Search Category: IFTA

Idaho IFTA Reporting: Step 3

In columns 7 and 8, enter the total and taxable miles for the jurisdiction.

Column 7: Total miles

Enter the total miles traveled in each jurisdiction using the fuel type in column 5.

Total miles include every mile the vehicles in your IFTA fleet traveled in the jurisdiction (e.g., on-highway, off-highway [nontaxable], temporary permit).

Column 8: Total taxable miles

Enter the taxable miles for the fleet vehicles using the fuel type in column 5.

Report taxable miles for each fuel type. Most jurisdictions – including Idaho – don’t have distance exemptions reported on the IFTA report. So, your total miles will equal your taxable miles, in most cases.

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Idaho IFTA Reporting: Step 2

In columns 4 through 6, enter jurisdiction, fuel type, and tax rate.

Column 4: Jurisdiction

Enter the two-letter jurisdiction abbreviation from the rate chart included with your Form 3150 for the first jurisdiction where your fleet traveled during this reporting period.

Column 5: Fuel type

Enter the fuel type code (from Section 3) for the fuel type your IFTA fleet used in this jurisdiction. Enter another row for each fuel type your fleet used in this jurisdiction.

Column 6: Tax rate

Enter the tax rate for the jurisdiction and fuel type on each row you completed. You can find tax rates on the chart you receive with your quarterly return.

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Idaho IFTA Reporting: Step 1

IFTA uses the average fleet MPG by fuel type to determine how much tax you owe.

  • Summarize your miles and gallons for the first fuel type your fleet uses.
  • If your IFTA fleet uses more than one fuel type, summarize your miles and gallons for each fuel type before calculating the MPG.

Note: Read “Dual fuel vehicles” under Special Scenarios if you have an IFTA fleet with vehicles that use two fuel types.

Fuel type

Use the following fuel-type codes:

  • 1 = Gasoline
  • 2 = Diesel (including biodiesel and biodiesel blends)
  • 3 = Gasohol
  • 4 = Propane
  • 5 = LNG (liquefied natural gas)
  • 6 = CNG (compressed natural gas)
  • 7 = Ethanol
  • 8 = Methanol
  • 9 = E-85
  • 0 = M-85
  • A = A55
  • E = Electricity
  • F = Hydrogen

Section 3, column A: Total miles

Enter total miles traveled for the fuel type in the first column during the reporting period. Total miles are all miles that all your IFTA-qualified vehicles traveled using the fuel type in the first column. These miles include, but aren’t limited to:

  • Taxable miles
  • Nontaxable miles
  • Off-road miles
  • Miles traveled with temporary fuels tax permits
  • Non-IFTA jurisdiction miles
  • Nonrevenue miles (deadhead, bob-tail, etc.)

See the IFTA Articles of Agreement, R224 and R266, at www.iftach.org for the IFTA definition of total miles.

Section 3, column B: Total gallons

Enter total gallons of the fuel type in the first column that you pumped into the main fuel supply tank of your IFTA fleet vehicles during the reporting period.

  • This includes tax-paid and untaxed gallons.
  • You must include any fuel from the main supply tank used to operate power-take-off (PTO) or auxiliary engines.

See the IFTA Articles of Agreement, R239, at www.iftach.org for more information.

Section 3, column C: Average MPG

  1. Calculate average fleet mpg by fuel type by dividing total miles (Section 3, column A) by total gallons (Section 3, column B).
  2. Round to two decimal places. Examples: 4.5149 = 4.51 and 4.5159 = 4.52.
  3. Enter this number in Section 3, column C.

See the IFTA Procedures Manual, P720, at www.iftach.org for more information.

Next

  • Complete Steps 2 through 6 for each jurisdiction.
  • Use one row per jurisdiction unless there’s a surcharge, split rate, or additional fuel types.
  • Use page 2 if you need more rows. You can make copies of page 2, if needed.
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IFTA Terms Defined

Fuels summary

For more definitions, see the IFTA Articles of Agreement, Article II, Definitions, on the IFTA website.

