behalf of the other jurisdictions or maintain the amount as a credit against future tax liabilities. Current tax rates for all member jurisdictions are provided with the IFTA quarterly tax return. The tax rates are also available online at www.IFTACH.org. - 11 - Included in the IFTA quarterly tax return is the following information: • Total miles, taxable and nontaxable, traveled by the licensee’s qualified motor vehicles in all jurisdictions, including trip permit miles; • Total gallons of fuel placed in the tanks of qualified vehicles, taxable and nontaxable, by the licensee in all jurisdictions; • Total miles and taxable miles traveled in each jurisdiction; • Tax-paid gallons purchased in each jurisdiction; and • Current tax rates for each jurisdiction. The IFTA quarterly tax return form will be sent to IFTA licensees at least thirty (30) days prior to the due date. Failure to receive the quarterly tax return form does not release the licensee from reporting obligations. Quarterly tax return forms may be obtained from the bureau by contacting the office indicated on the introduction page of this manual. IMPORTANT…A quarterly tax return must be filed even if the licensee does not operate or purchase taxable fuel in any IFTA member jurisdiction in a particular quarter. The due date for the quarterly tax return is the last day of the month immediately following the close of the quarter for which the return is being filed. TAX RETURN REPORTING QUARTERS January thru March April thru June July thru September October thru December DUE DATES April 30 July 31 October 31 January 31 The quarterly tax return must be postmarked or hand delivered by the reporting quarter’s due date. If the due date is a Saturday, Sunday, or legal holiday, the next business day is considered the due date. The licensee will be subject to the IFTA penalty and interest provision if the return is not filed by the due date for the reporting quarter. POSTMARK DATE The Bureau of Motor Carrier Services uses the postmark date stamped by the post office to determine timeliness of your return. If you are filing your tax return near the due date, it is a good idea to take it to a post office and ask for the postmark cancellation stamp, which indicates the date, to be placed on the envelope containing the return. Sometimes mail placed in drop boxes is not postmarked until the next business day. Please send all tax returns to: Division of Motor Vehicles Bureau of Motor Carrier Services Neil Kirkman Building, MS-62 2900 Apalachee Parkway Tallahassee, Florida 32399-0626 - 12 - EXAMPLE - 13 - EXAMPLE - 14 - EXAMPLE SCHEDULE 1, PAGE 1 - 15 - EXAMPLE SCHEDULE 1, PAGE 2 - 16 - PENALTY AND INTEREST When a licensee fails to file a timely tax return or fails to remit all tax due, the licensee is subject to penalty and interest. The penalty for failure to report or pay tax when it is due, is the greater of $50.00 or ten percent (10%) of the net tax due to all member jurisdictions. The interest is computed on all delinquent taxes due each jurisdiction at a rate of one percent (1%) per month, from the date the tax was due for each month or fraction thereof until paid. Filing on time means the return is postmarked by the due date with the complete payment enclosed. EXEMPT FUEL USE IFTA recognizes that some jurisdictions allow exemptions of fuel used for offloading purposes. However, the offloading fuel exemption is not to be shown on an IFTA tax return. Requests for exempt fuel refunds are handled by the specific state in which the fuel was purchased. • For Example: All Florida refunds for offloading purposes are issued by the Florida Department of Revenue. Please note, a licensee must maintain adequate records to support the exemption and/or refund claimed. TAX EXEMPT MILES IFTA exempts fuel tax reporting when your vehicle operates under a fuel trip permit. Some jurisdictions have unique economic and geographic characteristics which have given rise to various definitions of tax exempt miles, and IFTA recognizes this concept. All jurisdictions require supporting documentation for tax exempt miles. When audited you must provide proof of exempt mileage claimed on quarterly tax returns. If you have further questions regarding tax exempt miles, please contact the individual jurisdiction(s) for clarification. You may view tax exemptions or obtain contact information for other jurisdictions online at www.IFTACH.org. REFUNDS AND CREDITS A refund may be claimed on the IFTA tax return for