US, IFTA Agreement

[Sapphire Capital]

ARTICLES OF
AGREEMENT
Effective July 1, 1998 Last Revised January 2008
TEXTUAL NOTE
The International Fuel Tax Agreement Articles of Agreement has been subject to amendments
under Section R1600 of the Agreement. It is the purpose of this publication to provide a
commentary when sections have been amended.
The official commentary voted on by the IFTA membership is shown italics. All commentaries
initiate from Consensus Board interpretations of issues or history/intent segments of IFTA
ballots.
An asterisk (*) next to a Section number indicates commentary to that Section.
IFTA ARTICLES OF AGREEMENT 1 January 1996
Effective July 1, 1998
IFTA ARTICLES OF AGREEMENT 2 January 1996
Effective July 1, 1998
Last Revised January 2007
LIST OF ARTICLES
ARTICLE I AGREEMENT PRINCIPLE ......................................................................................8
ARTICLE II DEFINITIONS..........................................................................................................11
ARTICLE III APPLICATION AND RENEWAL..............................................................................19
ARTICLE IV CANCELLATION, REVOCATION, AND SUSPENSION..........................................26
ARTICLE V LESSORS/LESSEES AND HOUSEHOLD GOODS CARRIERS.............................29
ARTICLE VI VEHICLE IDENTIFICATION....................................................................................32
ARTICLE VII RECORDS REQUIREMENTS.................................................................................38
ARTICLE VIII TAXATION OF MOTOR FUELS..............................................................................40
ARTICLE IX REPORTING...........................................................................................................44
ARTICLE X TAX PAID PURCHASES.........................................................................................50
ARTICLE XI CREDITS AND REFUNDS......................................................................................53
ARTICLE XII ASSESSMENT AND COLLECTION........................................................................56
ARTICLE XIII AUDITS...................................................................................................................64
ARTICLE XIV APPEAL PROCEDURES........................................................................................67
ARTICLE XV MEMBERSHIP........................................................................................................70
ARTICLE XVI AMENDMENTS.......................................................................................................76
ARTICLE XVII ISSUE PAPERS AND CONSENSUS BOARD INTERPRETATIONS ......................82
ARTICLE XVIII ADMINISTRATION .................................................................................................84
ARTICLE XIX COOPERATION WITH REGIONAL FUEL TAX AGREEMENT...............................88
ARTICLE XX ADOPTION OF RECODIFICATION OF IFTA MANUALS .......................................89
ARTICLE XXI INTERNATIONAL FUEL TAX ASSOCIATION, INC. (“IFTA, INC.”)
CLEARINGHOUSE..................................................................................................91
IFTA ARTICLES OF AGREEMENT 3 January 1996
Effective July 1, 1998
Last Revised January 2007
TABLE OF CONTENTS
R100 AGREEMENT PRINCIPLE........................................................................................8
R110 TITLE.........................................................................................................................8
R120 GOVERNING DOCUMENTS.....................................................................................8
R130 PURPOSE.................................................................................................................8
R140 COOPERATIVE ADMINISTRATION .........................................................................9
R150 ONE LICENSE AND ONE BASE JURISDICTION .....................................................9
Commentary to Article I...........................................................................................................10
R200 DEFINITIONS............................................................................................................11
Commentary to Article II..........................................................................................................15
R300 APPLICATION AND RENEWAL ...............................................................................19
R305 LICENSING REQUIREMENT ....................................................................................19
R310 TRIP PERMITS..........................................................................................................19
R315 APPLICATION FOR LICENSE ..................................................................................19
R320 DESIGNATION OF LICENSEE..................................................................................19
R325 BASE JURISDICTION DETERMINATION.................................................................19
R330 APPLICATION PROCESSING ..................................................................................20
R335 NON-ISSUANCE OF LICENSE .................................................................................20
R340 BOND REQUIREMENT.............................................................................................20
R345 LICENSE RENEWAL.................................................................................................20
R350 NOTIFICATION TO MEMBER JURISDICTIONS.......................................................21
R355 FEES.........................................................................................................................21
R360 PROVIDING INFORMATION TO LICENSEES..........................................................21
R365 EFFECT OF AMENDMENTS TO AGREEMENT .......................................................21
R370 LICENSEE RIGHT OF APPEAL ................................................................................22
Commentary to Article III.........................................................................................................23
R400 CANCELLATION, REVOCATION, AND SUSPENSION............................................26
R410 LICENSE CANCELLATION.......................................................................................26
R420 LICENSE SUSPENSION AND REVOCATION ..........................................................26
R430 LICENSE REINSTATEMENT ....................................................................................26
Commentary to Article IV ........................................................................................................28
R500 LESSORS/LESSEES AND HOUSEHOLD GOODS CARRIERS...............................29
R510 RENTAL/LEASING....................................................................................................29
R520 HOUSEHOLD GOODS CARRIERS...........................................................................29
R530 INDEPENDENT CONTRACTORS.............................................................................30
R540 FILING OF LEASES ..................................................................................................30
Commentary to Article V .........................................................................................................31
IFTA ARTICLES OF AGREEMENT 4 January 1996
Effective July 1, 1998
Last Revised January 2007
R600 VEHICLE IDENTIFICATION......................................................................................32
R605 IDENTIFICATION REQUIREMENT ...........................................................................32
R610 LICENSE PERIOD.....................................................................................................32
R615 FORM AND CONTENT .............................................................................................32
R620 POSSESSION OF LICENSE.....................................................................................32
R625 DISPLAY OF DECALS ..............................................................................................32
R630 DISPLAY OF RENEWAL CREDENTIALS .................................................................33
R635 DISPLAY OF MULTIPLE CREDENTIALS..................................................................33
R640 TRANSFER OF DECALS ..........................................................................................33
R650 TEMPORARY PERMITS ...........................................................................................33
R655 GRACE PERIOD .......................................................................................................33
R660 NON-COMPLIANCE..................................................................................................34
Commentary to Article VI ........................................................................................................35
R700 RECORDS REQUIREMENTS ...................................................................................38
Commentary to Article VII .......................................................................................................39
R800 TAXATION OF MOTOR FUELS................................................................................40
R810 QUALIFIED MOTOR VEHICLES...............................................................................40
R820 TAXABLE FUEL USE................................................................................................40
R830 EXEMPT FUEL USE..................................................................................................40
R840 REPORTING INTRASTATE TRAVEL .......................................................................41
Commentary to Article VIII ......................................................................................................42
R900 REPORTING .............................................................................................................44
R910 REPORTING REQUIREMENT ..................................................................................44
R920 FILING WITH BASE JURISDICTION ........................................................................44
R930 REPORTING PERIOD...............................................................................................44
R940 TAX RETURN FORMAT............................................................................................45
R950 REQUIRED INFORMATION......................................................................................45
R960 DUE DATE ................................................................................................................45
R970 LATE FILING.............................................................................................................47
Commentary to Article IX ........................................................................................................48
R1000 TAX PAID PURCHASES ...........................................................................................50
R1010 RETAIL FUEL PURCHASES.....................................................................................50
R1020 BULK FUEL PURCHASES ........................................................................................50
Commentary to Article X .........................................................................................................52
IFTA ARTICLES OF AGREEMENT 5 January 1996
Effective July 1, 1998
Last Revised January 2007
R1100 CREDITS AND REFUNDS ........................................................................................53
R1110 CASH REFUNDS.......................................................................................................53
R1120 APPLICATION OF CREDITS ....................................................................................53
R1130 AUTHORIZATION TO WITHHOLD REFUNDS .........................................................53
R1140 CONDITIONS FOR ISSUANCE OF REFUNDS.........................................................54
R1150 INTEREST ON REFUNDS ........................................................................................54
Commentary to Article XI ........................................................................................................55
R1200 ASSESSMENT AND COLLECTION..........................................................................56
R1210 ASSESSMENT ..........................................................................................................56
R1220 PENALTIES...............................................................................................................57
R1230 INTEREST.................................................................................................................57
R1240 COLLECTION PROCEDURES..................................................................................58
R1250 RESPONSIBILITIES IN BANKRUPTCY PROCEEDINGS .........................................59
R1260 WAIVER OF PENALTIES AND INTEREST...............................................................59
R1270 REVOCATION OF LICENSE.....................................................................................59
Commentary to Article XII .......................................................................................................61
R1300 AUDITS .....................................................................................................................64
R1310 LICENSEE AUDITS...................................................................................................64
R1320 UNLICENSED CARRIER AUDITS.............................................................................64
R1330 AUDIT REQUIREMENTS ..........................................................................................64
R1340 AUDIT MANUAL ........................................................................................................64
R1350 REVIEW/REVISION OF AUDIT REQUIREMENTS ...................................................64
R1360 RE-AUDIT AND RE-EXAMINATION..........................................................................65
R1370 JOINT AUDITS..........................................................................................................65
Commentary to Article XIII ......................................................................................................66
R1400 APPEAL PROCEDURES ..........................................................................................67
R1410 REQUEST FOR HEARING........................................................................................67
R1420 NOTICE OF HEARING..............................................................................................67
R1430 PROCEDURES FOR HEARING................................................................................67
R1440 NOTICE OF FINDINGS.............................................................................................67
R1450 FURTHER REQUESTS FOR APPEAL......................................................................68
Commentary to Article XIV......................................................................................................69
R1500 MEMBERSHIP ..........................................................................................................70
R1505 APPLICATION FOR MEMBERSHIP..........................................................................70
R1510 CONDITIONS FOR MEMBERSHIP...........................................................................70
R1515 ADOPTING RESOLUTION........................................................................................70
R1520 APPROVAL OF ADOPTING RESOLUTION..............................................................71
R1525 MEMBERSHIP EFFECTIVE DATE............................................................................71
R1530 IMPLEMENTATION EFFECTIVE DATE....................................................................71
IFTA ARTICLES OF AGREEMENT 6 January 1996
Effective July 1, 1998
Last Revised January 2007
R1535 IMPLEMENTING LICENSING IN THE NEW JURISDICTION ...................................71
R1540 FAILURE TO IMPLEMENT........................................................................................71
R1545 ACTIVE MEMBERSHIP STATUS..............................................................................72
R1550 MEMBERSHIP CANCELLATION ..............................................................................72
R1555 COMPLIANCE MATTERS.........................................................................................72
Commentary to Article XV.......................................................................................................74
R1600 AMENDMENTS.........................................................................................................76
R1605 SUBMISSION OF PROPOSALS FOR COMMENT....................................................76
R1610 SUBMISSION OF PROPOSALS WITHOUT PRELIMINARY COMMENT..................76
R1615 OPEN MEETING DISCUSSION................................................................................76
R1620 “SHORT TRACK” VOTING........................................................................................77
R1625 “SHORT TRACK” 30-DAY BALLOT PROCEDURES.................................................77
R1630 “FULL TRACK” 90-DAY BALLOT PROCEDURES ....................................................77
R1635 VOIDED “SHORT TRACK” PROPOSALS.................................................................78
R1640 AMENDMENTS TO PRELIMINARY BALLOTS .........................................................78
R1645 FINAL BALLOT PROPOSAL REQUIREMENTS........................................................78
R1650 ACCEPTANCE OF AMENDMENTS..........................................................................79
R1655 EFFECTIVE DATE OF AMENDMENTS ....................................................................79
R1660 WITHDRAWAL OF AMENDMENT PROPOSALS .....................................................79
Commentary to Article XVI......................................................................................................81
R1700 ISSUE PAPERS AND CONSENSUS BOARD INTERPRETATIONS .........................82
R1710 ISSUE PAPERS .........................................................................................................82
R1720 CONSENSUS BOARD INTERPRETATIONS.............................................................82
Commentary to Article XVII.....................................................................................................83
R1800 ADMINISTRATION....................................................................................................84
R1810 INTERNATIONAL FUEL TAX ASSOCIATION, INC...................................................84
R1820 REPOSITORY...........................................................................................................86
Commentary to Article XVIII....................................................................................................87
R1900 COOPERATION WITH REGIONAL FUEL TAX AGREEMENT.................................88
Commentary to Article XIX......................................................................................................88
R2000 ADOPTION OF RECODIFICATION OF IFTA MANUALS .........................................89
Commentary to Article XX.......................................................................................................90
IFTA ARTICLES OF AGREEMENT 7 January 1996
Effective July 1, 1998
Last Revised January 2007
R2100 INTERNATIONAL FUEL TAX ASSOCIATION, INC. (“IFTA, INC.”)
CLEARINGHOUSE....................................................................................................91
R2110 IFTA, INC. CLEARINGHOUSE..................................................................................91
R2120 REQUIRED EXCHANGE OF LICENSEE DEMOGRAPHIC AND
TRANSMITTAL DATA ...............................................................................................91
Commentary to Article XXI......................................................................................................93
IFTA ARTICLES OF AGREEMENT 8 January 1996
Effective July 1, 1998
Last Revised January 2007
*See Textual Note on page 1.
ARTICLE I
R100 AGREEMENT PRINCIPLE
R110 TITLE
This multijurisdictional agreement shall be referred to, cited, and known as the
International Fuel Tax Agreement, referred to hereinafter as "the Agreement".
*R120 GOVERNING DOCUMENTS
The Audit Manual and Procedures Manual authorized by this Agreement are equally
expressive of, and constitute evidence of this multijurisdictional agreement. The provisions
of all three IFTA documents shall be equally binding upon the member jurisdictions and
IFTA licensees and are known as the IFTA governing documents.
*R130 PURPOSE
It is the purpose of this Agreement 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.
.100 To effect this purpose, the Agreement implements three core provisions that, as
between states of the United States, constitute an interstate compact approved by
Congress in the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA).
These core provisions, incorporated by ISTEA, are:
.005 The base jurisdiction concept, which allows a licensee to report and to pay
motor fuel use taxes to a base jurisdiction for distribution to other member
jurisdictions in which the licensee traveled and incurred motor fuel use tax
liability.
.010 Retention of each jurisdiction’s sovereign authority to determine tax rates,
exemptions and exercise other substantive tax authority.
.015 A uniform definition of the vehicles to which the Agreement applies.
.200 To enable participation in this Agreement and to supplement the core provisions,
the relationship among the member jurisdictions is further expressed in:
.005 Reciprocal statutes enacted in member jurisdictions authorizing
participation in IFTA, and
IFTA ARTICLES OF AGREEMENT 9 January 1996
Effective July 1, 1998
Last Revised January 2007
.010 Provisions in the Agreement reflecting a reciprocal administrative
agreement for the administration of the IFTA program. These
administrative provisions are subject to amendment and interpretation as
provided in this Agreement.
*R140 COOPERATIVE ADMINISTRATION
It is the purpose of this Agreement to enable participating jurisdictions to act cooperatively
and provide mutual assistance in the administration and collection of motor fuels use
taxes. By virtue of signing an IFTA license application or a renewal containing the
certification set out in P160, a person who applies for and operates under an IFTA license
agrees to be bound by the duties and obligations of licensees as set forth in the
Agreement currently and as it may be amended. The base jurisdiction must enforce those
duties and obligations within its jurisdiction. The member jurisdictions may also enforce
those duties and obligations within their jurisdictions. The licensee acknowledges that, in
addition to the licensee's duties and obligations under the Agreement, the licensee is also
subject to the laws, rules and regulations of all jurisdictions in which it operates.