Tax-paid fuel

Fuel that has the federal and state tax included in the price when it’s bought. Generally, fuel bought at a retail pump has federal or state fuel tax included in the purchase price. Gasoline and undyed diesel are two examples. To qualify for an IFTA tax-paid credit, the retailer’s receipt must show that tax was paid.

Exempt fuel

Fuel that’s exempt from taxes and doesn’t have federal or state tax included in the price. Exempt fuel is marked to identify it as exempt (for example, dyed diesel fuel). Each jurisdiction has its own rules about who can use exempt fuel and where they can use it. If you want to use exempt fuel, check with the appropriate jurisdiction. In Idaho, sales tax is due on exempt fuel unless a sales tax exemption applies.

Untaxed fuel

Fuel that doesn’t include federal or state fuel tax in the price. It can include exempt fuel or can be fuel on which tax isn’t paid (even though tax should be paid). It’s generally illegal to use untaxed fuel in vehicles licensed for use on public (“taxable”) roads.

Special rules apply to fuel bought on an Indian reservation. Contact the appropriate jurisdiction where the reservation is located for more information.

Taxable fuel

Fuel is taxable depending on its use. For most taxpayers, it’s taxable when it’s placed in a motor vehicle. For example, gasoline is taxable when placed in a licensed or required-to-be-licensed motor vehicle. Diesel is taxable when placed in a licensed motor vehicle and driven on public (“taxable”) roads.

Nontaxable fuel

Fuel is nontaxable when used for an exempt purpose. For example, in Idaho some roads are not supported by a federal, state, county, or city agency and are not taxable. Diesel isn’t taxable if it’s used in a vehicle on a road that isn’t a public (“taxable”) road.

Tax-paid gasoline isn’t taxable when its used in riding lawn mowers or similar equipment.

More terms

Alternative fuels

The Federation of Tax Administrators (FTA) Motor Fuel Section Uniformity Guide defines alternative fuels as any accountable product/motor fuel other than gasoline, gasohol, diesel fuel, dyed diesel fuel, kerosene, or dyed kerosene.

Auxiliary engine

An engine separate from the main engine that propels the vehicle and which is fueled by the main supply tank of a vehicle. Examples include auxiliary engines used to operate equipment such as refrigeration units and carpet cleaning units.

Base jurisdiction (R212)

The jurisdiction where you register your qualified motor vehicles, maintain the operational control and records of the vehicles, and travel some distance in your IFTA fleet vehicles.

Bulk fuel

Fuel kept in a tank (not the main supply tank of a vehicle) and redistributed to equipment and vehicles. This includes fuel placed in mobile fuel tanks and fuel kept in a small tank in the bed of a pickup truck. Most motor fuel can be stored in a bulk storage tank.

Diesel fuel, dye-added

Diesel fuel with a special red dye added to it at an IRS-recognized terminal or refinery that doesn’t include federal or state motor fuel tax in the purchase price. (See 26 USC 4082.) Dyed diesel fuel is for equipment and certain vehicles. In Idaho, dyed diesel fuel is subject to fuel use tax if it’s used for a taxable purpose. Dyed diesel may be subject to sales and use tax if not subject to fuel tax.

Federal and state law prohibits the use of dyed diesel fuel in most licensed vehicles and in unlicensed vehicles equipped for highway use. This includes vehicles that never leave private property or that operate entirely on job sites or Forest Service roads. Even occasional use of dyed diesel will contaminate a fuel tank and is against the law.

Diesel fuel, undyed

Undyed diesel can be used for any purpose, including operating or propelling a motor vehicle on public (“taxable”) highways. It includes state and federal fuel taxes in the purchase price. Some jurisdictions, like Oregon, charge a weight/distance tax on commercial vehicles instead of a fuel tax on undyed diesel.

Highway (IC §63-2401)

In Idaho, a roadway open for use by the public and maintained by a federal government agency or the state of Idaho or its political subdivisions (e.g., county, city, agency, district). Highways can be made of concrete, asphalt, gravel, composition, dirt, or other materials.

IFTA Fleet Consolidation

You can merge multiple IFTA fleets into one after getting approval from the IFTA commissioners of the affected jurisdictions. After consolidation, you’ll need to report to one base jurisdiction.