any over payment or over purchase of fuel (if the overpayment exceeds $10.00) in a reporting period. If a refund is requested, please place a check mark in the appropriate box on the IFTA tax return. Once the bureau determines that all tax liabilities, including any outstanding audit assessments have been satisfied to all member jurisdictions, a refund will be issued. A refund may be denied, if the licensee is delinquent in filing any quarterly tax return(s) or is unable to produce the necessary records to support the requested refund. IMPORTANT NOTE: If a refund is not requested, the credit will be carried forward to the next reporting period. - 17 - DISCONTINUANCE OR TRANSFER OF BUSINESS Section 207.019(1), Florida Statutes, requires a motor carrier that stops doing business within the state because the business was closed, sold, or transferred, to notify the department in writing at least 10 days prior to the time the action is effective. This notice must give the date of closure and, in the event of a sale or transfer of the business, the date of the sale or transfer and the name and address of the purchaser or transferee. All diesel fuel or motor fuel use taxes become due and payable at the time of closure, sale, or transfer of the business. The motor carrier, at the same time as the closure, sale, or transfer of the business, must submit a return, pay all taxes, interest and penalties, and surrender to the department the registration issued to the business. If notice is not provided to the department as required in Section 207.019(2), Florida Statutes, the purchaser or transferee of the business is liable to the state for the amount of all taxes, penalties, and interest under the laws of this state accrued against the motor carrier selling or transferring the business on the date of sale or transfer. However, the purchaser or transferee is only liable to the extent of the value of the property and business which was purchased. NO WORDING in Section 207.019(3), Florida Statutes, releases the motor carrier that is transferring or closing their business from liability for any taxes or for any interest or penalty due under this chapter. CHANGE OF ADDRESS REQUIREMENT Section 207.019(4), Florida Statutes, requires the motor carrier to submit, in writing, to the department any change in address of their principal place of business within 10 days after the change becomes effective. See Change of Address form, HSMV 85041, on Page 32. LICENSE CANCELLATION An IFTA license may be cancelled at the request of any licensee provided all reporting requirements and tax liabilities to all member jurisdictions have been satisfied. The area in the upper right hand corner of the tax return has a box that can be checked to indicate that the return is “final”. If the tax return is “final”, include the date “operations ceased” on the next line down under the “final” check box. The license may also be cancelled by submitting a written request for cancellation. Upon cancellation, the licensee must return the original IFTA license and all IFTA decals (remove all decals from vehicles and return along with any unused decals). If the license and decals have been destroyed, a notarized letter stating this fact must be submitted before the account can be cancelled. LICENSE SUSPENSION AND REVOCATION An IFTA license may be suspended and/or revoked for any of the following reasons: • Failure to file an IFTA quarterly tax return; • Failure to remit all taxes due all member jurisdictions; • Failure to pay or protest an audit assessment within the established time period; or • Failure to maintain adequate records or make records available when requested. - 18 - The bureau will notify all jurisdictions when a suspension or revocation has occurred or has been released. DO NOT operate vehicles when a license has been revoked or suspended. LICENSE REINSTATEMENT The bureau may reinstate an IFTA license once the licensee files all required returns and satisfies all outstanding liabilities due to all jurisdictions. TEMPORARY REGISTRATION Temporary Fuel Use Permits – Vehicles subject to the provisions of Chapter 207, Florida Statutes, must secure an IFTA decal or secure a temporary fuel use permit before operating over Florida highways or the highways of an IFTA member jurisdiction. Temporary fuel use permits are available to motor carriers through any of the wire service companies listed below. COMPANY NAME Custom Permit Service InterState Permit Services Jet