*R150 ONE LICENSE AND ONE BASE JURISDICTION
It is the purpose of this Agreement 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 have the primary responsibility for administering this
Agreement and executing its provisions with respect to such licensee.
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IFTA ARTICLES OF AGREEMENT 10 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article I
R120 IFTA Ballot 2-1996 added IFTA Articles of Agreement Section R120 to clarify that all of the IFTA governing documents are
equally binding on the member jurisdictions and IFTA licensees and was effective July 1, 1998.
R130 Ballots 90-267-1 and 90-267-2, passed in March 1991, amended the many references to U.S. measurement units such as
miles and gallons, and added additional language in the Agreement and Procedures Manual to allow the Canadian provinces
to join IFTA. IFTA Articles of Agreement Sections which were amended by these ballots are: R130, R212, R224, R245,
R263, R325, R510.100, R830, R840, R930.200, R960.100, R1150 and R1230.
R130 IFTA Ballot 1-2001 amended IFTA Articles of Agreement Section R130 to embody the core principles identified in the Final
Report of the State Legislation and Constitutional Provisions Project conducted by NCSL and was effective July 1, 2003.
R140 IFTA Ballot 1-2001 amended IFTA Articles of Agreement Section R140 to embody the core principles identified in the Final
Report of the State Legislation and Constitutional Provisions Project conducted by NCSL and was effective July 1, 2003.
R150 IFTA Ballot 1-2001 amended IFTA Articles of Agreement Section R150 to embody the core principles identified in the Final
Report of the State Legislation and Constitutional Provisions Project conducted by NCSL and was effective July 1, 2003.
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IFTA ARTICLES OF AGREEMENT 11 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE II
R200 DEFINITIONS
*R203 Annual Tax Reporting Period means January 1 through December 31.
R206 Applicant is a person in whose name the uniform application for licensing is filed with a
base jurisdiction for the purpose of motor fuel tax reporting under the provisions of this
Agreement.
*R209 Audit means:
.100 The physical examination of the source documentation of the licensee’s
operations either in detail or on a representative sample basis;
.200 The evaluation of the internal controls of the licensee’s accounting system and
operations; and
.300 The accumulation of sufficient competent evidential matter to afford a
reasonable basis for determining whether or not there are any material
differences between actual and reported operations for each affected jurisdiction
in accordance with the provisions of the International Fuel Tax Agreement and all
affected jurisdictions’ fuel use tax laws.
*R212 Base Jurisdiction means the member jurisdiction where qualified motor vehicles are
based for vehicle registration purposes and
.100 Where the operational control and operational records of the licensee's qualified
motor vehicles are maintained or can be made available; and
.200 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.
*R215 Cancellation means the termination of a license by the licensing jurisdiction pursuant to
Section R410.
R218 Commissioner means the official designated by the jurisdiction to be responsible for
administration of this Agreement.
IFTA ARTICLES OF AGREEMENT 12 January 1996
Effective July 1, 1998
Last Revised January 2007
R221 Fleet means one or more vehicles.
*R224 In-Jurisdiction Distance means the total number of miles or kilometers operated by a
licensee's qualified motor vehicles within a jurisdiction including miles/kilometers operated
under an IFTA temporary permit. In-jurisdiction distance does not include miles/kilometers
operated on fuel tax trip permit or exempted from fuel taxation by a jurisdiction.
*R227 Jurisdiction means a state of the United States of America, the District of Columbia, a
province or territory of Canada, or a state of the United Mexican States.
*R230 Lessee means the party acquiring the use of equipment with or without a driver from
another.
*R233 Lessor means the party granting the use of equipment with or without a driver to another.
R236 Licensee means a person who holds an uncancelled Agreement license issued by the
base jurisdiction.
*R239 Motor Fuels means all fuels placed in the supply tank of qualified motor vehicles.
R242 Person means an individual, corporation, partnership, association, trust, or other entity.
*R245 Qualified Motor Vehicle means a motor vehicle used, designed, or maintained for
transportation of persons or property and:
.100 Having two axles and a gross vehicle weight or registered gross vehicle weight
exceeding 26,000 pounds or 11,797 kilograms; or
.200 Having three or more axles regardless of weight; or
.300 Is used in combination, when the weight of such combination exceeds 26,000
pounds or 11,797 kilograms gross vehicle or registered gross vehicle weight.
Qualified Motor Vehicle does not include recreational vehicles.
R248 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 shall not be used in connection with
any business endeavor.
IFTA ARTICLES OF AGREEMENT 13 January 1996
Effective July 1, 1998
Last Revised January 2007
R251 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
license plate and a registration card or temporary registration containing owner and vehicle
data.
*R254 Quarterly Tax Reporting Period means a period of time consistent with the calendar
quarterly periods of January 1 - March 31, April 1 - June 30, July 1 - September 30, and
October 1 - December 31.
R257 Revocation means withdrawal of license and privileges by the licensing jurisdiction.
*R258 Roadside Enforcement means necessary action, by those persons within a jurisdiction,
charged with inspection or compliance checks of qualified vehicles being operated within
the jurisdiction. It includes any activity by authorized personnel at any permanent or
temporary weight or inspection site or any other location as deemed appropriate by the
jurisdiction.
R260 Suspension means temporary removal of privileges granted to the licensee by the
licensing jurisdiction.
*R263 Temporary Decal Permit means a permit issued by the base jurisdiction or its agent to be
carried in a qualified motor vehicle in lieu of display of the permanent annual decals. A
temporary decal permit is valid for a period of 30 days to give the carrier adequate time to
affix the annual permanent decals.
*R266 Total Distance means all miles or kilometers traveled during the tax 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.
R269 Weight means the maximum weight of the loaded vehicle or combination of vehicles
during the registration period.
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IFTA ARTICLES OF AGREEMENT 14 January 1996
Effective July 1, 1998
Last Revised January 2007
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IFTA ARTICLES OF AGREEMENT 15 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article II
R203 IFTA Ballot 9-1994 amended IFTA Articles of Agreement Sections R200 and R930.200 to define an annual reporting period
and to require jurisdictions only to notify other member jurisdictions in which a licensee operated during a prescribed period of
an annual reporting request by a licensee and was effective January 1, 1996.
R203 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R209 IFTA Ballot 4-2002 amended IFTA Articles of Agreement Section R209 to expand the definition of an audit and was effective
July 1, 2004.
[Editor’s Note: IFTA Ballot 15-2004 attempted to amend the Articles of Agreement, Section R209. However, IFTA Ballot 4-2002
had amended the same language effective July 1, 2004.]
R209 IFTA Ballot 4-2002 amended IFTA Articles of Agreement Section R209 to expand the definition of an audit and was effective
July 1, 2004.
R212 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R212 In July 1991, the membership unanimously ratified inclusion of Consensus Board Interpretation, Issue 4, as narrative to IFTA
Articles of Agreement Sections R212 and R510.200.
ISSUE: Whether an independent contractor based in an IFTA jurisdiction, but permanently leased to a carrier not based in an IFTA
jurisdiction, must be licensed as an IFTA licensee when the lease agreement between the lessor and lessee provides that the
lessee (carrier based in a non-IFTA jurisdiction) is responsible for reporting and remitting of the fuel use tax.
In the fact situation set forth in this issue, the lessors are located in Indiana and the lessees are located in non-IFTA
jurisdictions. The lease agreement specifically states that the lessees will report and pay the fuel use taxes. The lessees
would not qualify as IFTA licensees because they do not meet the requirement of "base jurisdiction" set forth in Section R212.
It has come to the attention of Indiana that other jurisdictions are ticketing such lessors' vehicles because they do not have an
IFTA decal or cab card. If such lessors were to become IFTA licensees in Indiana, they would simply be licensing to file
quarterly returns showing no operations because the lessees would be reporting and paying the fuel use tax to Indiana
pursuant to their annual motor carrier fuel tax permits. Apparently, the lessors are receiving tickets even though they are
carrying copies of their lease agreements that clearly show the non-IFTA carriers are responsible for reporting and remitting
the fuel use taxes. Further, the lessee is properly licensed in the other jurisdiction to report and pay the fuel tax, and the
appropriate credentials are being carried in the vehicle. It seems apparent that the licensing of these lessors as IFTA carriers
is unnecessary in light of the fact that they are leased to non-IFTA carriers. Indiana proposed that such lessors should not be
IFTA licensees.
BOARD INTERPRETATION:
The Board unanimously concurred with Indiana's Interpretation.
R212 In July 1991, the membership unanimously ratified inclusion of Consensus Board Interpretation, Issue 6, as narrative to IFTA
Articles of Agreement Sections R212, R224, R245, R800, R820, and R1000.
ISSUE: Can the State of Indiana allow buses tax-exempt status; if this is permitted, are all fuel purchases made by the buses in
Indiana fully refundable?
IFTA ARTICLES OF AGREEMENT 16 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article II Continued
BOARD INTERPRETATION:
The Board consensus was that a jurisdiction may have its own specific exemptions for types of vehicles. However,
jurisdictions are required to collect taxes and enforce fuel tax reporting pursuant to other jurisdictions' laws regarding vehicles
taxed in their jurisdictions. The Board agreed that in the case of a return being filed where there is a vehicle exemption, the
return would be prepared by the carrier to include miles traveled in the total miles field, not include those miles in the taxable
miles field, and the carrier would receive credit for any purchases made. The Board also agreed that various examples of
how to accommodate exemptions from other jurisdictions would be sent to the membership for review.
R215 IFTA Ballot 4-2004 amended the IFTA Articles of agreement, Section R215 to redefine cancellation and was effective July 1,
2006. Also see commentary to R410.
R224 IFTA Ballot 1-92 amended IFTA Articles of Agreement Section R224 to include miles operated under a temporary permit and
was effective January 1, 1993.
R224 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R224 In July, 1991, the majority of the membership concurred to include the commentary on miles traveled while under a trip permit
as narrative to IFTA Articles of Agreement Sections R224 and R263. The quote is as follows:
Miles traveled while utilizing a trip permit would be included in total miles traveled, and the miles would also be
reported as part of the total miles traveled in the applicable jurisdiction. However, the miles would not be included
as taxable miles traveled for that jurisdiction. Fuel purchases while traveling under a trip permit would be included
in total fuel consumed and should also be included in the tax-paid purchase column (if taxes were paid at the time
the fuel was purchased) under the appropriate jurisdiction.
R224 See commentary at IFTA Articles of Agreement Section R212 regarding vehicle exemptions.
R224 In July 2000, the membership ratified inclusion of Consensus Board Interpretation, Issue 56-99, as narrative to the IFTA
Articles of Agreement, Sections R224 and R830.100
ISSUE: Doesn’t a member jurisdiction have the responsibility to honor the exempt/nontaxable mile claim of one of its base carriers
when the carrier claims nontaxable miles from a member jurisdiction when it is clearly stated in the member jurisdiction’s fuels
tax code and annual IFTA Report?
BOARD INTERPRETATION:
Exempt/nontaxable miles or kilometers in any jurisdiction may be claimed on a licensee’s IFTA tax return filed in its base
jurisdiction. Such exempt miles or kilometers, if allowed by the law of the jurisdiction for which the exemption is claimed, may
be deducted from that jurisdiction’s total miles or kilometers to compute taxable miles or kilometers.
R227 IFTA Ballot 12-2001 amended IFTA Articles of Agreement Section R227 to add a state of the United Mexican States to the
definition of “Jurisdiction” and was effective January 1, 2003.
R230 IFTA Ballot 2-1993 was intended to better define the parties responsible for reporting and paying the fuel use taxes in shortterm
lease situations. The ballot added IFTA Articles of Agreement Sections R230 and R233 to define “Lessor” and
“Lessee”. The ballot was effective July 1, 1995. See commentary at IFTA Articles of Agreement Section R510 regarding
responsible party under lease agreements.
R233 See commentary at IFTA Articles of Agreement Section R230
IFTA ARTICLES OF AGREEMENT 17 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article II Continued
R239 IFTA Ballot 1-2001 amended IFTA Articles of Agreement Section R239 to embody the core principles identified in the Final
Report of the State Legislation and Constitutional Provisions Project conducted by NCSL and was effective July 1, 2003.
R245 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R245 See commentary at IFTA Articles of Agreement Section R212 regarding vehicle exemptions.
R245 IFTA Ballot 19-91 amended IFTA Articles of Agreement Section R245, clarifying the definition of a qualified motor vehicle,
with an effective date of December 15, 1992.
R245 In July 1992, the membership voted to include the Consensus Board Interpretation, Issue 12, as narrative to IFTA Articles of
Agreement R245.
ISSUE: North Carolina questions a portion of the definition of a qualified motor vehicle. North Carolina understands that the axles of
trailing units have no bearing and that the part of the definition alluding to number of axles applies only to the axles on the
power unit, irrespective of any trailing units. If a motor carrier has a power unit having two axles, weighing less than 26,000
pounds, but pulling a trailing unit, and the combination weighs less than 26,000 pounds, would such be a qualified motor
vehicle?
BOARD INTERPRETATION:
The Consensus Board Interpretation is that the axles of a trailing unit have no bearing on this definition. The part of the
definition alluding to the number of axles applies only to the axles on the power unit, irrespective of any trailing units. The
Board agreed that a power unit with two axles, pulling a trailing unit, with a combined gross or registered weight of 26,000
pounds or less is not a qualified motor vehicle. The first and second definitions of a qualified motor vehicle refer only to the
power unit. The third definition refers to the combination of the power unit and the trailing unit.
R245 Ballot 4-1993 amended IFTA Articles of Agreement Section R245 to more accurately reflect the reference to the kilograms.
In July 1992, the Audit Committee was assigned the responsibility to research the issue. Ballot 4-1993 resulted and was
effective January 1, 1994.
R254 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R258 IFTA Ballot 14-2005 amended the IFTA Articles of Agreement to add a definition of Roadside Enforcement and was
effective January 1, 2007.
R263 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R263 See commentary at IFTA Articles of Agreement Section R224 regarding miles traveled under temporary permit.
R263 IFTA Ballot 1-92 amended IFTA Articles of Agreement Section R263 to include distance operated under a temporary permit
effective January 1, 1993. Also see commentary to R650.
R263 See commentary at IFTA Articles of Agreement Section R650 regarding issuance of temporary permits in lieu of decals only.
R263 IFTA Ballot 14-2004 amended the IFTA Articles of Agreement Section R263 to clarify the language to state the temporary
permit is a temporary decal permit and was effective January 2006. Also, see commentary to R650.
R266 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.]
IFTA ARTICLES OF AGREEMENT 18 January 1996
Effective July 1, 1998
Last Revised January 2007
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IFTA ARTICLES OF AGREEMENT 19 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE III
APPLICATION AND RENEWAL
*R305 LICENSING REQUIREMENT
Any person based in a member jurisdiction operating a qualified motor vehicle(s) in two or
more member jurisdictions is required to license under this Agreement, except as
indicated in IFTA Articles of Agreement Sections R310 and R500.
R310 TRIP PERMITS
In lieu of motor fuel tax licensing under this Agreement, persons may elect to satisfy motor
fuels use tax obligations on a trip-by-trip basis.
R315 APPLICATION FOR LICENSE
A person shall file an application for licensing with the base jurisdiction. The fuel tax
license application shall have the content specified in the IFTA Procedures Manual Section
P100.
