Getting Started with International Fuel Tax Agreement (IFTA) and Interstate User Diesel Fuel Tax

Licenses and Permits Required

Depending on your business activities, you may need to register with us for multiple fuel tax licenses, permits, and accounts.

California fuel tax licensing requirements vary depending on where you travel and which fuel you use to power your vehicles. The chart below reflects situations when you would either license your vehicles under the International Fuel Tax Agreement (IFTA) or have a valid California Fuel Trip Permit. If you operate a vehicle whose travel is solely in California, you do not need an IFTA or Interstate User Diesel Fuel Tax License.

The following table displays the licenses and permits for the IFTA and Interstate User Diesel Fuel Tax Programs. See the Interstate User Diesel Fuel Tax and IFTA pages for more information.

Obtaining Your IFTA License

You may register for an IFTA license through our online services webpage. The online application requires basic information about your business and operations.

Please be sure to provide all information requested, including:

• All vehicle information.
• Your social security number or federal employer identification number (FEIN). Corporations, limited liability companies (LLCs), and partnerships must provide their FEIN.
• Your driver's license number.
• Your Department of Transportation (DOT) number.

Once we process your application and validate the information provided, you will receive your IFTA license and temporary decals (until you receive your permanent decals in the mail) that will entitle you to travel in all IFTA jurisdictions.

We may not issue you an IFTA license or decals if you were previously licensed in another IFTA member jurisdiction and your license was revoked or suspended by that jurisdiction. In addition, we will not issue a license or decals if we find that your application contains misrepresentations or misstatements.

IFTA Temporary Decals Permits

Once we process your application for an IFTA license and decals, we will issue a license and temporary decal permit for use until you receive your license and decals in the mail.

You must print out and place the temporary decal permit (for each vehicle registered) and a copy of your IFTA license in the qualified motor vehicle for which the decal was ordered. The temporary decal permit is valid only for that vehicle. We will issue you a temporary decal only if your account is in good standing.

Once you obtain the temporary decal permit, the vehicle is considered part of your IFTA fleet, and all miles driven and all fuel consumed by the vehicle during the period it operated on a temporary decal must be reported on your IFTA Quarterly Fuel Use Tax Return.

Once you receive your annual license and decals by mail and have affixed them on your qualified motor vehicle, you may discard the temporary decals.

IFTA License and Decals

We will mail you one annual license, valid for the calendar year (January through December), to cover all qualified motor vehicles you operate in IFTA jurisdictions (your “IFTA fleet”). You are required to make copies of the license so that one copy is carried in each qualified motor vehicle.

We will also send two decals for each qualified motor vehicle in your fleet. One decal must be placed on the exterior portion of the passenger side of the cab. The second decal must be placed in the same position on the driver's side. For buses, please attach one decal on each side, no further back than the rear of the driver's seat at eye level from the ground.

IFTA License and Renewal Fees

To maintain your IFTA account active, your IFTA license and decals must be renewed annually. The table below shows the annual renewal fees.

Interstate User Diesel Fuel Tax License

Once you register with us online, print out your Interstate User Diesel Fuel Tax License and make copies of the license so that one copy is carried in each qualified motor vehicle. See the Interstate User Diesel Fuel Tax page for more information.

Tax Rates

Visit the Tax Rates—Special Taxes and Fees webpage to view current and historical fuel tax rates.

Returns

You must file your tax return each quarter for your entire fleet through our online services webpage even if you do not travel outside of California or do not travel at all during the reporting period.

As you input your total miles and total gallons online, our system will calculate the tax you owe, or credit due to you for tax paid on fuel. If you have paid more tax than is owed, the overpayment will be refunded.

All applicable returns must be filed even if no transactions occurred during the reporting period. Filings are due on the last day of the month following the reporting period. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the next business day. Any amounts due must be paid by 12:00 a.m. (midnight) on the due date to be considered timely.

You may be required to file other returns or reports with us. Listed below are the applicable tax returns required by each filer type. Returns are available to file using our online services webpage.

Billing for Tax Due When a Return is Not Filed

If for any reason you do not file your tax return, we will issue a department-assessed billing based on the best information available to us.

If you do not file your tax return we may calculate an assessment based on your filing history, or an estimation of the fleet's liability based on an industry average miles per gallon (MPG) and industry average miles per qualified motor vehicle, plus applicable penalties and interest. In addition, we will not allow credit for tax paid fuel will be allowed in the assessment. If you believe that the billed amount is erroneous or excessive, it is your responsibility to provide factual evidence showing you owe less tax than what we calculated.

Records

Generally, you must maintain records for a period of four years from the due date of your quarterly tax return or the date the return was filed, whichever is later. Some jurisdictions may require you to keep your records for a longer period. If you maintain a bulk storage facility, you must maintain additional records. Records should generally contain:

• The date of your trip (starting and ending)
• Trip origin and destination, which should contain:
  • Both taxable and non-taxable use of fuel
  • Distance traveled for taxable and non-taxable use
  • Distance recaps for each vehicle for each trip and be recapped in a monthly fleet summary
• Route of travel
• Beginning and ending odometer reading for the trip
• Total trip miles or kilometers
• Miles or kilometers traveled in each jurisdiction
• Vehicle fleet number
• Registrant name
• Receipts for fuel bought and placed in vehicles, which should contain:
  • Date of each receipt of fuel
  • Name and address of the person from whom fuel was purchased or received
  • Number of gallons or liters received
  • Type of fuel
  • Vehicle or equipment into which the fuel was placed

For more detailed information please read Publication 50, Guide to the International Fuel Tax Agreement.