Permit Services Transceiver / Comdata Trans / Mid-America Xero-Fax, Inc. TYPE OF PERMITS ISSUED TELEPHONE NUMBER FAX NUMBER Fuel 800-669-5014 614-351-1744 Trip/Hunter/Fuel 800-343-4889 800-851-1252 Trip/Hunter 800-788-0603 800-760-7434 Trip/Hunter/Fuel 800-749-9143 800-749-9114 Trip/Hunter/Fuel 800-228-7577 402-493-7376 Trip/Hunter/Fuel 800-937-6329 888-857-1969 RECORD KEEPING REQUIREMENTS MILEAGE RECORDS – It is the licensee’s responsibility to maintain records of all intrastate and interstate operations of qualified motor vehicles. The licensee's records must support the information reported on the quarterly tax return. • To assist you with proper record keeping requirements, an auditor from the bureau should contact you within 90 days of your initial registration as a Florida-based IFTA carrier. If you have not been contacted within 90 days of your initial registration, or you are just looking for suggestions on setting up an acceptable record keeping system, please contact the Auditing Section at (850) 617-2910. • You may also request original copies of the suggested record keeping forms listed on pages 23 through 26 at the above telephone number. These forms are also available on the department’s website at: www.flhsmv.gov. The Individual Vehicle Mileage Record (IVMR), as required for the International Fuel Tax Agreement, is an acceptable source document for recording vehicle mileage information. The IVMR must be summarized on a monthly basis. - 19 - TRIP REPORTS - A “trip report” is another acceptable source document. However, a trip report must include all of the following information: • Date of Trip (starting and ending) • Trip Origin and Destination (including city and state) • Routes of Travel • Beginning and Ending Odometer Readings • Total Trip Miles • Mileage by Jurisdiction • Vehicle Unit Number • Licensee’s Name • Registrant’s Name FUEL RECEIPTS – The licensee must maintain complete records of all fuel purchases. Separate totals must be compiled for each fuel type. FUEL TYPES are as follows: • Diesel • Gasoline • Gasohol • Propane • LNG • CNG • Ethanol • Methanol • E-85 • M-85 • A-55 (Fuel information must be summarized on a monthly basis.) ACCEPTABLE FUEL RECEIPTS OR INVOICES…must include, but are not limited to, the following: • Date of Purchase • Seller’s Name and Address • Number of Gallons Purchased • Fuel Type • Price Per Gallon • Unit Number • Purchaser’s Name (Any receipt which contains alterations or erasures will not be accepted.) FUEL RECORDS MUST CONTAIN: • Fuel Receipts or Invoices • Date of Purchase • Name and Address of Seller • Number of Gallons Purchased • Type of Fuel Purchased • Unit # or License Plate # of the Vehicle in Which Fuel was Placed • Bulk Fuel Reconciliation • Withdrawal Tickets - 20 - To obtain credit for withdrawals from licensee-owned, tax paid bulk storage, the following records must be maintained: • Date of Withdrawal; • Number of Gallons or Liters; • Fuel Type; • Unit Number; and • Purchase and inventory records to substantiate that tax was paid on all bulk processes. RECORDS RETENTION Every licensee shall maintain records to substantiate information reported on the quarterly tax return. These records must be maintained for a period of four (4) years from the due date of the return or the date that the return was filed, whichever is later. Records MUST be made available upon request by any member jurisdiction. PROPER FORMS FOR MAINTAINING ADEQUATE RECORDS On pages 23 through 26 are examples of record keeping forms that may be used in maintaining proper records for reporting your fuel purchases and miles driven. You may request original copies of the suggested record keeping forms be sent to you. These forms are also available on the department’s website at: www.flhsmv.gov. It is not required that you use the exact forms included in this manual, but that the information requested on these examples be compiled and summarized in a format which can be tied back to all your supporting documents. • • Using similar forms as part of your record keeping system will not only keep your records organized for reporting your IFTA tax returns, but will help reduce the errors in filing your returns. In addition to helping you keep proper IFTA records, maintaining such forms will assist you in correctly completing your International Registration Plan (IRP) renewal application. For suggestions on setting up your record keeping system, you may contact the Bureau of Motor Carrier Services, Audit