*R320 DESIGNATION OF LICENSEE
Tax licensing under this Agreement shall be in the name of the licensee. IFTA Articles
of Agreement Section R500 designates the party responsible for tax reporting and
payment of fuel taxes in the case of lessors/lessees, independent contractors, and
household goods agents.
*R325 BASE JURISDICTION DETERMINATION
An applicant not based in a member jurisdiction may make application for licensing to
any member jurisdiction in which it operates. The jurisdiction receiving such application
may accept or reject it. If licensed pursuant to this section, the licensee shall agree to
make operational records available for audit in the base jurisdiction, or pay the
reasonable per diem travel expenses for auditors to audit the records located outside of
the base jurisdiction, at the discretion of the base jurisdiction. A person licensed under
this section shall apply for an IFTA license to the jurisdiction in which it is based
immediately upon notification that the jurisdiction has become an IFTA member
jurisdiction. The license shall become effective the following license year.
IFTA ARTICLES OF AGREEMENT 20 January 1996
Effective July 1, 1998
Last Revised January 2008
*R330 APPLICATION PROCESSING
Upon receipt of an IFTA fuel tax license application from a new applicant, the base jurisdiction
should check all entries on the application to ensure that they are complete. If the base jurisdiction
feels more information is required, the licensee should immediately be contacted requesting the
required information. Upon being satisfied that the application is correct and that the applicant is in
compliance with the base jurisdiction’s laws, the base jurisdiction shall issue the fuel tax credentials
for the fleet.
R335 NON-ISSUANCE OF LICENSE
A license will not be issued if the applicant has been previously licensed under this Agreement and
that license is still under revocation by any member jurisdiction or the application contains any
misrepresentation, misstatement, or omission of information required in the application.
*R340 BOND REQUIREMENT
The base jurisdiction may require a licensee to post a bond if one of the following conditions exist:
.100 failure to file tax returns timely or to remit taxes timely;
.200 when an audit indicates problems severe enough that, in the commissioner's discretion, a
bond is required to protect the interests of the member jurisdictions; or
.300 the issuance of an IFTA license, when the applicant is seeking the license pursuant to
R325.
Requirements for posting of bonds are outlined in IFTA Procedures Manual Section P400.
*R345 LICENSE RENEWAL
.100 A renewal license and decals for the following calendar year will be issued upon
application if the license is not revoked or canceled, all tax returns have been filed, and all
motor fuels use taxes, penalties and interest due have been paid and the applicant is in
compliance with the base jurisdiction’s laws.
.200 In lieu of renewal application, jurisdictions may notify a licensee that meets the requirements
of R345.100 that their license will automatically be renewed for the following calendar year.
.300 Jurisdictions have the right to cancel or deny renewal of an IFTA license to a carrier that
does not leave the confines of the borders of the base jurisdiction and reports zero or
base jurisdiction distance only for three (3) or more consecutive quarters. The base
jurisdiction has the right to require proof of out of jurisdiction travel prior to allowing the
carrier to get licensed again under the IFTA agreement. Proof may be in the manner of
out of jurisdiction fuel permits purchased and/or amended IFTA returns showing actual
distance traveled during a quarter already filed or for those reasons the base jurisdiction
deems necessary to reissue the license including but not limited to the list included in
R345.100.
IFTA ARTICLES OF AGREEMENT 21 January 1996
Effective July 1, 1998
Last Revised January 2007
*R350 NOTIFICATION TO MEMBER JURISDICTIONS
The base jurisdiction shall send to each member jurisdiction a listing of new applicants,
identifying the license numbers assigned. New applicant information shall be forwarded to
each member jurisdiction quarterly.
R355 FEES
The base jurisdiction may collect its statutorily authorized fees for issuance of the license
and decals to licensees based in its jurisdiction.
R360 PROVIDING INFORMATION TO LICENSEES
Each jurisdiction shall provide licensees and prospective licensees with all information
required to enable them to comply with all the terms of this Agreement. When credentials
are issued to a new licensee, information shall be provided to the licensee which
completely describes the requirements of the Agreement. This should include, but not be
limited to:
.100 Instructions for display of license or cab card and decals;
.200 Licensing requirements and cancellation provisions;
.300 Tax reporting and recordkeeping requirements;
.400 Audit information;
.500 Explanation of base jurisdiction determination.
As the Articles of Agreement, Procedures Manual, and Audit Manual are revised, it is the
responsibility of each base jurisdiction to notify its licensees of the current requirements.
*R365 EFFECT OF AMENDMENTS TO AGREEMENT
.100 If a licensee does not accept a revision to the Agreement as set out in a notice
referred to in R360, the licensee must notify the base jurisdiction in writing that it is
canceling its IFTA license. The motor carrier shall destroy its IFTA license and
remove all decals and copies of the license from its qualified motor vehicles. A
statement that this has been done shall be included in the notification to the base
jurisdiction.
.200 Any licensee that notifies a base jurisdiction pursuant to R365.100, but does not
destroy its license and remove all decals, is subject to appropriate penalties as
imposed by a jurisdiction.
IFTA ARTICLES OF AGREEMENT 22 January 1996
Effective July 1, 1998
Last Revised January 2007
*R370 LICENSEE RIGHT OF APPEAL
An applicant who has been denied a license or whose license has been revoked may file
an appeal in accordance with IFTA Articles of Agreement Section R1400.
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IFTA ARTICLES OF AGREEMENT 23 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article III
R305 In July 1993, the membership voted to include the Consensus Board Interpretation, Issue 31, as narrative to IFTA Articles of
Agreement Section R305.
ISSUE: May a carrier with vehicles based in multiple jurisdictions (IFTA and non-IFTA) be allowed to license and report all its vehicles
through a non-IFTA jurisdiction?
BOARD INTERPRETATION:
The Consensus Board Interpretation is that Section R310 allows the option of a trip permit. Section R500 allows different
requirements for lessors, lessees, independent contractors, and household goods agents.
Assuming the carrier does not qualify for either of these exemptions, has qualified vehicles based in an IFTA jurisdiction and
operates in two or more IFTA jurisdictions, the carrier must be licensed for IFTA. Section R212 defines a base jurisdiction.
R305 IFTA Ballot 9-1995 amended IFTA Articles of Agreement R305 to expand the licensing requirement to include a person
operating a qualified motor vehicle in a member jurisdiction and a RFTA jurisdiction and was effective July 1, 1997. Also, see
Commentary to IFTA Articles of Agreement R1900 regarding and IFTA/RFTA cooperative agreement.
R305 IFTA Ballot 10-2001 amended IFTA Articles of Agreement R305 to remove the expanded language regarding operating in
a member jurisdiction and a RFTA jurisdiction which was added by Ballot 9-1995 and was effective January 1, 2002.
R320 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the
language more consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R325 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R325 IFTA Ballot 7-2004 amended IFTA Articles of Agreement Section R325 to clarify that an IFTA member jurisdiction may
license a motor carrier based in a non-member jurisdiction and that such motor carrier must either pay audit expenses or
make the records available in the base jurisdiction at the discretion of the base jurisdiction and was effective January 2006.
Also, see commentary to R960.
R330 IFTA Ballot 1-2006 amended IFTA Articles of Agreement Section R330 to allow jurisdictions more flexibility with the
application process and issuance of credentials and was effective December 5, 2006.
R340 IFTA Ballot 8-2004 and Ballot 15-2005 amended the IFTA Articles of Agreement Section R340 to allow a member
jurisdiction to require a bond when licensing a carrier under R325, and to make the language more consistent with all of
the IFTA Governing Documents and were effective January 1, 2006. Also, see commentary to R910.
R345.100 IFTA Ballot 2-2006 amended IFTA Articles of Agreement R345 to provide that a jurisdiction will renew an IFTA license if it
is not revoked or cancelled, if all returns have been filed, all taxes, penalties and interest have been paid, and
the applicant is in compliance with base jurisdiction laws and was effective December 5, 2006.
R345.200 Ballot 9-1996 added IFTA Articles of Agreement Section R345.200 to provide that IFTA licenses may be automatically
renewed by member jurisdictions under certain circumstances and was effective July 1, 1998.
IFTA ARTICLES OF AGREEMENT 24 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article III Continued
R345 [EDITOR’S NOTE: In light of the passage of Ballot 9-1996, effective July 1, 1998, Commentary resulting from the
ratification of Issue 9 is no longer valid as of that date because said Commentary is in direct conflict to the language
of Ballot 9-1996. The Commentary regarding Issue 9 is for historical reference only.}
In July 1992, the membership voted to include the commentary from Consensus Board Interpretation, Issue 9, as narrative to IFTA
Articles of Agreement Section R345.
ISSUE: Can the State of Utah automatically renew its IFTA licenses without requesting a renewal application to be completed?
BOARD INTERPRETATION:
Section R345 of the Agreement states:
A renewal license and decals for the following calendar year will be issued upon application if the license has not
been revoked or canceled, all returns have been filed, and all motor fuels use taxes, penalties, and interest due
have been paid.
Utah complies with all of these procedures except it does not have the carrier file an application. We believe this is clearly not
in compliance with the Articles of Agreement. "A renewal license . . . will be issued upon application . . .." The Board also
believes Utah should change its procedure to require the carrier to file an application. We hasten to add that this renewal
application could be as simple as the card Utah already sends to update decal needs and address changes. Many other
states do something similar and appropriately consider that a renewal application.
The Board believes the Articles of Agreement should not be rewritten at this time to allow automatic renewals of licenses
without application. While this may seem to be a small change, it would erode our foundation of uniformity. The more states
deviate with interpretations of the Agreement, the less viable our organization becomes.
R345 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R345.300 IFTA Ballot 6-2007 amended the IFTA Articles of Agreement to allow a base jurisdiction to deny renewal of a
carrier’s IFTA license for filing zero or base jurisdiction distance only for three (3) consecutive quarters or more
and was effective January 1, 2008.
R350 In July 2001, the membership voted to include Consensus Board Interpretation, Issue 58-01, as narrative to IFTA Articles of
Agreement Section R350 and referenced at Sections R410.300, R420.300 and 430.300.
ISSUE: Whether the commentary currently found to R350 and referenced at R410.300, R420.300 and R430.300 conflicts with the
provisions found in these sections.
BOARD INTERPRETATION:
Pursuant to R350 and R410.300, new account information, including the license number, and canceled account information
shall be forwarded by each jurisdiction to all other member jurisdictions quarterly. There is no requirement that this be a
cumulative report.
Pursuant to R420.300 and R430.300, license suspension, revocation and reinstatement information shall be forwarded by
each jurisdiction to all other member jurisdictions within ten (10) days of the suspension, revocation or reinstatement. There
is no requirement that this information become part of the quarterly report.
The previous commentary to R350 is hereby repealed.
[EDITOR’S NOTE:: The commentary to R350 resulting from issue 20-92, and repealed by issue 58-01 remains for historical
reference only.]
IFTA ARTICLES OF AGREEMENT 25 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article III Continued
R350 In July 1992, the membership voted to include Consensus Board Interpretation, issue 20-92, as narrative to IFTA Articles of
Agreement Section R350 and Section R410.300, R420.300 and 430.300.
ISSUE: What type of notification should be sent to each jurisdiction and in what manner?
EXAMPLE:
New licenses should be sent out in a quarterly report. Would this report then only be for that quarter and not be cumulative?
On revocations, cancellations, and suspensions, the report is sent within 10 days and is included in a quarterly cumulative
report. Is this quarterly necessary?
Cancellations are quarterly generated. Is this a cumulative quarterly report?
BOARD INTERPRETATION:
The Consensus Board Interpretation is that the report be sent on a quarterly basis and information is not cumulative. Based
upon the Articles of Agreement, jurisdictions are expected to comply.
Jurisdictions are expected to send within 10 days information on revocations, reinstatements, cancellations, or suspensions.
This information becomes part of the quarterly report.
R365 IFTA Ballot 1-2001 added IFTA Articles of Agreement Section R365 to embody the core principles identified in the Final
Report of the State Legislation and Constitutional Provisions Project conducted by NCSL and was effective July 1, 2003.
R370 IFTA Ballot 1-2001 added IFTA Articles of Agreement Section R365 to embody the core principles identified in the Final
Report of the State Legislation and Constitutional Provisions Project conducted by NCSL and was effective July 1, 2003. The
previous Section R365 was renumbered to R370.
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IFTA ARTICLES OF AGREEMENT 26 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE IV
R400 CANCELLATION, REVOCATION, AND SUSPENSION
*R410 LICENSE CANCELLATION
.100 A base jurisdiction may, at the request of a licensee or on its own initiative, cancel
a license if the licensee has complied with all applicable provisions of this
Agreement, including the satisfaction of all motor fuel use tax obligations for the
license period. The base jurisdiction shall instruct its licensees that, upon
cancellation, the original IFTA license, all license copies, and all decals shall be
destroyed.
.200 Licenses shall be canceled in accordance with the administrative procedure laws of
the base jurisdiction.
.300 The base jurisdiction shall notify all member jurisdictions quarterly of all canceled
accounts.
*R420 LICENSE SUSPENSION AND REVOCATION
.100 Failure to comply with all applicable provisions of this Agreement shall be grounds
for suspension or revocation of the license issued under this Agreement.
.200 Licenses shall be suspended or revoked in accordance with the administrative
procedure laws of the base jurisdiction.
.300 The base jurisdiction shall notify all member jurisdictions within 10 days of all
suspensions and revocations
*R430 LICENSE REINSTATEMENT
.100 A former licensee whose license has been revoked may have that license
reinstated. Before a license may be reinstated, the base jurisdiction may
require a reinstatement fee in accordance with the existing jurisdictional
laws.
.200 The base jurisdiction may also require the reinstated licensee to post a fuel
tax bond in an amount sufficient to satisfy any potential liability to all
member jurisdictions.
.300 The base jurisdiction shall notify all member jurisdictions within 10 days of
all reinstatements.
IFTA ARTICLES OF AGREEMENT 27 January 1996
Effective July 1, 1998
Last Revised January 2007
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IFTA ARTICLES OF AGREEMENT 28 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article IV
R410.100 IFTA Ballot 4-2004 amended the IFTA Articles of agreement, Section R410 to redefine license cancellation and was effective
July 1, 2006. Also, see commentary to R215.
R410.200 In July 1998, it was unanimously ratified by the membership to include Consensus Board Interpretation,
R420.200 Issue 54-98, as narrative to IFTA Articles of Agreement Sections R410.200 and R420.200.
ISSUE: When an IFTA licensee fails to file a quarterly fuel tax report and subsequently fails to respond to the Failure to File Notice
and Best Information Available Assessment or fails to respond to an assessment of additional tax, interest and/or penalty
within the prescribed 30-day period, does the base jurisdiction:
1) issue a revocation notice allowing a 30-day period to file an appeal (Articles of Agreement Section R1410);
2) follow its own administrative procedures laws (Articles of Agreement Sections R410.200 and R420.200); or
3) issue an immediate revocation (Articles of Agreement Section R1260)?
