What is the purpose of the International Fuel Tax Agreement (IFTA)?
The purpose of this Agreement is to promote and encourage the fullest and most efficient possible use of the highway system by making uniform the administration of motor fuels use taxation laws with respect to motor vehicles operated in multiple member jurisdictions.
To enable participating jurisdictions to act cooperatively and provide mutual assistance in the administration and collection of motor fuels use taxes.
To establish and maintain the concept of one fuel use license and administering base jurisdiction for each licensee and to provide that a licensee's base jurisdiction will be the administrator of this Agreement and execute all its provisions with respect to such licensee.
What are the requirements for an International Fuel Tax Agreement (IFTA)?
Any person based in a member jurisdiction operating a qualified motor vehicle(s) in two or more member jurisdictions.
Qualified Motor Vehicle means a motor vehicle used, designed, or maintained for transportation of persons or property and:
Qualified Motor Vehicle does not include recreational vehicles.
What member jurisdiction must I obtain my IFTA License/Renewal in?
The member jurisdiction where the qualified motor vehicles are based for vehicle registration purposes and:
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.
If I do not have an IFTA License and have a qualified motor vehicle traveling through a member jurisdiction what do I need to do?
In lieu of obtaining an IFTA license, you may satisfy motor fuel use tax obligations on a trip-by-trip basis in each jurisdiction you are traveling in. You can purchase a Trip Permit at any Motor Carrier Inspection Station along the jurisdiction border or through the Central Permit Office (785) 296-2356.
Must I reapply each year for an IFTA License?
Yes. You will be mailed a renewal application prior to the expiration of your current credentials.
I currently have an active IFTA license and am adding another vehicle to my fleet, what can I do?
Kansas will issue to a licensee in good standing a 30-day IFTA temporary permit valid for all member jurisdictions to carry in lieu of displaying the annual decals. It will be vehicle specific, and you are only allowed one per vehicle.
You will need to purchase an additional decal before your 30-day temporary permit expires.
Are there any reporting requirements to the base jurisdiction?
The licensee shall file a calendar quarterly return with the base jurisdiction and shall pay all taxes due and included with the return. Tax returns are required even if no operations were conducted or no taxable fuel was used during the reporting period.
Tax Return and full payment of taxes shall be due on the last day of the month following the close of the reporting period for which the return is due. If the last day of the month falls on a Saturday, Sunday, or legal holiday, the next business day shall be considered the final filing date.
When is penalty and interest assessed?
Penalty of $50.00 or 10 percent of delinquent taxes, whichever is greater. Penalty will be assessed when failing to file a return, filing a late return, or underpaying taxes due.
Interest shall be assessed at the rate of one (1) percent per month, on all delinquent taxes due each jurisdiction.
Are there any records keeping requirements with this license?
Yes. Every licensee shall maintain records to substantiate information reported on the quarterly tax returns. You must maintain your records for a period of four years.