The International Fuel Tax Agreement (IFTA) is an agreement between the member jurisdictions (all contiguous states, District of Columbia and participating Canadian provinces) to simplify the reporting of motor fuel taxes by interstate motor carriers. IFTA reporting significantly reduces the paperwork and standardizes motor fuel tax reporting for both carriers and jurisdictions.

Before adoption of IFTA, motor carriers operating in multiple jurisdictions were required to apply for a license, file and remit their fuel taxes in accordance each jurisdiction’s laws. Complying with these varied requirements was a difficult and extremely time consuming process for an interstate carrier.

• Authorizes each qualified vehicle to travel in all IFTA jurisdictions without having to purchase fuel tax permits at the ports of entry.
• Standardize reporting of use fuel taxes.
• You only have to file only one set of tax forms quarterly through your base jurisdiction (Arizona) instead of filing in each jurisdiction you travel.
• Audit administrative costs are reduced since fuel tax audits are performed by your base state on behalf of all member jurisdictions.

IFTA – Qualified Vehicles are vehicles that travel in more than one jurisdiction, and are designed or maintained to transport persons or property and:

• Have two axles and registered gross vehicle weight of more than 26,000 lbs; or
• Have three or more axles regardless of weight; or
• Used in combination when the weight of such combination exceeds 26,000 lbs. gross vehicle weight

Below is a list of everything required to open a new IFTA account. Once you have completed and signed all of the forms and applications, and met all requirements mail them to:

Or, you may submit the required documents to a third party provider authorized by MVD to perform IFTA transactions.

Requirements:

• $10.00 filing fee
• IFTA/IRP Application
• Record Keeping Agreement
• Lease Agreement Certificate, if applicable
• Power of Attorney–Motor Carrier, (if applicable)
• USDOT number (apply to Federal Motor Carrier Safety Administration)
• Operating Authority (MC number) – This number must be active before you submit your application (apply to Federal Motor Carrier Safety Administration)
• Evidence of your established place of business in Arizona, or proof of residency in Arizona
  • Examples of acceptable proof for Established Place of Business:
    • Real estate ownership document
    • Real estate lease agreement
    • Rent or Mortgage payment receipt
    • Utility bill with applicants name on it
    • A current copy of the IRS form 2290
    • A copy of your articles of incorporation
  • Examples of acceptable proof of Residency:
    • Current Arizona Drivers License
    • Vehicle titles in applicants name is an Arizona title
    • A copy of your Arizona personal tax return
    • A copy of your Articles of Incorporation, with the principal owner listed as a resident of Arizona.

An IFTA licensee must file an IFTA Use Fuel Tax Report quarterly. This report details jurisdictional miles traveled and motor fuel purchased in each jurisdiction for a quarter.

Online Filing: To ease your IFTA quarter tax filing, please file your reports online. The online system will automatically calculate tax due to each jurisdiction entered. After signing onto the system, just click on the Help tab for step by step instructions on how to electronically file, pay and submit the IFTA report.

If you owe any additional fuel taxes you may pay online at the time you submit the report.

If you are not able to file online, you may complete the IFTA Use Fuel Tax Report form # 70-4434, and mail it to the Fuel Tax Reporting Unit with any required payment.

MVD is then responsible for the distribution of taxes to the appropriate member jurisdictions where you traveled, based on information received from your tax report.

NOTE:    A quarterly filing is required even if you had no miles traveled for the quarter.

Quarters	Report Due Date
January – March	April 30th
April – June	July 31st
July – September	October 31st
October – December	January 31st

• You must read, understand, and submit a signed copy of the Record Keeping Agreement at the time of application for an IFTA license.
• After the license is issued, you will be required to keep and maintain Individual Vehicle Mileage & Fuel Report (IVMR) form # 96-0531
• Mileage and fuel data records must be maintained on each vehicle for each trip. Monthly and quarterly mileage summaries must also be maintained which separate miles for each vehicle for each jurisdiction in which the vehicle operated. Each jurisdiction’s miles must be separated into taxable and non-taxable miles.
• You must maintain complete records, supported by receipts of all fuel purchases as reported on the quarterly IFTA tax report. Fuel purchases must be supported by a receipt, invoice, or credit card receipt, or microfilm/microfiche of the receipt or invoice.