Section, at (850) 617-2910. BEING SELECTED FOR AN AUDIT NOTICE OF AUDIT - In accordance with the provisions of the International Fuel Tax Agreement, the department is authorized to audit books and records of every motor carrier for the purpose of determining the correctness of any tax return filed. Once an account is selected for an audit, the registrant will be formally contacted to determine when and where this audit will take place. During the audit, the auditor will review the records in accordance with IFTA requirements to determine if all jurisdictions have received their proper amount of taxes due. Without the maintenance of required records as outlined in this manual, verification that your IFTA tax returns have been filed properly cannot be made. - 21 - NO RECORDS? In cases where there are no records, inadequate records, improperly maintained records or incomplete records, an estimate will be made of taxes that may be owed to each jurisdiction. Also, without proper records to support the filed tax returns, it may be necessary to make adjustments to certain line items as reported. As described in Section 207.012, Florida Statutes, and IFTA, an estimate of the amount of taxes due and unpaid will be made and the taxpayer will be assessed accordingly: • • • • FIRST…The reported miles per gallon (mpg) may be lowered to four (4) mpg, if it was reported as a higher figure. SECOND…An estimate of miles driven will be made. THIRD…NO CREDIT for tax-paid gallons purchased in any state will be given without valid fuel receipts as described on pages 20 and 21. FOURTH…Registration privileges under IFTA may be suspended or revoked for failure to maintain adequate records. Whichever IVMR form you use, you will only use one form per vehicle. Never combine vehicles on these forms. It is only when you complete your monthly or quarterly recap forms that different vehicle IVMR’s are combined. SUGGESTED ACCEPTABLE FORMS to assist you in your record keeping requirements are located on the next four pages of this manual. - 22 - This EXAMPLE FORM is used to summarize your miles traveled and fuel purchased for a three-month period that will coincide with an International Fuel Tax Agreement (IFTA) quarter. QUARTERLY MILEAGE & FUEL PURCHASE RECAP For _______________ quarter ending _______________ Identify and list all miles and fuel purchases for each jurisdiction separately. All non-IFTA state miles and non-IFTA fuel purchases may be added together. All miles and fuel purchases reported on this summary must be supported by IVMR’s and fuel receipts. It is recommended that those source documents be filed with this recap for verification. Non-IFTA miles __________ Non-IFTA fuel purchases __________ Florida miles __________ Florida fuel purchases __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total miles: __________ Total fuel purchases: __________ Use the space below to designate IRP miles by jurisdiction that are included in the non-IFTA miles above. These miles are already included in your total miles. JURISDICTION _____________ _____________ _____________ _____________ _____________ _____________ _____________ MILES _________ _________ _________ _________ _________ _________ _________ QCAP 0996 - 23 - This EXAMPLE FORM is used to summarize your miles traveled and fuel purchased for each month. It is only required that you maintain a monthly summary or a quarterly summary. However, maintaining a monthly summary makes it easier to maintain the quarterly summary. In addition, using a monthly summary and then adding up the three months for your quarterly summary reduces the chances of errors and omissions. MONTHLY MILEAGE & FUEL PURCHASE RECAP For the month of: ____________________ Identify and list all miles and fuel purchases for each jurisdiction separately. All non-IFTA state miles and non-IFTA fuel purchases may be added together. All miles and fuel purchases reported on this summary must be supported by IVMR’s and fuel receipts. It is recommended that those source documents be filed with this recap for verification. Non-IFTA miles __________ Non-IFTA fuel purchases __________ Florida miles __________ Florida fuel purchases __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total miles: __________ Total fuel purchases: __________ Use the space below to designate IRP miles by jurisdiction that are included in the non-IFTA miles above. These miles are already included in your total miles. JURISDICTION _____________ _____________ _____________ _____________ _____________ _____________ _____________ MILES _______________ _______________ _______________ _______________ _______________ _______________ _______________ MCAP 0996 - 24 - This EXAMPLE FORM is an individual vehicle mileage report (IVMR) and is used to record miles traveled and fuel purchased for only one trip at a time. It is normally used for extended trips that take a motor carrier through many jurisdictions for a long period of time. The information recorded on this form will be used to complete either your monthly or quarterly summary forms. INDIVIDUAL VEHICLE MILEAGE/FUEL RECORD Power Unit # ________ Trailer Unit # ________ Fleet # ________ Report beginning and ending mileage for each trip or day traveled. Also, record the odometer reading each time you cross a state line and complete the miles driven for each jurisdiction. There may be more than one entry per trip or day. Date Jurisdiction Beginning Odometer Ending Odometer Places Traveled & Routes Used Miles Traveled Gallons Purchased Explain how jurisdictional miles are derived if odometer readings are not recorded when crossing jurisdiction boundaries: ___________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________ Driver’s Name IVMR __________________ Date - 25 - This EXAMPLE FORM is an IVMR, but it is used for multiple trips. A motor carrier will use this form to record two or more trips over a specific time period as determined by the operator. It may be used for weekly, monthly, or quarterly trips depending on how many trips a registered vehicle makes in any given period. Some carriers choose to use other types of IVMR forms when two or more motor vehicles are running different trips. INDIVIDUAL VEHICLE MILEAGE RECORD Power Unit # ________ Trailer # ________ Fleet # ________ Trip # ________ Terminal Address ___________________________________________________ Trip Origin _____________________ Destination ________________________ Ending Odometer Reading ___________ Beginning Odometer Reading ___________ Date Jurisdictions Places and Routes Traveled Odometer Reading At State Line Miles Traveled Gallons Purchased In Each Jurisdiction TOTAL MILES TRAVELED: Explain how jurisdictional miles are derived if odometer readings are not recorded when crossing jurisdiction boundaries: ___________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________ Driver’s Name __________________ Date IVMR 0896 - 26 - MOST COMMON ERRORS/PROBLEMS EXPERIENCED BY CARRIERS WHEN FILING IFTA RETURNS The most common reason for an error on a tax return is simple mathematical miscalculation. It is recommended that the carrier double check all calculations before filing a tax return. A minor error can cause an entire tax return to be calculated incorrectly, and thus create a costly mistake for the carrier. Tax returns with detected errors cannot be processed and will be returned to the carrier for correction. In an effort to assist the carrier in completing an error-free IFTA tax return, we have listed on the following pages the most common errors experienced by carriers when completing IFTA tax returns. ERROR #1 Calculating and Using Miles Per Gallon (MPG) • Simply stated, MPG is the quarterly sum of all miles traveled (both IFTA and nonIFTA) by all IFTA registered vehicles in your fleet and divided by the total gallons of fuel (both IFTA and non-IFTA) placed in the propulsion tanks of your vehicle(s). In most jurisdictions, all miles traveled are IFTA miles. Regardless, all miles must be reported for this calculation. Once fuel is placed in the vehicle’s propulsion tank, it is considered part of the total gallons for that reporting quarter and should be reported on Line 2B. This is true, even if the vehicle is not moved after the fuel is placed in the tank, e.g., refueling from the bulk storage tank after returning from a trip. Fuel still in a bulk storage tank should not be reported. Bulk storage fuel is reported only after it is transferred to the qualified IFTA vehicle’s propulsion tank. • How to Round the MPG Figure – The MPG figure is always rounded to the nearest second decimal place, e.g., 4.564 = 4.56; 4.567 = 4.57. To accurately round a figure to 2 decimal places, you must carry the figure out 3 decimal places and round to the second decimal place accordingly. Place the MPG rounded to the second decimal place in Column J, e.g., write 4.56 instead of 5. • One Final Point On Calculating MPG – Calculations must be shown on Line 2A and Line 2B. This