BOARD INTERPRETATION:
The base jurisdiction would follow its own administrative procedures laws regarding the revocation/suspension of an IFTA
license and the appeal of such action. The Articles of Agreement Sections R410.200 and R420.200 control with respect to
the revocation/suspension of an IFTA license because it addresses a specific occurrence and provides a specific course of
action. The 30-day period prescribed in the Articles of Agreement Section R1410 would be applicable if the base jurisdiction
did not have provisions in its administrative procedures laws for revocation/suspension of licenses and appeals of such
actions.
R410.300 See commentary at IFTA Articles of Agreement Section R350 regarding notification to members of changes
R420.300 in licensee status
R430.300
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IFTA ARTICLES OF AGREEMENT 29 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE V
R500 LESSORS/LESSEES AND HOUSEHOLD GOODS CARRIERS
*R510 RENTAL/LEASING
.100 Short-Term Leases. In the case of a short-term motor vehicle rental, by a lessor
regularly engaged in the business of leasing, or renting motor vehicles without
drivers, for compensation to licensees or other lessees of 29 days or less, the
lessor will report and pay the fuel use tax unless the following two conditions are
met:
.005 The lessor has a written rental contract which designates the lessee as the
party responsible for reporting and paying the fuel use tax; and
.010 The lessor has a copy of the lessee’s IFTA fuel tax license which is valid for
the term of the rental.
.200 Long-Term Leases. A lessor regularly engaged in the business of leasing or
renting motor vehicles without drivers for compensation to licensees or other
lessees may be deemed to be the licensee, and such lessor may be issued a
license if an application has been properly filed and approved by the base
jurisdiction
*R520 HOUSEHOLD GOODS CARRIERS
In the case of a household goods carrier using independent contractors, agents, or service
representatives, under intermittent leases, the party liable for motor fuel use tax shall be:
.100 The lessee (carrier) when the qualified motor vehicle is being operated under the
lessee's jurisdictional operating authority. The base jurisdiction for purposes of this
Agreement shall be the base jurisdiction of the lessee (carrier), regardless of the
jurisdiction in which the qualified motor vehicle is registered for vehicle registration
purposes by the lessor or lessee.
.200 The lessor (independent contractor, agent, or service representative) when the
qualified motor vehicle is being operated under the lessor's jurisdictional operating
authority. The base jurisdiction for purposes of this Agreement shall be the base
jurisdiction of the lessor, regardless of the jurisdiction in which the qualified motor
vehicle is registered for vehicle registration purposes.
IFTA ARTICLES OF AGREEMENT 30 January 1996
Effective July 1, 1998
Last Revised January 2007
*R530 INDEPENDENT CONTRACTORS
.100 Short-Term Leases. In the case of a carrier using independent contractors under
short-term/trip leases of 29 days or less, the trip lessor will report and pay all fuel
taxes.
.200 Long-Term Leases. In the case of a carrier using independent contractors under
long-term leases (30 days or more), the lessor and lessee will be given the option
of designating which party will report and pay fuel use tax. In the absence of a
written agreement or contract, or if the document is silent regarding responsibility
for reporting and paying fuel use tax, the lessee will be responsible for reporting
and paying fuel use tax. If the lessee (carrier) through a written agreement or
contract assumes responsibility for reporting and paying fuel use taxes, the base
jurisdiction for purposes of this Agreement shall be the base jurisdiction of the
lessee, regardless of the jurisdiction in which the qualified motor vehicle is
registered for vehicle registration purposes by the lessor.
R540 FILING OF LEASES
No member jurisdiction shall require the filing of such leases but such leases shall be
made available upon request of any member (see IFTA Procedures Manual, Section
P520).
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IFTA ARTICLES OF AGREEMENT 31 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article V
R510.100 Ballot 2-1993 was intended to better define the parties responsible for reporting and paying the fuel use
R510.200 taxes in short-term lease situations. The ballot identified the “lessor” as the responsible party, with one exception. The
exception is defined in IFTA Articles of Agreement R510.100 and requires two conditions to be met. The exception
only applies to lessors who are regularly engaged in the business of leasing, or renting vehicles without drivers and
only when BOTH conditions are met. Ballot 2-1993 amended IFTA Articles of Agreement Section R510.100. The
ballot was effective July 1, 1995.
R510.100 See commentary at IFTA Articles of Agreement Sections R230 and R233 regarding definitions of “Lessor” and “Lessee”.
R510.100 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R510.200 See commentary at IFTA Articles of Agreement Section R212 regarding licensing of lessors/lessees.
R520 In July 1990, a special committee was formed to review issues of household goods carriers unique to that group
such as intermittent leases. Ballot 90-225-4 amended IFTA Articles of Agreement Section R520, changing the
application of the Agreement for household goods carriers and independent contractors.
R530.200 IFTA Ballot 7-1994 amended IFTA Articles of Agreement Section R530.200 to identify the responsible tax reporting party in a
lease situation in the absence of a written agreement or if the written agreement is silent regarding such
responsibility and was effective July 1, 1996.
R530.200 IFTA Ballot 4-1996 amended IFTA Articles of Agreement Section R520.200 to include a lease of 30 days in the provision
regarding long-term leases and was effective on October 10, 1996
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.
IFTA ARTICLES OF AGREEMENT 32 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE VI
R600 VEHICLE IDENTIFICATION
*R605 IDENTIFICATION REQUIREMENT
The base jurisdiction shall issue a license and two decals per vehicle. The license and
decals shall qualify the licensee to operate in all member jurisdictions without further
licensing or identification requirements in regard to motor fuel use taxes.
R610 LICENSE PERIOD
The license is valid for the current calendar year ending December 31, and shall be
reproduced by the licensee and placed in the qualified motor vehicles of the licensee's
fleet. The licensee's identification code will remain unchanged from year to year until the
license is canceled or revoked. The decals shall be issued annually.
R615 FORM AND CONTENT
The form and content of the license and decal shall be specified in the IFTA Procedures
Manual. The decal shall not be so designed as to require vehicle specific data.
*R620 POSSESSION OF LICENSE
Each licensee shall be issued one IFTA license or cab card. The licensee is required to
make legible copies of the license so that one copy shall be carried in each vehicle. A
vehicle will not be considered to be operating under this Agreement unless there is a copy
of the license in the vehicle.
*R625 DISPLAY OF DECALS
Each licensee shall be issued a minimum of two vehicle identification decals for each
qualified vehicle in its fleet. The decals must be placed on the exterior portion of both
sides of the cab. In the case of transporters, manufacturers, dealers, or driveway
operations, the decals need not be permanently affixed, but may be temporarily displayed
in a visible manner on both sides of the cab.
IFTA ARTICLES OF AGREEMENT 33 January 1996
Effective July 1, 1998
Last Revised January 2007
R630 DISPLAY OF RENEWAL CREDENTIALS
Carriers renewing credentials may operate with the IFTA decals and license one month
prior to the effective date shown on the credentials. However, those carriers are
responsible for filing a fourth quarter report for the year preceding the effective date of the
new credentials, including the last month of that quarter.
*R635 DISPLAY OF MULTIPLE CREDENTIALS
Qualified motor vehicles to be operated by more than one IFTA licensee during the
calendar year may display IFTA decals for each active licensee concurrently.
R640 TRANSFER OF DECALS
Decals shall not be transferred between motor vehicles without authorization from the
base jurisdiction.
*R650 TEMPORARY DECAL PERMITS
The base jurisdiction may provide for the issuance of a 30-day IFTA temporary decal
permit valid for all member jurisdictions to a licensee in good standing to carry in lieu of
displaying the annual decals. The base jurisdiction may charge an administrative fee to the
licensee to cover the cost of issuance. Temporary decal permits must be vehicle specific
and show the expiration date. The temporary decal permit need not be displayed but shall
be carried in the vehicle.
*R655 GRACE PERIOD
.100 Carriers from new member jurisdictions shall be allowed a two-month grace period
from the date of the new member's IFTA program implementation to display the
IFTA license and decals. However, carriers must maintain the proper credentials
for traveling in member jurisdictions until they display the valid IFTA license and
decals.
.200 Carriers renewing their IFTA license and decals have a two-month grace period
(January and February) to display the renewal IFTA license and decals. To
operate in IFTA jurisdictions during this grace period, carriers must display either
valid current or prior year IFTA license and decals from the jurisdiction in which
they were operating or a valid single-trip permit from the IFTA jurisdiction in which
they are operating.
IFTA ARTICLES OF AGREEMENT 34 January 1996
Effective July 1, 1998
Last Revised January 2007
*R660 NON-COMPLIANCE
.100 Failure to possess a copy of the license in the vehicle may subject the vehicle
operator to the purchase of a trip permit, a citation, or both.
.200 Failure to display the identification decals in the required locations or to carry a
temporary permit may subject the vehicle operator to the purchase of a trip permit,
a citation, or both.
.300 Improper use of the license or the decals by the licensee may be cause for
revocation of the license.
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IFTA ARTICLES OF AGREEMENT 35 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article VI
R605 In October 1990, requiring two decals instead of one for vehicle identification was raised as an issue by some of the heavier
truck traffic jurisdictions. Some jurisdictions felt that two decals (one on each side) were more appropriate because of the
positioning of weigh station and port-of-entry personnel. It was hoped that better visibility of decals would improve the flow of
truck traffic. IFTA Ballot 16-91 amended IFTA Articles of Agreement Sections R605 and R625 to require issuance of two
decals instead of one, with an effective date of March 16, 1993.
R620 See commentary at IFTA Articles of Agreement Section R650 regarding issuance of temporary permits in lieu of decals only.
R625 See commentary at IFTA Articles of Agreement Section R605 regarding issuance of two decals.
R635 IFTA Ballot 90-255-4 amended IFTA Articles of Agreement R635 to cover vehicles operated by multiple licensees.
R650 In July 1991, the Temporary Credential Issuance Subcommittee proposed jurisdictions be permitted to issue 30-day
temporary permits, allowing fleet vehicles to be placed in service immediately. IFTA Ballot 1-92 amended IFTA Articles of
Agreement Section R650, allowing jurisdictions to issue 30-day temporary permits and was effective January 1, 1993.
R650 Ballot 2-92 amends IFTA Articles of Agreement, allowing jurisdictions to issue a 30-day temporary authorization to allow a
vehicle to be placed in service immediately. Ballot 2-92 was effective January 1, 1993.
R650 In July 1998, it was unanimously ratified by the membership to include Consensus Board Interpretation, Issue 55-98, as
narrative to IFTA Articles of Agreement Section R650.
ISSUE: Whether a temporary permit, as defined in IFTA Articles of Agreement Section R263, can be issued in lieu of IFTA decals
and licenses.
BOARD INTERPRETATION:
Section R650 of the IFTA Articles of Agreement does not authorize the issuance of a temporary IFTA license. The temporary
permit must be issued in place of decals only. Because the IFTA does not allow the issuance of a temporary permit in lieu of
an IFTA license, such a practice by a member jurisdiction subjects its licensees to citations or the purchase of trip permits in
other member jurisdictions.
R650 IFTA Ballot 14-2004 amended the IFTA Articles of Agreement Section R650 to clarify the language to state the temporary
permit is a temporary decal permit and was effective January 1, 2006. Also, see commentary to R263.
R655 In July 1991, it was unanimously ratified by the membership to include Consensus Board Interpretation, Issue 3, as narrative
to IFTA Articles of Agreement Section R655.
ISSUE: What is IFTA's policy concerning the grace period for displaying license and decals for new IFTA member carriers and for
current IFTA member carriers?
BOARD INTERPRETATION:
The Board consensus on this issue was that the grace period applies to both the license and the display of credentials. It
was agreed that the way in which the Agreement language is currently written is potentially confusing. However, based on
the discussions in Indianapolis, it was felt that the grace period for the license and display of decals would be honored for this
year with the understanding that the Agreement should probably be modified prior to the beginning of 1992.
R655 Ballot 4-92 amends the IFTA Articles of Agreement Section R655 to appropriately clarify the grace period and was effective
January 1, 1993.
R655 Ballot 5-92 amends IFTA Articles of Agreement Section R655, clarifying the grace period. Ballot 5-92 was effective
December 1, 1992.
IFTA ARTICLES OF AGREEMENT 36 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article VI Continued
R655 In July 1992, the membership voted to include Consensus Board Interpretation, Issue 11, as narrative to IFTA Articles of
Agreement Section R655.
ISSUE: Under the Agreement, decals may be displayed one month prior to their effective date, and carriers from new member
jurisdictions shall be allowed a 60-day grace period from the new member's program implementation date. Realizing this
issue has been brought up before, North Carolina would like clarification that if the carrier travels into an IFTA jurisdiction on
December 1, 1991, with a North Carolina IFTA decal, will it be honored?
More importantly, the jurisdiction wants clarification that if a North Carolina carrier does not have a 1992 IFTA decal, will the
state honor its 1991 decal or the 1991 North Carolina decal or the North Carolina license plate? If the carrier will become a
1992 North Carolina IFTA carrier but has some if its vehicles plated in another jurisdiction, would its 1991 North Carolina
decal be honored?
BOARD INTERPRETATION:
Jurisdictions will not honor a North Carolina, Arkansas, or Kansas IFTA credential in December 1991, since jurisdiction
implementation will not occur until January 1992.
North Carolina, Arkansas, and Kansas IFTA motor carriers must display one of the following when operating in another IFTA
state during December 1991:
1. A valid 1991 decal and fuel license (when applicable) issued by the IFTA state(s) in which they are operating;
2. A 1991 IFTA decal and fuel license from a state that was a member during 1991; or
3. A temporary or trip permit for the IFTA state in which they are operating.
During January and February of 1992, when operating in another IFTA state, one of the preceding must be displayed or a
1992 North Carolina, Arkansas, or Kansas IFTA decal and fuel license.
R655 Ballot 11-2001 amended IFTA Articles of Agreement Section R655 to add the subsection number .100 and to add .200 to
more specifically describe the allowed grace period and the credential display requirements during the grace period and was
effective January 1, 2003.
R660 Ballot 17-91 amends IFTA Articles of Agreement Section R660, clarifying the interpretation of decal identification. The
effective date of IFTA Ballot 17-91 was March 16, 1993. The enforcement provision contained in this section gives the
enforcement officers of the member jurisdictions discretion regarding the issuance of a citation and the requirement of a trip
permit in the event two decals are not displayed on a qualified vehicle.
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IFTA ARTICLES OF AGREEMENT 37 January 1996
Effective July 1, 1998
Last Revised January 2007
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IFTA ARTICLES OF AGREEMENT 38 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE VII
*R700 RECORDS REQUIREMENTS
Every licensee shall maintain records to substantiate information reported on the tax returns.
Operational records shall be maintained or be made available for audit in the base jurisdiction.
Recordkeeping requirements shall be specified in the IFTA Procedures Manual.
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IFTA ARTICLES OF AGREEMENT 39 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article VII
R700 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
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IFTA ARTICLES OF AGREEMENT 40 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE VIII
*R800 TAXATION OF MOTOR FUELS
The procedures contained in this Agreement apply to motor fuel use taxes that are imposed by
each jurisdiction on the consumption of motor fuel in qualified motor vehicles.
*R810 QUALIFIED MOTOR VEHICLES
.100 Tax reporting under this Agreement shall be for qualified motor vehicles as
defined in this Agreement.
.200 No member jurisdiction may require tax reporting or trip permitting for any
vehicles based in any other member jurisdiction, other than qualified motor
vehicles as defined in IFTA Articles of Agreement R245.