IFTA-qualified vehicles (R245)

An IFTA-qualified vehicle is designed to transport persons or property and is:

  • A power unit with two axles and a gross vehicle weight (or registered gross vehicle weight) of more than 26,000 pounds, or
  • A power unit with three or more axles, regardless of weight, or
  • A tractor-trailer combination with a combined gross vehicle weight (or registered gross vehicle weight) of more than 26,000 pounds.

If a vehicle doesn’t qualify, it can’t be included in an IFTA fleet, display an IFTA decal, or have its distance or gallons included on an IFTA fuel tax return.

Vehicles that don’t qualify include: Recreational vehicles (as defined in R248), motor homes, pickup trucks with attached campers, and buses that are used exclusively for personal pleasure.

Individual Vehicle Distance and Fuel Report (IVDR)

A single document you use to record the distance traveled and fuel consumed by each qualified vehicle in your IFTA fleet. This can be printed on the outside of a trip envelope filled out by the driver.

International Registration Plan (IRP)

An agreement by the IFTA jurisdictions and the District of Columbia that apportions registration fees based on total distance operated in all jurisdictions.

Jurisdiction (R227)
  • A state of the United States or the District of Columbia;
  • A province or territory of Canada; or
  • A state, territory, or agency of Mexico.
Miles per gallon (MPG)

Total gallons of fuel consumed divided into total miles traveled. For IFTA returns, this includes all fuel used by the IFTA fleet vehicles, regardless of where or how the fuel was acquired. Total miles are miles traveled everywhere, including off-highway miles and miles driven under a temporary permit for fuels tax.

Nontaxable distance

In Idaho, nontaxable distance is when a vehicle is either operating under a temporary fuels tax trip permit or driven off-highway and therefore not subject to motor fuel taxes. Each jurisdiction has its own definition of nontaxable distance.

Off-highway miles (Idaho only)

Any miles not driven on a highway.

Over-the-road (OTR) fuel purchases

Fuel placed directly into the main supply tank of a vehicle that includes the jurisdiction’s fuel tax.

Penalty and interest

If you don’t file, file late, or don’t pay your tax by the due date of the return, penalty and interest will be charged. Penalty is calculated at 10% of the tax due or $50, whichever is greater. Interest is due for each month the return is late according to the postmark. (One day late in a month makes the return late for the entire month).

If no tax is due for a jurisdiction, no interest is due. If you overpay, no interest is added to your refund. The Form 3150 instructions has a chart for the applicable interest rate.

If you make a partial payment, it’s credited first to any interest, second to tax, and then to the penalty. For example: You file a return which is due April 30, 2017 with a tax due of $1,000, but you don’t file it until June 7, 2017. You’ll be charged a penalty of $100 and interest of $20 (one day or more into the month is considered a full month). The total due is $1,120. If the payment is $1,000 it would be applied as follows: Interest: $20 + Tax: $980 + Balance due: $120 ($20 tax plus the $100 penalty). 

Interest continues to apply to the unpaid tax balance of $20 until it is paid in full.

Power take-off (PTO) equipment

Vehicle-mounted equipment that’s powered by the main engine that also propels a motor vehicle. Examples include: trash compactors, concrete mixers, sewage pumps, conveyors, or loading/offloading devices on vehicles.

Special fuels

In Idaho, special fuels includes diesel, biodiesel, biodiesel blends, propane, and natural gas. (IC §63-2401)

Statute of limitations

The time period during which either you or a jurisdiction can change the information reported on an original return and claim additional tax due or a refund. In Idaho, the statute of limitations is three years from the due date of the return, or the date it was filed, whichever is later.

Tax-paid gallons

These are gallons of fuel that have a jurisdiction’s fuels tax included in the purchase price. It can include fuel bought at retail stations or fuel delivered in bulk.

Motor fuel bought from an Indian-owned retail outlet in Idaho might not include the Idaho motor fuels tax. If the fuel doesn’t include the tax, it doesn’t qualify as an Idaho tax-paid purchase unless authorized in an agreement between the state and a specific tribe (Idaho Code sections 63-2444 or 67-4002.) Read about Idaho Fuel Purchased on Indian Reservations or contact us.