is the data used to determine your MPG, and it must be shown. ERROR #2 Difference Between Column B (Total Miles) and Column C (Taxable Miles) • In the majority of cases, Column B and Column C will be the same. There will be some cases where the carrier may have non-taxable miles, e.g., miles operated on trip permits. In these cases, it will speed processing, if you footnote the reason why certain miles were non-taxable. ERROR #3 Column D (Taxable Gallons) Cannot Equal Column E (Tax Paid Gallons) for Each Jurisdiction • With the exception of carriers that did not travel out of the State of Florida during the tax quarter, it is virtually impossible to purchase the exact amount of fuel as expended in each jurisdiction on a multi-jurisdiction tax return. A tax return filed as such is an indication that the carrier may be guessing at their mileage and fuel purchases, and may result in an audit of the carriers records. The International Fuel Tax Agreement Plan requires that adequate business records be maintained for at least four years from the date of the tax return filing. - 27 - ERROR #4 Column E (Tax Paid Gallons) Cannot Exceed Line 2B (Total Gallons) • Line 2B is the total number of gallons placed in the fuel propulsion tanks of qualified IFTA vehicles during the reporting tax quarter. Therefore, all tax paid gallons, Column E, must be included in the Line 2B figure. Unless tax free fuel purchases were made, Column E will equal Line 2B, but it can never exceed it. Technical assistance and additional information pertaining to the completion of the IFTA tax return can be obtained by contacting the Bureau of Motor Carrier Services Help Line at telephone number (850) 617-3711. DEFINITIONS APPLICANT – Means the person whose name the uniform application for licensing is filed in with a base jurisdiction for the purpose of motor fuel tax reporting under the provisions of this Agreement. AUDIT -- Means a physical examination of the records and source documents supporting the licensee’s returns. BASE JURISDICTION -- Means the member jurisdiction where qualified motor vehicles are based for vehicle registration purposes, and: • Where the operational control and operational records of the licensee’s qualified motor vehicles are maintained or can be made available; and • Where some travel is accrued by qualified motor vehicles within the fleet. The commissioners of two or more affected jurisdictions may allow a person to consolidate several fleets that would otherwise be based in two or more jurisdictions. BUREAU -- Means the Bureau of Motor Carrier Services. CARRIER -- Means a person who operates or causes to be operated a qualified motor vehicle on any highway in the State of Florida. CANCELLATION -- Means the annulment of a license and its provisions by either the licensing jurisdiction or the licensee. COMMISSIONER -- Means the official designated by the jurisdiction to be responsible for administration of this Agreement. FLEET -- Means one or more vehicles. IN-JURISDICTION DISTANCE -- Means the total number of miles or kilometers operated by a registrant’s/licensee’s qualified motor vehicle(s) within a jurisdiction including miles operated under an IFTA temporary permit. In-jurisdiction miles or kilometers does not include those operated on temporary fuel use tax emergency permits or those exempted from fuel taxation by a jurisdiction. JURISDICTION -- Means a state of the United States, the District of Columbia, or a province or territory of Canada. - 28 - LICENSEE -- Means a person who holds an uncancelled IFTA license issued by the base jurisdiction. MEMBER JURISDICTION -- Means a jurisdiction that 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 persons or property which: • Has two (2) axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or • Has three (3) or more axles regardless of weight; or • Is used in combination when the weight of such combination exceeds 26,000 pounds or 11,797 kilograms. NOTE: Qualified motor vehicles do not include recreational vehicles. 