*R820 TAXABLE FUEL USE
All motor fuel acquired that is normally subject to consumption tax is taxable unless proof
to the contrary is provided by the licensee. The licensee must report all fuel placed in the
supply tank of a qualified motor vehicle as taxable on the tax return.
*R830 EXEMPT FUEL USE
.100 A member jurisdiction may exempt from taxation any use of motor fuel within its
jurisdiction.
.200 Fuel use defined as exempt by a particular jurisdiction must be reported under this
Agreement. For reporting tax-exempt miles or kilometers, the licensee is required
to obtain the definition of operations that qualify for tax-exempt status from the
jurisdictions of the Agreement.
.300 Licensees must submit claims for refund for tax paid on tax-exempt fuel directly to
the respective jurisdiction. (See IFTA Articles of Agreement Sections R1000 and
R1100.)
IFTA ARTICLES OF AGREEMENT 41 January 1996
Effective July 1, 1998
Last Revised January 2007
*R840 REPORTING INTRAJURISDICTIONAL TRAVEL
The licensee may include fuel purchases and travel by qualified motor vehicles operated
exclusively within a jurisdiction by obtaining IFTA decals for the intrajurisdictional
vehicle(s). Once decaled, the intrajurisdictional vehicle(s) must continue to be reported
until such time as the decal becomes expired or the vehicle(s) are no longer under the
licensee’s authority.
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IFTA ARTICLES OF AGREEMENT 42 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article VIII
R800 See commentary at IFTA Articles of Agreement Section R212 regarding fuel purchases for use in tax-exempt
R820 vehicles.
R800 IFTA Ballot 1-2001 amended IFTA Articles of Agreement Section R800 to embody the core principles identified in the Final
Report of the State Legislation and Constitutional Provisions Project conducted by NCSL and was effective July 1, 2003.
R810 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
R820 consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R830 See Commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R830.100 See commentary at IFTA Articles of Agreement R224 regarding reporting of exempt/nontaxable miles or kilometers on an
IFTA tax return.
R830.100 IFTA Ballot 1-2001 added IFTA Articles of Agreement Section R830.100 to embody the core principles identified in the Final
Report of the State Legislation and Constitutional Provisions Project conducted by NCSL and was effective July 1,
2003. In addition, the previous Subsections R830.100 and R830.200 were renumbered to R800.200 and
R830.300 respectively.
R830.200 Ballot 7-92 added IFTA Agreement Section R830.200 effective January 1, 1994.
R840 In July 1992, the membership unanimously ratified inclusion of Consensus Board Interpretation, Issue 13, as narrative to
IFTA Articles of Agreement Section R840.
ISSUE: Which is to be used on a tax return to determine the average miles per gallon, the all operations figures? North Carolina
believes units which operated intrastate only (not interstate) in any state during a reporting period may be excluded in the
"everywhere/all operations" figures. What is correct?
BOARD INTERPRETATION:
Under the Agreement it is permissible for the carrier to be allowed to include intrastate qualified vehicle miles and reporting of
intrastate operations through the IFTA return or through their own state return. If they are through IFTA, then the IFTA
jurisdiction will need to make sure that in the audit the proper amount of taxation is collected and distributed.
If the carrier or registrant is reporting intrastate miles traveled by qualified vehicles on the IFTA tax return, the intrastate miles
and fuel must be included in the IFTA calculation for miles per gallon. If the carrier or registrant is not reporting intrastate
miles or fuel, they cannot include miles and fuel in the calculation for miles per gallon
R840 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R840 IFTA Ballot 5-2000 amended IFTA Articles of Agreement Section R840 to add language concerning obtaining decals for
intrajurisdictional vehicles and was effective July 1, 2002
R840 Correction – IFTA Ballot 5-2000 changed the title of this section from Reporting Interstate Travel to Reporting
Intrajurisdictional Travel.
IFTA ARTICLES OF AGREEMENT 43 January 1996
Effective July 1, 1998
Last Revised January 2007
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IFTA ARTICLES OF AGREEMENT 44 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE IX
R900 REPORTING
*R910 REPORTING REQUIREMENT
The licensee shall file a tax return for the tax reporting period with the base jurisdiction
and shall pay all taxes due to all member jurisdictions with the remittance payable to the
base jurisdiction by the due date. Jurisdictions may only require payment by guaranteed
funds for the same reasons a bond may be required under R340.
*R920 FILING WITH BASE JURISDICTION
The timely filing of the tax return and the payment of taxes due to the base jurisdiction
for all member jurisdictions discharges the responsibility of the licensee for filing of tax
returns and payment of individual taxes to all member jurisdictions.
*R930 TAX REPORTING PERIOD
.100 Quarterly Tax Reporting
The tax return shall be for the previous calendar quarter. Tax returns are
required even if no operations were conducted or no taxable fuel was used
during the tax reporting period.
.200 Annual Tax Reporting
Notwithstanding the quarterly tax reporting requirement, a licensee whose
operations total less than 5,000 miles or 8,000 kilometers (based on previous
filing history) in all member jurisdictions other than the base jurisdiction during 12
consecutive months may request to report on an annual basis. Should a licensee
wish to report annually, the licensee must obtain approval from the base
jurisdiction.
IFTA ARTICLES OF AGREEMENT 45 January 1996
Effective July 1, 1998
Last Revised January 2007
*R940 TAX RETURN FORMAT
.100 Forms
Tax return forms shall be furnished at no charge to each licensee at least 30
days prior to the due date of the tax return. All tax rates shown on the tax return
will be the current jurisdiction tax rate provided notification of a change in tax
rates is disseminated by a jurisdiction within the time limits prescribed by P1120.
Failure to receive the authorized form does not relieve the licensee from the
obligation to submit a tax return.
.200 Non Standard Returns
A base jurisdiction may authorize a licensee to submit a written or computergenerated
tax return in lieu of the standard tax return if the return includes all the
information required by this Agreement and is in a form acceptable to the base
jurisdiction.
.300 Electronic Return
A base jurisdiction may authorize a licensee to submit a tax return electronically,
in lieu of the standard tax return, if the return includes all the information required
by this Agreement and is in a form acceptable to the base jurisdiction.
R950 REQUIRED INFORMATION
Each jurisdiction shall utilize a standard tax return form that contains, but is not limited to,
all elements specified in the IFTA Procedures Manual P720.
*R960 DUE DATE
.100 The 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 tax return is due.
If a licensee has been granted permission to file tax returns annually, the annual
tax return shall be due January 31 following the close of the annual tax reporting
period. If the last day of the month falls on a Saturday, Sunday, or legal holiday,
the next business day shall be considered the due date.
IFTA ARTICLES OF AGREEMENT 46 January 1996
Effective July 1, 1998
Last Revised January 2007
.200 Delivery by National Postal Service or National Delivery Service
.005 Tax returns shall be considered received and filed on the date shown on
the cancellation mark stamped by the national postal service of the
Dominion of Canada, the United Mexican States, or the United States of
America, or a national delivery service equivalent, on the envelope that
contains the tax return; or the date the envelope was mailed, if proof
satisfactory to the base jurisdiction is available to establish the date of
mailing. To qualify under this provision, the envelope must be properly
addressed to the department designated by the base jurisdiction to
receive fuel tax returns and have adequate postage affixed.
.010 Tax payments shall be considered received on the date shown on the
cancellation mark stamped by the national postal service of the Dominion
of Canada, the United Mexican States, or the United States of America,
or a national delivery service equivalent, on the envelope that contains
the payment; or the date the envelope was mailed, if proof satisfactory to
the base jurisdiction is available to establish the date of mailing. To
qualify under this provision, the envelope must be addressed to the
department designated by the base jurisdiction to receive fuel tax
payments and have adequate postage affixed.
.015 When a tax return is hand delivered, the tax return shall be considered
received and filed on the date that the tax return is delivered and
receipted for by an employee of the department designated by the base
jurisdiction to receive tax returns.
.020 When a tax payment is hand delivered, the payment shall be considered
received on the date that the payment is delivered and receipted for by
an employee of the department designated by the base jurisdiction to
receive fuel tax payments.
.300 Delivery by Electronic Means
.005 Tax returns delivered electronically shall be considered to have been
received and filed on the date determined in accordance with the laws of
the base jurisdiction.
.010 Tax payments may be made by any method of electronic transfer
approved by the base jurisdiction.
.015 Electronic tax payments shall be considered to have been received on
the date determined in accordance with the laws of the base jurisdiction.
IFTA ARTICLES OF AGREEMENT 47 January 1996
Effective July 1, 1998
Last Revised January 2007
*R970 LATE FILING
Tax returns not filed or full payment of taxes not made by the due date shall be considered
late and any taxes due considered delinquent.
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IFTA ARTICLES OF AGREEMENT 48 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article IX
R910 IFTA Ballot 17-2002 amended IFTA Articles of Agreement Section R910 to remove the requirement of payment by check and
was effective January 1, 2004.
R910 IFTA Ballot 4-2003 amended IFTA Articles of Agreement Section R910 to remove the requirement to file a calendar quarterly
return, to add a requirement to file a return for the reporting period and to add a requirement that the remittance be made
payable to the base jurisdiction by the due date and was effective January 1, 2005.
R910 IFTA Ballot 8-2004 and Ballot 15-2005 amended the IFTA Articles of Agreement Section R910 to allow a member
jurisdiction to require a bond when licensing a carrier under R325, and to make the language more consistent with all of
the IFTA Governing Documents and were effective January 1, 2006. Also, see commentary to R340.
R910 IFTA Ballot 4-2006 amended IFTA Articles of Agreement Section R910 to separate the requirement for payment by
guaranteed funds from the requirement to post a bond and was effective November 21, 2006.
R920 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R930 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R930.200 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R930.200 See commentary at IFTA Articles of Agreement Section R203 regarding amendments to annual reporting provisions.
R930.200 IFTA Ballot 5-2006 amended the IFTA Articles of Agreement to eliminate the requirement for the base jurisdiction to
request permission of other jurisdictions to allow a licensee to report on an annual basis. This does not change
the criteria for a licensee to qualify for annual filing status and was effective November 21, 2006.
R940.100 IFTA Ballot 7-2003 amended IFTA Articles of Agreement Section 940.100 to provide that a jurisdiction may reference the
IFTA, Inc. or its own web site for purposes of providing the tax rates, so long as they are the correct rates and was
effective October 10, 2003.
R940 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R940 IFTA Ballot 6-2006 amended the IFTA Articles of Agreement to allow jurisdictions discretion to accept tax return
information on a non-prescribed form and was effective November 21, 2006.
R940.300 IFTA Ballot 10-2005 amended the IFTA Articles of Agreement, Section R940 to add subsection .400 and was effective
December 31, 2005.
{Editor’s Note: IFTA Ballot 6-2006 deleted what was previously numbered R940.200. As a result, the
commentary above is to the current R940.300.}
R960 IFTA Ballot 1-1994 amended IFTA Articles of Agreement Sections R960, R970 and R1220 to provide that full payment of
taxes due is a requirement for timely filing and to provide a due date for annual tax returns and was effective July 1, 1996.
R960 IFTA Ballot 7-2004 amended IFTA Articles of Agreement Section R960 to clarify that the use of a national postmark can
determine the timely filing of a tax return and was effective January 1, 2006.
IFTA ARTICLES OF AGREEMENT 49 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article IX Continued
R960.100 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R960.100 IFTA Ballot 4-2003 amended IFTA Articles of Agreement Subsections R960.100 and R960.200 to
R960.200 indicate when a remittance, in addition to the return, will be considered filed and received and was effective January 1, 2005.
R960.300 IFTA Ballot 10-2005 amended the IFTA Articles of Agreement, Section R960 to add subsection .300 and was effective
December 31, 2005.
R970 See commentary at IFTA Articles of Agreement Section R960 regarding amendments to clarify timely filing and
annual tax return provisions.
R970 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
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IFTA ARTICLES OF AGREEMENT 50 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE X
*R1000 TAX PAID PURCHASES
.100 To obtain credit for tax paid purchases, the licensee must retain a receipt, invoice,
credit card receipt, or automated vendor generated invoice or transaction listing,
showing evidence of such purchases and taxes paid. These records may be kept
on microfilm, microfiche or other computerized or condensed record storage
system which meets the legal requirement of the base jurisdiction. Licensees are
not required to submit proof of tax paid purchases with their tax returns.
.200 Receipts that have been altered or indicate erasures are not accepted for tax-paid
credits unless the licensee can demonstrate the receipt is valid.
*R1010 RETAIL FUEL PURCHASES
.100 A licensee may claim a tax-paid credit on the IFTA tax return for fuel purchased
at retail only when the fuel is placed into the fuel tank of a qualified motor vehicle
and the purchase price includes fuel tax paid to a member jurisdiction.
.200 The receipt must show evidence of tax paid directly to the applicable jurisdiction or
at the pump. Specific requirements for these receipts are outlined in the IFTA
Procedures Manual Section P560. No member jurisdiction shall require evidence
of such purchases beyond what is specified in the Procedures Manual.
.300 In the case of a lessee/lessor agreement, receipts for tax-paid purchases may be
in the name of either the lessee or the lessor provided a legal connection can be
made to the tax reporting party.
*R1020 BULK FUEL PURCHASES
.100 Storage fuel is normally delivered into fuel storage facilities by the licensee, and
fuel tax may or may not be paid at the time of delivery.
.200 A licensee may claim a tax-paid credit on the IFTA tax return for fuel withdrawn
from bulk storage only when the fuel is placed into the fuel tank of a qualified
motor vehicle; the bulk storage tank is owned, leased, or controlled by the
licensee; and either the purchase price of the fuel includes fuel tax paid to the
member jurisdiction where the bulk fuel storage tank is located or the licensee
has paid fuel tax to the member jurisdiction where the bulk fuel storage tank is
located.
IFTA ARTICLES OF AGREEMENT 51 January 1996
Effective July 1, 1998
Last Revised January 2007
.300 The licensee's records must identify the quantity of fuel taken from the licensee's
own bulk storage and placed in its qualified motor vehicles. Recordkeeping
requirements for tax paid bulk fuel purchases are provided in IFTA Procedures
Manual Section P570.
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IFTA ARTICLES OF AGREEMENT 52 January 1996
Effective July 1, 1998
Revised January 2006
Commentary to Article X
R1000 See commentary at IFTA Articles of Agreement Section R212 regarding fuel purchases for use in tax-exempt vehicles.
R1000 In July 1992, the IFTA Audit Committee was assigned to study the IFTA requirements for an invoice for credit for tax-paid
fuel. In August, 1992, the Tax Paid Fuel and Computerized Billing Services Subcommittee was formed to study the issue,
and its findings were presented at the 1993 IFTA Audit Workshop. As a result of these efforts, Ballot 3-1993 amended IFTA
Articles of Agreement Section R1000, effective January 1, 1994, to allow that automated vendor generated invoices and
transaction listings be retained by the licensees as evidence of tax paid purchases.
R1000 IFTA Ballot 11-95 amended IFTA Articles of Agreement Section R1000 to provide that altered receipts are not accepted for
tax-paid credits unless a licensee can demonstrate that the receipt is valid and was effective January 1, 1996. Ballot 11-95
reinserted language that was inadvertently deleted by Ballot 3-1993.