Temporary decal permits

The base jurisdiction can issue you a 30-day IFTA temporary decal permit valid for all member jurisdictions if you’re a licensee in good standing. You can carry this instead of displaying the annual decals. The base jurisdiction can charge you an administrative fee to cover the cost of issuance. Temporary decal permits:

  • Must be vehicle-specific
  • Must show an expiration date
  • Must be carried in the vehicle (but don’t have to be displayed)
Temporary fuels tax trip permit (temporary permit)

A temporary permit allows conditional travel in a jurisdiction. You can buy it at a port of entry or from an authorized permit agent on a trip-by-trip basis.

Other temporary permits include ones for temporary registration fees, overweight permits, and overlength permits. You can buy them in any combination, and they’re governed by the laws of the jurisdiction that issues them.

In Idaho, temporary permits expire when the vehicle they are purchased for leaves Idaho or at the end of a specified time period, whichever occurs first.

Reference

Fuels Tax and IFTA

Contact information for questions or help with our Fuels Tax or the International Fuel Tax Agreement (IFTA).

Fuels Tax

DepartmentContact Information
Fuel distributor reporting and record keepingFTRA@tax.idaho.gov
Electronic filing, including the required XML specificationsSubmit a question
(208) 332‑6632 [Boise]
(800) 972‑7660, ext. 6632 [Toll‑free]
Idaho fuel distributor licensing requirementspermitprocessing@tax.idaho.gov
Report noncomplianceFTRA@tax.idaho.gov
Motor fuels tax refund208-488-2089 for Bille Pierson
Form 75 fuels tax questionspermitprocessing@tax.idaho.gov
(208) 334‑7773 [Boise]
(800) 972‑7660, ext. 7773 [toll‑free]
(208) 334‑7830 [Boise]
(800) 972‑7660, ext. 7830 [toll‑free]
Fuels Tax Policytaxpolicy@tax.idaho.gov
(208) 334‑7855 [Boise]
(800) 972‑7660, ext. 7855 [toll‑free]

IFTA

DepartmentContact Information
Help with IFTA licenses, decals, returnsSubmit a question
(208) 334‑7806 [Boise]
(800) 972‑7660, ext. 7806 [toll‑free]
Form 75 questions (if filed with an IFTA return)(208) 334‑7806 [Boise]
(800) 972‑7660, ext. 7806 [toll‑free]
IFTA Compliance Unit(208) 639‑3219 [Boise]
(800) 972‑7660, ext. 3219 [toll‑free]
fax (208) 334‑7678 [fax]
IFTA Audit Unit(208) 488-2089 [Boise]
(208) 332‑4081 [Boise]
(800) 972‑7660, ext. 4081 [toll‑free]
fax (208) 332‑6619 [fax]
Fuels Tax Policytaxpolicy@tax.idaho.gov
(208) 334‑7855 [Boise]
(800) 972‑7660, ext. 7855 [toll‑free]
fax (208) 334‑7844 [fax]
Fuel purchased from an Idaho Indian reservation(208) 334‑7855 [Boise]
(800) 972‑7660, ext. 7855 [toll‑free]
(208) 332‑4081 [Boise]
(800) 972‑7660, ext. 4081 [toll‑free]

Mailing Addresses

IFTA forms & publications
Idaho State Tax Commission
PO Box 36
Boise ID 83722-0410

Commercial Vehicle Services
Idaho Transportation Department
PO Box 7129
Boise ID 83707-7129

Other State Agencies

Idaho Transportation Department
Call: (208) 334-8000 Boise

trucking.idaho.gov
Call: (208) 334-8611 Boise
Fax: (208) 334-2006

Vehicle Titles
Call: (208) 334-8663 Boise
Fax: (208) 334-8658

Idaho Ports of Entry
Call: (208) 334-8688 Boise
Fax: (208) 334-8696

Commercial Vehicle Section, Idaho State Police
Call: (208) 884-7220 Boise
Fax: (208) 884-7192

Federal Agencies

Federal Highway Administration
Call: (208) 334-1843 Boise
Fax: (208) 334-1691

Federal Motor Carrier Safety Administration
Call: (208) 334-1842 Boise
Fax: (208) 334-1691

IFTA Licenses Audits

IFTA rules requires Idaho to audit a certain percentage of its accounts each year. This means your chances of being audited are good.