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 cannot 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 containing owner and vehicle data. REPORTING PERIOD -- Means a period of time consistent with the quarterly calendar periods of January 1 thru March 31, April 1 thru June 30, July 1 thru September 30, and October 1 thru December 31. REVOCATION -- Means withdrawal of license and privileges by the licensing jurisdiction. SUSPENSION -- Means temporary removal of privileges granted to the licensee by the licensing jurisdiction. TOTAL DISTANCE -- Means all miles or kilometers traveled during the reporting period by every qualified vehicle in the licensee’s fleet, regardless of whether the miles or kilometers are considered taxable or nontaxable by a jurisdiction. WEIGHT -- Means the maximum weight of the loaded vehicle or combination of vehicles during the registration period. - 29 - ADDRESSES AND TELEPHONE NUMBERS FLORIDA INTERNATIONAL FUEL TAX AGREEMENT Department of Highway Safety and Motor Vehicles Bureau of Motor Carrier Services BMCS WALK-IN FACILITY Cross Creek Service Center 1214 Capital Circle, SE, Suite J Tallahassee, Florida 32301 Telephone (850) 617-3711 Fax (850) 487-4966 BMCS HEADQUARTERS Neil Kirkman Building, Room A-110 2900 Apalachee Parkway – MS 62 Tallahassee, Florida 32399-0626 Telephone (850) 617-3711 Fax (850) 617-5185 BMCS AUDIT HEADQUARTERS Neil Kirkman Building – Room A-118 2900 Apalachee Parkway – MS 58 Tallahassee, Florida 32399-0626 Telephone (850) 617-2910 Fax (850) 617-5187 BMCS AUDIT FIELD OFFICES Neil Kirkman Building, Room A-139 2900 Apalachee Parkway, MS-58 Tallahassee, Florida 32399-0626 Telephone (805) 617-2910 Fax (850) 617-5187 4101 Clarona-Ocoee Road, Suite 160 Orlando, Florida 32810 Telephone (407) 445-7400 Fax (407) 445-7411 318 Southeast 25th Avenue Ocala, Florida 34471 Telephone (352) 620-3993 Fax (352) 732-1459 5701 East Hillsborough Avenue, Suite 2228 Tampa, Florida 33610 Telephone (813) 740-4300 Fax (813) 740-4307 323 10th Avenue, West, Suite 200 Palmetto, Florida 34221 Telephone (941) 723-4634 Fax (941) 723-4553 1135 Banks Road Margate, Florida 33063 Telephone (954) 969-4233 Fax (954) 969-4238 PLEASE NOTE IFTA licenses or IRP registrations ARE NOT processed at the above six field office locations. - 30 - ADDITIONAL SPECIFIC INFORMATION Federal Motor Carrier Safety 545 John Knox Road Suite 102 Tallahassee, FL 32303-4117 Telephone (850) 942-9338 UNITED STATES DEPARTMENT OF TRANSPORTATION Federal DOT, Washington, D.C. Telephone (202) 366-4000 www.safer.fmcsa.dot.gov/ FLORIDA DOT MCC HQ’S AND FIELD OFFICES Call Florida DOT MOTOR CARRIER COMPLIANCE HQ’s 325 John Knox Road, Building K Tallahassee, FL 32303 Telephone (850) 245-7900 Toll Free (866) 374-3368, Ext. 7900 www.dot.state.fl.us HAZARDOUS MATERIALS ENFORCEMENT HIGHWAY INTERDICTION PROGRAM COMMERCIAL MOTOR VEHICLE AND CARGO THEFT OVERSIZE / OVERWEIGHT PERMITS Florida Department of Transportation PERMIT OFFICE 2740 Centerview Drive Tallahassee, FL 32301 Telephone (850) 410-5777 Fax (850) 410-5779 LIVE STOCK HAULER PERMITS Telephone (850) 410-0926 FUEL IMPORTATION Florida Department of Revenue General Tax Administration 1379 Blountstown Highway Tallahassee, FL 32304-2716 Telephone 1-800-352-3671 LICENSING IMPORT / DIVERSION AUTHORIZATION NUMBERS OFFICE OF FLORIDA’S TURNPIKE Florida DOT Telephone 1-800-749-7453 TALLAHASSEE LOCATION OF THE INTERNAL REVENUE SERVICE Internal Revenue Service 227 North Bronough Street, Room 1019 Tallahassee, FL 32301 Telephone 1-800-829-1040 USE OF COMCHEKS Telephone 1-800-741-3030 COMMERCIAL DRIVER LICENSES Florida Department of Highway Safety and Motor Vehicles Division of Driver Licenses Public Service Information Neil Kirkman Building, Room B-133 2900 Apalachee Parkway Tallahassee, FL 32399 Telephone (850) 617-2000 or 617-2606 www.flhsmv.gov - 31 - - 32 - IFTA JURISDICTION INFORMATION You may obtain the most current jurisdiction contact information as well as other helpful tips from the official IFTA Website, as follows: www.iftach.org/ Click on One Stop Shop. Then click on the drop-down button where it says “Select your base jurisdiction”. Find the jurisdiction you wish to view and click on it. If you do not have access to a personal computer, you may contact the MCS Help Desk (Call Center) at (850) 617-3711, for assistance. FLORIDA TRUCKING INFORMATION • By Telephone: (850) 414-4700 ¾ This line connects to any commercial vehicle operations regulatory agency in the state of Florida or the Federal Motor Carrier Safety Administration. • By Internet: www.FloridaTruckingInfo.com ¾ ¾ ¾ ¾ ¾ Links to home pages for commercial vehicle operations regulatory agencies Forms available online for downloading Apply online for Oversize/Overweight permits Important information and statutes available for downloading Frequently Asked Questions available FLORIDA IFTA TRUCKING MANUAL HSMV 85920 – (Rev. 7/08) -1-
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