R1010 IFTA Ballot 9-2004 and Ballot 15-2005 amended the IFTA Articles of Agreement Section R1010 to provide clarity that tax
paid credit may only betaken only for tax paid fuel purchased in member jurisdictions and to make the language more
consistent with all of the IFTA Governing Documents and were effective January 1, 2006.
R1020.200 IFTA Ballot 9-2004 amended the IFTA Articles of Agreement Section R1020.200 to provide clarity that tax paid
credit may only be taken only for tax paid fuel purchased in member jurisdictions and was effective January
1,2006.
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IFTA ARTICLES OF AGREEMENT 53 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE XI
R1100 CREDITS AND REFUNDS
A licensee shall receive full credit or refund for tax-paid fuel used outside the jurisdiction where the
fuel was purchased. The base jurisdiction shall allow credits and issue refunds for all of its
licensees on behalf of all member jurisdictions. Refunds to licensees will be made only when all
tax liability, including audit assessments, have been satisfied to all member jurisdictions.
*R1110 CASH REFUNDS
The licensee shall receive, on request, a refund of any accumulated credits. The manner
in which the refund is issued shall be in accordance with the laws of the base jurisdiction.
All requests for refunds of credit balances must be filed in writing unless the base
jurisdiction has an automatic refund policy.
*R1120 APPLICATION OF CREDITS
.100 Such credits, when not refunded, shall be carried over to offset liabilities of the
licensee in future tax reporting periods until:
.005 The credit is fully offset; or
.010 Eight calendar quarters shall have passed from the end of the calendar
quarter in which the credit accrued,
whichever occurs sooner.
.200 When filing a tax return, a licensee may apply the overpayment generated in one
jurisdiction to the taxes owed to another jurisdiction and remit the net tax owed to
the base jurisdiction.
R1130 AUTHORIZATION TO WITHHOLD REFUNDS
As a condition to issuance of a motor fuel tax license under this Agreement, an applicant
will authorize on the application that refunds may be withheld if the licensee is delinquent
on fuel use taxes due to any member jurisdiction.
IFTA ARTICLES OF AGREEMENT 54 January 1996
Effective July 1, 1998
Last Revised January 2007
*R1140 CONDITIONS FOR ISSUANCE OF REFUNDS
.100 Refunds need not be made for an overpayment for which records are no longer
required under this Agreement. A request for refund shall extend the records
requirement date until the refund is made or denied.
.200 Credited amounts may be refunded to the licensee only if all motor fuels taxes,
penalty, and interest governed by this Agreement due every other member
jurisdiction have been paid, unless the unpaid amount is under appeal in
accordance with IFTA Articles of Agreement Section R1400.
*R1150 INTEREST ON REFUNDS
Refunds determined to be properly due shall be paid within 90 days after receipt of a
request for payment from a licensee. If not so paid, interest shall accrue at the rate
specified in IFTA Articles of Agreement Section R1230. Interest shall be calculated from
the date the refund was due for each month or fraction thereof until paid.
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IFTA ARTICLES OF AGREEMENT 55 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XI
R1110 IFTA Ballot 8-2006 amended the IFTA Articles of Agreement to eliminate the requirement that licensees make requests
for refunds in writing if the base jurisdiction has an automatic refund policy and eliminates the requirement that refunds be
issued in cash and was effective November 21, 2006.
R1120 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R1140.200 In July 1992, the membership voted to include the commentary from Consensus Board Interpretation, Issue 18-92,
as narrative to IFTA Articles of Agreement Section R1140.200.
ISSUE: If a taxpayer has a prior period credit and files a delinquent return for the current period, how is the credit applied? Is interest
calculated before or after the application of the credit?
BOARD INTERPRETATION:
When the taxpayer has a prior period credit and files a delinquent return for the current period, we believe interest must be
calculated before the application of the credit. This is necessary because the base jurisdiction is actually holding the money,
while the tax is due other jurisdictions. It would not be fair to apply the base state's credit against another state's liability. The
other state must receive interest. While this may seem unfair to the carrier, the carrier is not required to carry a credit on the
account and may request a refund, and the problem is avoided if the carrier files on time.
R1150 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
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IFTA ARTICLES OF AGREEMENT 56 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE XII
R1200 ASSESSMENT AND COLLECTION
*R1210 ASSESSMENT
.100 In the event that any licensee
.005 fails, neglects, or refuses to file a tax return when due;
.010 fails to make records available upon written request by the base
jurisdiction; or
.015 fails to maintain records from which the licensee’s true liability may be
determined,
the base jurisdiction shall proceed in accordance with .200 and .300.
.200 On the basis of the best information available to it, the base jurisdiction shall:
.005 determine the tax liability of the licensee for each jurisdiction and/or
.010 revoke or suspend the license of any licensee who fails, neglects or refuses
to file a tax report with full payment of tax when due, in accordance with the
base jurisdiction’s laws.
Both .200.005 and .200.010 may be utilized by the base jurisdiction. For purposes
of assessment pursuant to .100.010 or .100.015, the base jurisdiction must issue
a written request for records giving the licensee thirty (30) days to provide the
records or to issue a notice of insufficient records.
.300 The base jurisdiction shall, after adding the appropriate penalties and interest,
serve an assessment issued pursuant to .200.005 upon the licensee in the same
manner as an audit assessment or in accordance with the laws of the base
jurisdiction. The assessment made by a base jurisdiction pursuant to this
procedure shall be presumed to be correct and, in any case where the validity of
the assessment is questioned, the burden shall be on the licensee to establish by a
fair preponderance of evidence that the assessment is erroneous or excessive
IFTA ARTICLES OF AGREEMENT 57 January 1996
Effective July 1, 1998
Last Revised January 2007
*R1220 PENALTIES
.100 The base jurisdiction may assess the licensee a penalty of $50.00 or 10 percent of
delinquent taxes, whichever is greater, for failing to file a tax return, filing a late tax
return, underpaying taxes due.
.200 Penalties paid by the licensee shall be retained by the base jurisdiction.
.300 Nothing in the Agreement limits the authority of a base jurisdiction to impose any
other penalties provided by the laws of the base jurisdiction.
*R1230 INTEREST
The base jurisdiction, for itself and on behalf of the other jurisdictions, shall assess interest
on all delinquent taxes due each jurisdiction except taxes collected directly by other
jurisdictions in accordance with IFTA Procedures Manual Sections P1000 and P1120.300.
.100 U.S. Jurisdiction Interest Rate
For a fleet based in a U.S. jurisdiction, interest shall accrue at a rate of one percent
per month.
.200 Canadian Jurisdiction Interest Rate
For a fleet based in a Canadian jurisdiction, interest shall accrue at a rate equal to
the Canadian Federal Treasury Bill rate plus two percent and adjusted every
calendar quarter.
.300 Computation of Interest
.005 Tax Returns
Interest due from a tax return shall be calculated separately for each
jurisdiction from the date tax was due for each month or fraction thereof
until paid. A full month’s interest shall accrue for any portion of a month on
which tax owed remains unpaid.
IFTA ARTICLES OF AGREEMENT 58 January 1996
Effective July 1, 1998
Last Revised January 2007
.010 Audits
Audit interest shall be calculated separately for each jurisdiction. Audit
interest shall accrue monthly on the cumulative net tax balance owed to a
jurisdiction until paid. A cumulative net tax balance is the amount of
additional tax owed or tax overpayment made to a jurisdiction
immediately following the due date of any tax reporting period taking into
account all prior additional tax owed or overpayments made to a
jurisdiction during the audit period. The cumulative net tax balance shall
be adjusted immediately following the due date of any subsequent tax
reporting period to reflect tax owed or overpayment made for that tax
reporting period. A full month’s interest shall accrue for any portion of a
month on which tax owed remains unpaid. An overpayment for one
jurisdiction shall have no effect on the interest calculation for any other
jurisdiction.
.400 Remittance
All interest collected shall be remitted to the appropriate jurisdictions in accordance
with IFTA Procedures Manual Section P1000.
*R1240 COLLECTION PROCEDURES
.100 The collection of tax, penalty and interest owed to all member jurisdictions is the
responsibility of the base jurisdiction, except as noted in IFTA Procedures Manual
Sections P1000 and P1120.300.
.200 Methods of collection will be governed by the laws of the base jurisdiction and by
this Agreement.
.300 In accordance with the jurisdiction's law, a base jurisdiction may use lien provisions
to collect on taxes delinquent for a period of over 30 days. Such provisions shall
include appropriate notice and due process requirements.
IFTA ARTICLES OF AGREEMENT 59 January 1996
Effective July 1, 1998
Last Revised January 2007

[Sapphire Capital]

*R1250 RESPONSIBILITIES IN BANKRUPTCY PROCEEDINGS
.100 If the base jurisdiction receives official notice or otherwise obtains knowledge of
the filing of a bankruptcy case or similar insolvency, liquidation, or reorganization
proceeding by or against a licensee, the base jurisdiction shall be responsible for
determining and taking such action as it deems reasonable and proper with
respect to the need to:
.005 Prepare and file a proof of claim;
.010 Prepare and file requests for payment of post-petition liabilities; and
.015 Prosecuting and defending proofs and requests.
.200 If the base jurisdiction is named respondent or defendant in a contested matter
or adversary proceeding in which a member jurisdiction has an interest, and the
base jurisdiction determines that it will not pursue the IFTA claim, then the base
jurisdiction shall promptly notify such jurisdiction so it may seek to intervene.
.300 Upon request from a member jurisdiction, the base jurisdiction must promptly
provide such information and documentation in its possession as is necessary
for the member jurisdiction to defend any contested matters or adversary
proceedings involving fuel use taxes administered under IFTA.
*R1260 WAIVER OF PENALTIES AND INTEREST
.100 The base jurisdiction commissioner may waive penalties authorized by this Article
for reasonable cause. If a licensee can demonstrate a tax return was filed late
because of misinformation given to the carrier by the base jurisdiction, the interest
may be waived for the base jurisdiction if the jurisdiction's statutes allow such a
waiver. To waive interest for another jurisdiction, the base jurisdiction must receive
written approval from the other jurisdiction.
.200 Licensees against whom a penalty has been levied may file an appeal pursuant to
Article R1400.
*R1270 REVOCATION OF LICENSE
If a tax delinquency has not been satisfied, or the licensee has not filed a written appeal
within a 30-day period from the notification of delinquency, a notice of revocation will be
sent in accordance with the base jurisdiction’s statutes for such notices advising the
licensee of the immediate revocation of the fuel tax license.
IFTA ARTICLES OF AGREEMENT 60 January 1996
Effective July 1, 1998
Last Revised January 2007
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IFTA ARTICLES OF AGREEMENT 61 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XII
R1210 Ballot 9-1998 amended IFTA Articles of Agreement Section R1210 to allow jurisdictions to either issue an estimated
assessment or revoke or suspend a license and was effective July 1, 2000.
R1220 Ballot 20-91 amended IFTA Articles of Agreement Sections R1220 and R1230 to allow Canadian provinces to set interest
and penalty rates at levels satisfactory for Canadian-based carriers effective December 15, 1992.
R1220 See commentary at IFTA Articles of Agreement Section R960 regarding amendments to clarify timely filing and annual tax
return provisions.
R1220 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language more
consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R1230 IFTA ballot 11-1996 amended IFTA Articles of Agreement Section R1230 to specifically state that interest is collected by the
base jurisdiction for itself and on behalf of all member jurisdictions and was effective July 1, 1998.
R1230 See commentary at IFTA Articles of Agreement Section R130 regarding amendments to accommodate jurisdictions outside
of the United States.
R1230 See commentary at IFTA Articles of Agreement Section R1220 regarding setting of penalties and interest rates for the
Canadian carriers.
R1230 In July 1991, the membership unanimously ratified inclusion of Consensus Board Interpretation, Issue 2, as narrative to IFTA
Articles of Agreement Section R1230.
ISSUE: What is IFTA's policy concerning the way in which jurisdictions should be charging interest after January 1, 1991? Is interest
charged by date received or is it based upon the time period for which the carrier is filing?
BOARD INTERPRETATION:
The Board consensus on this topic was that fourth quarter returns should be charged at the new interest rate of one percent.
The interest rate should apply to the return due date. This means that multiple interest rates must be applied if tax is unpaid
during periods when the tax rate changes. Multiple interest rates will apply for both returns and audit assessments.
R1230 In July 1992, the membership unanimously ratified inclusion of Consensus Board Interpretation, Issue 16-92, as narrative to
IFTA Articles of Agreement Section R1230.
ISSUE: The IFTA Articles of Agreement Section R1230 state, "The base jurisdiction shall assess interest on all delinquent taxes due
each jurisdiction..." Is interest assessed for "each jurisdiction" at the jurisdiction level or is it assessed at the fuel type level?
BOARD INTERPRETATION:
A survey was done which indicated nearly all the jurisdictions assess interest for each fuel type. Because some jurisdictions
provide a separate return for each fuel type, netting the tax due before assessing interest would be difficult. (Contact
repository for survey.)
R1230 [EDITOR’S NOTE: In light of the passage of Ballot 11-1996, effective July 1, 1998, Commentary resulting from the
ratification of Issue 44-95 is no longer valid as of that date because said Commentary is in direct conflict to the
language of Ballot 11-1996. Provisions regarding calculation of audit interest can now be found at IFTA Articles of
Agreement Section R1230.300.010. The Commentary regarding Issue 44-95 is for historical reference only.}
IFTA ARTICLES OF AGREEMENT 62 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XII Continued
R1230 In July 1995, the membership unanimously ratified inclusion of Consensus Board Interpretation 44-95, as narrative to IFTA
Articles of Agreement Section R1230.
ISSUE: What is the appropriate method of interest calculation for an audit? At the 1994 IFTA Annual Meeting, a discussion was held
about the “majority” vs. “minority” method of computing interest on an audit. Basically, the majority method interest is
calculated on amounts due through the end of the audit period and then credits are applied. In the minority method, credits
are applied based on the due date of the period of the credit, and interest is due only on the net tax.
BOARD INTERPRETATION:
The IFTA Articles of Agreement do not require a specific method of interest calculation on an audit. Both the “majority”
method and “minority” method are acceptable
R1230.300 IFTA Ballot 5-1998 amended IFTA Articles of Agreement Section R1230.300 to clarify how audit interest must be
calculated and was effective October 23, 1998.
R1230.300 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the language
more consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R1230.300 IFTA Ballot 6-2004 amended the IFTA Articles of Agreement Section R1230.300.005 to clearly define how
interest is calculated and was effective July 1, 2006. responsibilities in bankruptcy proceedings and was
effective July 1, 2000.
R1240.300 IFTA Ballot 11-1996 amended IFTA Articles of Agreement Section R1240.300 to specifically state how audit
interest must be calculated effective July 1, 1998.
R1240.300 See commentary at IFTA Articles of Agreement Section R1230 regarding collection of interest for all jurisdictions.
R1250 Ballot 2-1998 amended IFTA Articles of Agreement Section R1250 to add provisions concerning a jurisdiction’s
responsibilities in bankruptcy proceedings and was effective July 1, 2000.
R1260 IFTA Ballot 12-92 amended IFTA Articles of Agreement Section R1250 to allow jurisdictions to waive interest if statutory
authority is present, effective January 1, 1993.