The Tax Commission randomly selects IFTA licensees for audit based on IFTA Agreement requirements. If you’re selected, an auditor will contact you at least 30 days before the audit. IFTA audits are usually conducted along with International Registration Plan (IRP) audits, using the same audit periods.

If you have general questions about IFTA or IRP audits, please contact the Fuel Tax and Registration Fee (FTRF) Audit Unit.

The statute of limitations for Idaho licensees is three years but can be extended by mutual consent. This means that your audit should normally cover a period of three years or less. After the audit, we’ll send you a report by mail. We’ll also send a summary of the audit findings to any member jurisdiction affected by the audit. Idaho will collect any fuel taxes, penalty, and interest you owe and transmit the funds to the appropriate jurisdictions, or refund any overpayment you’re due from Idaho and other member jurisdictions.

Keep accurate records

You must keep accurate fuel and mileage records to avoid owing more tax. You should have original documents supporting the mileage traveled in each jurisdiction, as well as original fuel receipts. You must keep these records for at least four years.

Insufficient, inadequate records (P570) and audit adjustments (A350 and A360)

If you don’t provide adequate fuel and mileage records to the auditor, the Tax Commission may make adjustments to the amount of your tax due or refund. Not providing any records may result in an inadequate records assessment. An inadequate records assessment could mean that your IFTA fleet MPG is reduced by as much as 20 percent. Poor records for an individual vehicle may result in an audit adjustment for that vehicle. The adjustment can be based on filing history, records from third parties, or industry averages. The specific vehicle may also have its MPG reduced by 20 percent or to 4.00 MPG. The adjustment may be the final determination, unless you can provide more information to show that it’s incorrect.

 

Request for a redetermination and appeal (R1400)

You can request a redetermination of the IFTA audit results we issued. You must file your request for redetermination in writing within 30 days after the audit report date. If you don’t make a request within 30 days, the audit result is final and no change can be made to the audit findings.

Once you’ve filed your redetermination request, we’ll give you a reasonable amount of time to submit more information to support your request. Your request may be forwarded to our Appeals unit for a decision. You can request an informal hearing and appear in person or be represented. You can produce witnesses, documents, or other information to support your appeal. The Tax Commission will send you the results of your redetermination request.

You can appeal the Tax Commission’s decision to the Idaho Board of Tax Appeals or an Idaho district court. If you still disagree with the decision, you can request any or all member jurisdictions to audit your records.

Each jurisdiction can accept or deny the request. Each jurisdiction that accepts will audit distance traveled and fuel purchases in its jurisdiction that you reported to Idaho during the audit periods. You must make your records available at a place chosen by those member jurisdictions.

These audit requests for redetermination will proceed under the fuels tax laws of that jurisdiction.

 

IFTA Licenses Records

Individual Vehicle Distance Record (IVDR) and summaries

IFTA requires you to:

  • Keep distance and fuel records for every vehicle and trip,
  • Keep monthly distance and fuel summaries separately for each vehicle and separate each vehicle’s distance and fuel by jurisdiction, and
  • Separate each jurisdiction’s distance into taxable and nontaxable distance.
    Note: Each jurisdiction defines taxable and nontaxable distance differently.

IVDRs must include the following distance information:

  • Beginning and ending dates of the trip
  • Origin and destination of the trip
  • Route of travel
  • Beginning and ending odometer or hubometer readings for each trip
  • Total trip distance
  • Trip distance by jurisdiction
  • Vehicle unit or identification number

IVDRs must include the following fuel information for over-the-road (OTR) purchases:

  • Date of each fuel purchase
  • Name and address of the person who sold or gave you the fuel
  • Number of gallons received
  • Type of fuel
  • Price per gallon or total price of the fuel
  • Vehicle unit or identification number that the fuel was placed in

See the IFTA Procedures Manual: P500, Record-keeping on the IFTA website

Distance record-keeping tips

When listing delivery locations outside of the city, use the name of the nearest city. Indicate road distance and direction from the city. For example, instead of Joe’s Warehouse, 10 road miles west of Boise ID, list “Boise ID plus 10 west.”

Use actual distance traveled, not just the distance between cities. If a trip starts from a business on the west side of Boise and you travel into the middle of the city to pick up freight, include this distance. You must document all distance, including nonrevenue (deadhead, bobtail, etc.) distance.

Don’t rely only on map or computer program distances, because they are often the shortest and most direct routes between locations and may not reflect the actual distance driven. This can make your miles per gallon (MPG) calculations inaccurate, and an accurate IFTA return depends on an accurate MPG.

Fuel records

Report these taxable fuels on your IFTA return: gasoline, diesel, biodiesel, biodiesel blends, propane, compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen, electricity, and kerosene. Include other less commonly used fuels and blending components.

For a complete list of fuels that can be reported on an IFTA return, visit the IFTA website.

Tax-paid fuel purchases

In Idaho, fuels tax is included in the price you pay when you buy gasoline or undyed diesel fuel at the pump or have it delivered into a bulk tank. You must keep copies of all delivery tickets and receipts, and you must document all bulk fuel withdrawals.

Fuel purchased untaxed

When you buy motor fuel from an Indian-owned retail outlet in Idaho, the purchase price might not include the Idaho motor fuels tax, and so wouldn’t qualify as an Idaho tax-paid purchase, unless authorized in an agreement between the state and a specific tribe. See Idaho Code section 63-2444 or Idaho Code section 67-4002

Over-the-road (OTR) purchases

You must support OTR purchases with a receipt or invoice, a credit card receipt, or an automated vendor-generated invoice or transaction listing. All records used for fuel tax credit must include the information listed above for IVDRs. Keep these receipts to document tax-paid gallons.

A valid fuel receipt must show evidence that tax is paid directly to the applicable jurisdiction (R1000) to receive tax-paid credit.

You must compile separate totals for each fuel type, and keep separate records for retail fuel purchases and bulk fuel purchases. Also, your company name must appear on all receipts or invoices for tax-paid fuel purchases that you report on your return.

Vendors in all IFTA jurisdictions are required to issue a correct invoice and show that the jurisdiction’s fuels tax was paid to support the credit taken for tax-paid gallons on the IFTA return.

Bulk fuel

Bulk fuel is kept in a tank from which fuel is distributed to vehicles and equipment. It can also be distributed from mobile tanks. Both large and small fleets maintain bulk fuel tanks. A bulk fuel tank must have a method for measuring the number of gallons dispensed and a method for identifying the vehicles or equipment into which the fuel is dispensed. For more information, see pdf FT-2 Retail or Bulk Sales of Gasoline & Diesel Fuel.

Bulk fuel records

Keep detailed records of tax-paid fuel withdrawn from your bulk storage tanks. To get credit, the records must include:

  • Receipts for all deliveries. These must show the purchase price includes the fuel tax or show the licensee has paid the tax.
  • Quarterly inventory reconciliations for each tank
  • The capacity of each tank
  • Bulk withdrawal records from every bulk tank at each location, including:
    • The date of the withdrawal
    • The quantity of the fuel withdrawn
    • The type of fuel withdrawn
    • Vehicle unit or identification number that the fuel was placed in
  • Records must distinguish fuel placed into IFTA-qualified vehicles from other uses.

Summaries

Monthly summary records must include the following information:

  • Distance summaries for each vehicle showing the amount of travel in each jurisdiction.
  • Fuel summaries for each vehicle showing the amount of fuel purchased in each jurisdiction.

Record retention

Keep any records supporting the information you report on your tax returns for four years from the due date of the return or the actual date the return is filed, whichever is later.

IFTA Licenses Guides

Guide Name Revision Date
Dyed Diesel Usage 01-01-2012
Rudder Flutter excerpts 11-25-2019
Form FT-2 - Retail or Bulk Sales of Gasoline & Diesel Fuel - flyer 10-18-2022
Fuel Tax Holidays and Idaho-Based IFTA Carriers 05-27-2022
How to Prepare an Idaho International Fuel Tax Agreement (IFTA) Return 10-11-2024
IFTA Tips for Renewal and Return Filing - flyer 03-07-2022
Product Code List (for use with Form 1450) 05-04-2022