R1260 Prior to July 2000, IFTA Articles of Agreement Section R1260 was Section R1250.
R1260 IFTA Ballot 15-2004 amended the IFTA Articles of Agreement to provide greater clarity and make the
language more consistent with all of the IFTA Governing Documents and was effective January 1, 2006.
R1270 See commentary at IFTA Articles of Agreement Sections R410.200 and R420.200 regarding the applicability of a base
jurisdiction’s own administrative procedures laws.
R1270 Prior to July 2000, IFTA Articles of Agreement Section R1270 was Section R1260.
R1270 IFTA Ballot 5-2005 amended the IFTA Articles of Agreement to provide that notices regarding license revocation shall be
sent in accordance with jurisdiction law and was effective January 1, 2007.
IFTA ARTICLES OF AGREEMENT 63 January 1996
Effective July 1, 1998
Last Revised January 2007
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IFTA ARTICLES OF AGREEMENT 64 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE XIII
R1300 AUDITS
R1310 LICENSEE AUDITS
The base jurisdiction shall audit its licensees on behalf of all member jurisdictions. This
shall not preclude another jurisdiction from also auditing a licensee. In that event, that
jurisdiction shall pay all its audit expenses.
R1320 UNLICENSED CARRIER AUDITS
If a jurisdiction determines through a fuel use tax audit that a person required to become
licensed with that jurisdiction under this Agreement has failed to do so, the jurisdiction is
specifically authorized to assess and collect any and all fuel taxes due from such person
for all member jurisdictions in accordance with IFTA Articles of Agreement Sections
R1100 and R1200.
*R1330 AUDIT REQUIREMENTS
Audits conducted by member jurisdictions shall be in compliance with all requirements
established in the Agreement, Procedures Manual, and Audit Manual.
R1340 AUDIT MANUAL
The Audit Manual contains guidelines, forms, and audit methods which are in accordance
with accepted audit practices, including criteria for sampling and selection procedures and
audit file selection.
The guidelines will relate to various attributes that may be indicative of noncompliance.
Proof of operation information, such as vehicle observations, enforcement citations, etc.,
from all member jurisdictions will be used by the base jurisdiction in testing audit attributes.
This proof of operation information will also be used in motor carrier audits to determine if
specific trips associated with such information are accounted for in carrier records.
R1350 REVIEW/REVISION OF AUDIT REQUIREMENTS
.100 The Audit Committee shall review the audit requirements of this Agreement at
least once every three years.
.200 Proposed changes shall be approved and adopted by the member jurisdictions in
accordance with IFTA Articles of Agreement Section R1600.
.300 Changes to the Audit Manual shall not be effective with less than a one-year
notification, unless unanimously approved for an earlier date.
IFTA ARTICLES OF AGREEMENT 65 January 1996
Effective July 1, 1998
Last Revised January 2007
*R1360 RE-AUDIT AND RE-EXAMINATION
.100 A member jurisdiction may re-examine a base jurisdiction's audit findings if the
member jurisdiction reviews the audit work papers and, within 45 days of receipt
of the Interjurisdictional Audit Report by the member jurisdiction, notifies the
base jurisdiction of any errors found during such review and of its intention to
conduct the re-examination. Such re-examination by a member jurisdiction must
be based exclusively on the audit sample period utilized by the base jurisdiction
in conducting its audit.
.200 A member jurisdiction may re-audit a licensee if said member jurisdiction notifies
the base jurisdiction and the licensee of reasonable cause for the re-audit.
.300 The re-audit or re-examination by a member jurisdiction must be performed in
cooperation with the base jurisdiction. An adjustment to original audit findings as
a result of such re-audit or re-examination must be reconciled with the original
audit findings issued by the base jurisdiction. New audit findings shall be issued
by the base jurisdiction. A member jurisdiction conducting a re-audit or reexamination
shall pay its own expenses.
R1370 JOINT AUDITS
In the event that the base jurisdiction requests assistance from other member jurisdictions
in the conduct of an audit, all members participating in the audit shall receive credit toward
achieving their audit requirements. In that event, the jurisdictions shall pay all the audit
expenses.
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IFTA ARTICLES OF AGREEMENT 66 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XIII
R1330 See commentary at IFTA Audit Manual A310 and A320 regarding computation of a jurisdiction’s high and low distance
audit accountability.
R1330 See commentary at IFTA Audit Manual A660.100 regarding required licensee audit report content.
R1360 At the IFTA annual business meeting in Denver, Colorado, in July 1990, southern states expressed concerns regarding audit
policies and procedures. Ballot 90-316-1 became effective January 14, 1992, replacing IFTA Articles of Agreement Section
R1360 and modifying procedures for re-audit of a licensee.
R1360.100 IFTA Ballot 6-1997 amended the IFTA Articles of Agreement Section R1360.100 by replacing the term “audit
findings” with “Interjurisdictional Audit Report” and was effective July 1, 1999.
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IFTA ARTICLES OF AGREEMENT 67 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE XIV
*R1400 APPEAL PROCEDURES
The appeal process shall be conducted in accordance with the procedures established by the
base jurisdiction. R1410, R1420, and R1430 only apply where a base jurisdiction does not have
provisions in its administrative procedures laws for appeals of actions or audit findings.
*R1410 REQUEST FOR HEARING
A licensee or applicant may appeal an action or audit finding issued by the commissioner
of any member base jurisdiction by making a written request for a hearing within 30 days
after the service of notice of the original action or finding. If the hearing is not requested in
writing within 30 days, the original finding or action is final.
R1420 NOTICE OF HEARING
The hearing shall be held expeditiously, but may be continued for reasonable cause being
shown by either party. The base jurisdiction shall give at least 20 days' written notice of
the time and place of the hearing.
R1430 PROCEDURES FOR HEARING
.100 The appellant may appear in person and/or be represented by counsel at the
hearing and is entitled to produce witnesses, documents, or other pertinent
material to substantiate the appeal.
.200 If the licensee appeals an assessment for one or more jurisdictions, it will be the
responsibility of the base jurisdiction to participate in the appeal process on behalf
of the other jurisdictions.
R1440 NOTICE OF FINDINGS
The base jurisdiction will notify the appellant of the findings of fact and the ruling on the
appeal.
IFTA ARTICLES OF AGREEMENT 68 January 1996
Effective July 1, 1998
Last Revised January 2007
R1450 FURTHER REQUESTS FOR APPEAL
.100 Further appeal of any jurisdiction's finding will proceed in accordance with that
jurisdiction's laws.
.200 In the case of an audit, if the licensee is still in disagreement with the original
finding, the licensee may request any or every jurisdiction to audit the licensee's
records. Each jurisdiction to whom a request is made may elect to accept or deny
the request. Each jurisdiction electing to audit the licensee's records will audit only
for its own portion of the licensee's operations. The licensee shall make records
available at the office of the jurisdiction or at a place designated by the jurisdiction
or pay reasonable per diem and travel expenses associated with conducting an
audit at the licensee's place of business.
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IFTA ARTICLES OF AGREEMENT 69 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XIV
R1400 IFTA Ballot 2-2002 amended IFTA Articles of Agreement R1400 to add the language that R1410, R1420 and R1430 only
apply if no jurisdiction laws for appeals exist and was effective January 1, 2004.
R1410 See commentary at IFTA Articles of Agreement Sections R410.200 and R420.200 regarding the applicability of a base
jurisdiction’s own administrative procedures laws.
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IFTA ARTICLES OF AGREEMENT 70 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE XV
R1500 MEMBERSHIP
*R1505 APPLICATION FOR MEMBERSHIP
Any jurisdiction may apply for entry into the Agreement by submitting the prescribed
adopting resolution and attachments to the repository for balloting by member jurisdictions.
Entry into the Agreement constitutes membership in the International Fuel Tax
Association, Inc. which administers the Agreement.
*R1510 CONDITIONS FOR MEMBERSHIP
The applicant shall agree to abide by all terms, conditions, and requirements of the
Articles of Agreement, Procedures Manual, Audit Manual and the Bylaws of the
Association and to:
.100 Comply with all audit policies and procedures, including employment of a sufficient
number of auditors to assure that audit of IFTA licensees are completed as
prescribed in section A310 of the IFTA Audit Manual.
.200 Submit to a program compliance review to determine compliance with the
Agreement. Such review shall be performed after one year of implementation and
once every four years thereafter unless a review is ordered as prescribed by his
Agreement; and
.300 Submit an annual report to the repository as specified in the Procedures Manual.
*R1515 ADOPTING RESOLUTION
The adopting resolution shall contain statements relating to the conditions for membership
into the Agreement and shall include the following:
.100 A copy of the enabling statute authorizing the jurisdiction to enter into and abide by
the obligations of the Agreement;
.200 A statement of taxable fuels and tax rates for these fuels; and
.300 A statement as to the number of:
.005 Prospective licensees based in the jurisdiction;
.010 Audit personnel who will be dedicated to auditing under this Agreement;
and
IFTA ARTICLES OF AGREEMENT 71 January 1996
Effective July 1, 1998
Last Revised January 2007
.015 Supervisory and clerical personnel who will be dedicated to receipting,
processing, and disbursing funds received under the provisions of the
Agreement.
R1520 APPROVAL OF ADOPTING RESOLUTION
Ballots shall be mailed by the repository to all member jurisdictions via certified mail, return
receipt requested. Entry shall be granted to the applicant unless more than one negative
vote is received. Failure of a jurisdiction to submit its vote on the ballot within 120 days of
receipt shall be considered a vote for approval of the application.
R1525 MEMBERSHIP EFFECTIVE DATE
Membership shall become effective upon approval by the member jurisdictions and the
payment of the required membership fees.
*R1530 IMPLEMENTATION EFFECTIVE DATE
.100 The effective date for implementation of the Agreement by a new member shall be
January 1 or July 1 following two complete calendar quarters after the membership
effective date; or
.200 An alternate implementation date stated in the adopting resolution and agreed to
by all member jurisdictions.
R1535 IMPLEMENTING LICENSING IN THE NEW JURISDICTION
.100 The new member jurisdiction shall forward to each member jurisdiction a complete
printout of all member jurisdiction carriers who are presently fuel tax licensees and
who operate in the new member jurisdiction.
.200 Each member jurisdiction shall forward to the new member jurisdiction a complete
printout of all accounts in the new jurisdiction that presently hold a member
jurisdiction fuel tax license.
.300 The new member jurisdiction shall issue IFTA credentials to their carriers,
canceling any existing fuel tax accounts.
.400 Upon receipt of the IFTA applications for the new member jurisdiction, the member
jurisdiction shall cancel the fuel tax accounts of those carriers based in the new
member jurisdiction.
R1540 FAILURE TO IMPLEMENT
If the Agreement is not implemented on the implementation effective date, the applicant
shall be required to re-apply.
IFTA ARTICLES OF AGREEMENT 72 January 1996
Effective July 1, 1998
Last Revised January 2007
*R1545 ACTIVE MEMBERSHIP STATUS
To retain active membership status, the jurisdiction must:
.100 Collect and transfer fees for other jurisdictions in a timely manner;
.200 Pay membership fees in a timely manner; and
.300 Comply with all other provisions of the Agreement.
Voting privileges are granted only to members holding active status.
R1550 MEMBERSHIP CANCELLATION
A member may withdraw from the Agreement by giving at least two full calendar quarters'
written notification to all member jurisdictions. Each member jurisdiction shall notify each
of its licensees of the cancellation at least one full calendar quarter prior to the cancellation
date. However, cancellation by one jurisdiction shall not affect this Agreement between
other jurisdictions. All evidence of motor fuels licensing issued under the Agreement by the
canceling jurisdiction shall be valid until the effective date of the cancellation.
*R1555 COMPLIANCE MATTERS
.100 Dispute Resolution Process
Disputes concerning issues of compliance with the International Fuel Tax
Agreement may be resolved pursuant to the IFTA Dispute Resolution Process.
The IFTA Dispute Resolution Process may be utilized to resolve only:
.005 Compliance disputes between member jurisdictions; and
.010 Compliance disputes between member jurisdictions and IFTA licensees in
those matters where no administrative remedy to the IFTA licensee is
available within the member jurisdiction involved in the dispute.
Compliance disputes subject to this section shall not include disputes
between member jurisdictions and IFTA licensees over matters of
substantive jurisdiction law, including but not limited to, laws governing the
imposition, assessment, and collection of jurisdiction motor fuel use taxes
collected pursuant to the International Fuel Tax Agreement.
IFTA ARTICLES OF AGREEMENT 73 January 1996
Effective July 1, 1998
Last Revised January 2007
.200 Expulsion Process
.005 The IFTA, Inc. Board of Trustees shall request a resolution to expel a
member jurisdiction which has failed to bring its IFTA program into
compliance one year following its loss of voting power under the penalty
provisions of the IFTA Dispute Resolution Process.
.010 The Board shall issue a resolution of expulsion to the IFTA membership for
approval. A ballot by which a member jurisdiction may vote on the
resolution will be attached to the resolution. A copy of the resolution will be
sent to the jurisdiction which is the subject of the resolution, but said
jurisdiction will not be allowed to vote on the resolution.
.015 A resolution expelling a member jurisdiction from the Agreement shall
require the affirmative vote in writing of three-fourths of the total member
jurisdictions, excluding the jurisdiction which is the subject of the resolution.
.020 Member jurisdictions will have sixty (60) days from the date of issuance of
the resolution to vote on the resolution of expulsion. Failure of a member
jurisdiction to submit its vote shall be deemed a vote against the resolution
of expulsion.
.025 If the member jurisdictions approve the resolution for expulsion, the Board
of Trustees will notify the subject jurisdiction of its expulsion from the
Agreement. A copy of the resolution will be forwarded to the Governor of
the subject United States jurisdiction or the Premier of the subject
Canadian Province and to the Secretary of Transportation of the United
States.
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IFTA ARTICLES OF AGREEMENT 74 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XV
R1505 Ballot 90-312-1 amended the Articles of Agreement to provide for the establishment of the International Fuel Tax
R1510 Association, Inc., effective February 25, 1991. The Articles of Agreement sections affected by ballot were R1510.100,
R1510.200, R1510.300, R1515, R1545, R1810.100, R1810.200, R1810.300, R1810.400, R1810.600, R1820.100, and
R1820.200.
R1510.100 See commentary at IFTA Audit Manual A660.100 regarding required licensee audit report content.
R1510.100 {EDITOR’S NOTE: In light of the passage of Ballot 14-1995 effective July 1, 1997, Commentary resulting
from the ratification of Issue 8, Question 1 is for historical reference only. Language regarding the
implementation of the IFTA audit requirements can now be found at IFTA Audit Manual Section A310.]
R1510.100 In July 1991, the membership unanimously ratified inclusion of Consensus Board Interpretation, Issue 8, questions
1 and 2, as narrative to IFTA Articles of Agreement Section R1510.100.
QUESTION 1: Most states do not begin their IFTA audit program until at least one year's worth of returns are filed. Does the fiveyear
audit requirement begin on the date the state's audit program begins, on the date the state's membership
became effective, on the date the state became approved for membership, or on the date that the first three-year
audit can be conducted (three years after the first IFTA return was filed)?
BOARD INTERPRETATION:
The Board consensus was that a jurisdiction should begin its IFTA audit program on its implementation date. The
beginning of an IFTA audit program should include, but not be limited to, the hiring of sufficient audit personnel to
meet the audit requirements and development and implementation of an auditor training program. Audits will not
be performed until one year from the jurisdiction's implementation date.
QUESTION 2: Effective January 14, 1992, the IFTA audit requirement will change due to Ballot 90-316-2 which changes the
percentage from "25 percent every three years to "15 percent every five years". Is the change retroactive or do
states have to provide 25 percent coverage up to the effective date and then 15 percent thereafter?
BOARD INTERPRETATION:
The Board consensus was that the change in percentage of audits from 25 percent every three years to 15 percent
every three [sic] years is retroactive to the date of the jurisdiction's implementation.
R1510.100 Ballot 90-316-2 amended IFTA Articles of Agreement Section R1510.100, modifying the minimum percentage of
audits to be performed in a five-year period. The effective date of Ballot 90-316-2 was January 14, 1992.
R1510.100 In July 1996, the membership unanimously ratified inclusion of Consensus Board Interpretation, Issue 49-96, as
narrative to the IFTA Articles of Agreement Section R1510.100.
ISSUE: For jurisdictions implementing on dates other than January 1, can the required 5-year/15% audit requirement be
proportionally reduced to equate to the number of months the jurisdiction is in IFTA that year?
BOARD INTERPRETATION:
For a jurisdiction implementing on a date other than January 1, an average of 3% per year to equate to the required audits of
15% of a jurisdiction's licensees in a 5-year period, will be proportionally reduced to equate to the number of months in IFTA
that year. The requirement will be based on the full calendar year for each year after implementation.
R1510.100 IFTA Ballot 4-2001 amended IFTA Articles of Agreement Section R1510.100 to state that a sufficient number of
auditors must be employed to complete audits as prescribed in the IFTA Audit Manual and was effective
November 26, 2001.
IFTA ARTICLES OF AGREEMENT 75 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XV Continued
R1510.200 IFTA Ballot 4-1995 amended IFTA Articles of Agreement Section R1510.200 to change terminology from
“operations” review to “program compliance review” and to make other changes consistent with a long-range
program compliance package ratified by the membership at the 1995 Annual Business Meeting and was effective
January 1, 1996.
R1515 See commentary at IFTA Articles of Agreement Section R1505 regarding the establishment of the International Fuel Tax
Association.
R1530.100 IFTA Ballot 3-92 amended the IFTA Articles of Agreement Section R1530 to state that new jurisdictions must begin
implementation on January 1 or July 1, effective January 1, 1993.
R1545 See commentary at IFTA Articles of Agreement R1505 regarding the establishment of the International Fuel Tax Association.
R1555 IFTA Ballot 7-1995 amended IFTA Articles of Agreement R1555 to add a provision to allow a dispute resolution process
pursuant to which member jurisdictions may resolve disputes among each other and to allow restrictive use of the process by
IFTA licensees. The expulsion provisions of this Article were also amended. Ballot 7-1995 was effective July 1, 1997.
[This area intentionally left blank.]
IFTA ARTICLES OF AGREEMENT 76 January 1996
Effective July 1, 1998
Last Revised January 2007

[Sapphire Capital]

ARTICLE XVI
*R1600 AMENDMENTS
Proposals for amendment of the Agreement, Procedures Manual, or Audit Manual may be made
by any member jurisdiction, the Audit Committee, the Agreement Procedures Committee, the Law
Enforcement Committee, the Program Compliance Review Committee or the Board of Trustees of
the Association.
*R1605 SUBMISSION OF PROPOSALS FOR COMMENT
.100 A proposed amendment is to be submitted to the repository. The repository will
circulate the proposed amendment as a Full Track Preliminary Ballot Proposal
("Full Track proposal") to all member jurisdictions and the standing committees of
the Association for a 45-day preliminary comment period.
.200 At the end of the comment period, the Full Track proposal is to be submitted to the
repository for consideration at the next meeting of the member jurisdictions. The
comment period must be completed and notification given to the repository at least
45 days before the next meeting of the member jurisdictions.
.300 The repository will notify the member jurisdictions of Full Track proposals that have
qualified for consideration at the next meeting of the member jurisdictions and
provide the text of the proposals and any comments received.
R1610 SUBMISSION OF PROPOSALS WITHOUT PRELIMINARY COMMENT
A proposed amendment may also be submitted to the repository for consideration as a
Short Track Preliminary Ballot Proposal ("Short Track" Proposal). The preliminary
comment period requirement may be waived if:
.100 A proposed amendment is submitted to the repository at least 45 days before the
next meeting of the member jurisdictions for consideration at that meeting; and
.200 At the next meeting of the member jurisdictions, the proposed amendment
receives the affirmative vote of at least three-fourths of the total member
jurisdictions of the Agreement.
R1615 OPEN MEETING DISCUSSION
No amendment will be adopted without a discussion of the amendment at an open
meeting of the commissioners. All Full Track and Short Track proposals will be discussed
in an open meeting of the commissioners.
IFTA ARTICLES OF AGREEMENT 77 January 1996
Effective July 1, 1998
Last Revised January 2007
R1620 "SHORT TRACK" VOTING
.100 In the open meeting, the sponsor may request the member jurisdictions to vote for
or against placing a Full Track proposal on the Short Track ballot process
described in IFTA Articles of Agreement Section R1625. An affirmative vote of at
least three-fourths of the total member jurisdictions is required to place a ballot on
the Short Track ballot process.
.200 In the open meeting, a vote must be made by the member jurisdictions for or
against continuing each Short Track proposal on the Short Track ballot process
described in IFTA Articles of Agreement Section R1625. An affirmative vote of at
least three-fourths of the total member jurisdictions is required for continuation of a
ballot on the Short Track ballot process.
R1625 "SHORT TRACK" 30-DAY BALLOT PROCEDURES
Proposals that receive the required three-fourths vote at the open meeting of the
commissioners may proceed as follows:
.100 Within 30 days of the open meeting, the sponsoring jurisdiction or committee must
submit its proposal to the repository for circulation as a preliminary ballot proposal.
.200 The repository will circulate the preliminary ballot proposal to the member
jurisdictions and the standing committees of the Association for a 30-day comment
period.
.300 At the end of the 30-day comment period, the preliminary ballot proposal is
submitted to the repository as a final ballot proposal and circulated, together with
all comments received, to the member jurisdictions. Jurisdictions have 30 days in
which to vote on final ballot proposals submitted under this section.
*R1630 "FULL TRACK" BALLOT PROCEDURES
Full Track proposals that are not voted on at the open meeting or do not receive the threefourths
affirmative vote may still proceed as follows:
.100 Within 45 days of the open meeting, the sponsoring jurisdiction or committee must
submit its proposal to the repository for circulation as a preliminary ballot proposal.
IFTA ARTICLES OF AGREEMENT 78 January 1996
Effective July 1, 1998
Last Revised January 2007
.200 The repository will circulate the preliminary ballot proposal to the member
jurisdictions and the standing committees of the Association for a 45-day comment
period.
.300 At the end of the 45-day comment period, the preliminary ballot proposal is
submitted to the repository as a final ballot proposal and circulated, together with
all comments received, to the member jurisdictions. Jurisdictions have 60 days in
which to vote on final ballot proposals submitted under this section.
R1635 VOIDED "SHORT TRACK" PROPOSALS
Short Track proposals that do not receive the three-fourths affirmative vote are void.
Sponsoring jurisdictions or committees may again submit the proposal through the
process outlined in IFTA Articles of Agreement Section R1605. However, the proposal is
ineligible for the expedited processes outlined in Sections R1610 or R1620.
*R1640 AMENDMENTS TO PRELIMINARY BALLOTS
A preliminary ballot proposal may be amended to incorporate comments received in the
comment period or to make technical or grammatical changes prior to circulation as a final
ballot proposal. If the changes made to a preliminary ballot proposal are substantive, it
must be resubmitted as a new preliminary ballot proposal for an additional 45-day
comment period. The sponsoring jurisdiction or committee has discretion to determine
whether changes are substantive or non-substantive. However, if two or more jurisdictions
indicate in writing to the repository that they consider a change substantive, it must be
resubmitted for an additional 45-day comment period.
R1645 FINAL BALLOT PROPOSAL REQUIREMENTS
Final Ballot proposals must contain the following:
.100 The precise language to be considered;
.200 The language originally contained in the preliminary ballot proposal;
.300 All comments received during the comment period;
.400 The date by which voting must be completed; and
.500 The effective date of the amendment.
IFTA ARTICLES OF AGREEMENT 79 January 1996
Effective July 1, 1998
Last Revised January 2007
*R1650 ACCEPTANCE OF AMENDMENTS
.100 Votes on amendments or interpretations must be cast by the commissioner or a
delegate named in writing by the commissioner.
.200 An affirmative vote in writing of three-fourths of the total member jurisdictions is
required to amend the Agreement, Procedures Manual, or Audit Manual. For
purposes of this section, a vote submitted electronically through a mechanism
provided by the International Fuel Tax Association, Inc. is deemed a vote in
writing.
.300 Jurisdictions may abstain from voting, but a final ballot proposal may still not be
adopted without the affirmative vote of three-fourths of the total member
jurisdictions.
.400 Jurisdictions that do not vote on an amendment within the required time limits are
considered to have voted in the negative, except as provided in IFTA Articles of
Agreement Section R1655.
*R1655 EFFECTIVE DATE OF AMENDMENTS
The effective date of all amendments, unless otherwise specified, is the first day of
January or July, whichever occurs first, following the completion of 12 complete months
following the close of the voting period. An alternate effective date may be allowed if it
receives the support of three-fourths of the total member jurisdictions. If an alternate
effective date is requested, it must be voted separately from the amendment.
Jurisdictions that do not vote on an alternate effective date within the required time limits
are considered to have voted in the negative.
R1660 WITHDRAWAL OF AMENDMENT PROPOSALS
An amendment proposal may be withdrawn by the sponsoring jurisdiction or committee at
any time during the amendment process.
IFTA ARTICLES OF AGREEMENT 80 January 1996
Effective July 1, 1998
Last Revised January 2007
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IFTA ARTICLES OF AGREEMENT 81 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XVI
R1600 The current ballot process was determined to be cumbersome and too lengthy. Ballot 90-312-2 became effective January 7,
1992, amending IFTA Articles of Agreement Section R1600 and streamlining the ballot process.
R1600 IFTA Ballot 9-2000 amended IFTA Articles of Agreement R1600 to authorize the Law Enforcement Committee and the
Program Compliance Review Committee to submit proposals for amendment to the IFTA governing and was effective
October 24, 2000.
R1605.100 IFTA Ballot 2-2003 Amended IFTA Articles of Agreement Subsection R1605.100 to reduce the preliminary
comment period for full track ballot proposals from 90 days to 45 days and was effective January 1, 2005.
R1630 IFTA Ballot 2-2001 amended IFTA Articles of Agreement R1630 to change the sponsor revision period and the second
comment period from 90 to 45 days and was effective November 26, 2001.
1630.300 IFTA Ballot 2-2003 amended IFTA Articles of Agreement Subsection R1630.300 to reduce from 90 days to 60
days the time within which jurisdictions may vote on full track final ballot proposals and was effective January 1,
2005.
R1640 IFTA Ballot 2-2001 amended IFTA Articles of Agreement R1640 to change the additional comment period from 90 to 45
days and was effective November 26, 2001.
R1650.200 IFTA Ballot 2-2001 amended IFTA Articles of Agreement R1650.200 to state that a vote submitted
electronically is considered a vote in writing and was effective November 26, 2001.
R1655 IFTA Ballot 5-2004 amended the IFTA Articles of Agreement, Section R1655 to change the requirements of R1655
to be consistent with R1650 and was effective July 1, 2006.
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IFTA ARTICLES OF AGREEMENT 82 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE XVII
*R1700 ISSUE PAPERS AND CONSENSUS BOARD INTERPRETATIONS
R1710 ISSUE PAPERS
Requests for clarification/interpretation of IFTA requirements stated in the Articles of
Agreement, Procedures Manual, or Audit Manual may be submitted to IFTA, Inc. by any
member jurisdiction, established committee, or Board of Trustees of the Association.
*R1720 CONSENSUS BOARD INTERPRETATIONS
.100 The Board of Trustees of the Association shall issue Consensus Board
Interpretations in response to requests for clarification or notify the requesting
party why a Consensus Board Interpretation will not be issued. Consensus Board
Interpretations will be presented for consideration at the annual business meeting
and require an affirmative vote of three-fourths of the member jurisdictions for
ratification and inclusion as commentary in the IFTA governing documents.
.200 An included commentary is binding on the member jurisdictions, unless the section
to which the commentary refers is subsequently amended as provided in this in
this agreement.
.300 Interpretations which fail to receive sufficient votes for ratification may be balloted
according to the process outlined in R1600.
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IFTA ARTICLES OF AGREEMENT 83 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XVII
R1700 Ballot 15-1995 amended IFTA Articles of Agreement to add R1700 to formalize the process by which the Board of
Trustees of the Association interprets the governing documents and offer such interpretations for ratification by the
membership and was effective July 1, 1997.
R1720 IFTA Ballot 3-2001 amended IFTA Articles of Agreement Section R1710 to require that the IFTA, Inc. Board of Trustees
either issue an interpretation or notify the requesting party why such an interpretation will not be issued and was effective July
1, 2003.
R1720.200 IFTA Ballot 3-2001 added IFTA Articles of Agreement Subsection R1720.200 which makes added commentary
binding on the member jurisdictions unless the section to which the commentary applies is subsequently
changed by ballot and was effective July 1, 2003. In addition, the previous Subsection R1720.200 was
renumbered to R1720.300.
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IFTA ARTICLES OF AGREEMENT 84 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE XVIII
R1800 ADMINISTRATION
*R1810 INTERNATIONAL FUEL TAX ASSOCIATION, INC.
There is established the International Fuel Tax Association, Inc. (hereinafter referred to as
"the Association") which is responsible for administering the Agreement. Entry into the
Agreement constitutes membership in the Association.
.100 Association Bylaws
The Bylaws of the Association shall outline and govern the establishment,
selection, and responsibilities of the Board of Trustees and officers. The Bylaws
shall also govern the membership of the Audit Committee, the Agreement
Procedures Committee, and the Industry Advisory Committee, and govern the
creation and membership of other standing and special committees. Member
jurisdictions agree to abide by the Bylaws as a condition for participation in the
Agreement.
.200 Committees
.010 Procedures Committee
There is established an Agreement Procedures Committee which is
responsible for the review and maintenance of the IFTA Procedures
Manual.
.020 Audit Committee
There is established an Audit Committee which is responsible for the
review and maintenance of the IFTA Audit Manual.
.030 Industry Advisory Committee
There is established an Industry Advisory Committee to advise and assist
both the Agreement Procedures Committee and the Audit Committee.
.040 Program Compliance Review Committee
There is established a Program Compliance Review Committee which shall
be selected as outlined in the IFTA Program Compliance Review Guide
and shall perform such functions and duties delineated in that Guide. The
Program Compliance Review Committee shall also perform the functions
and duties as otherwise provided in these Articles of Agreement.
IFTA ARTICLES OF AGREEMENT 85 January 1996
Effective July 1, 1998
Last Revised January 2007
.050 Law Enforcement Committee
There is established a Law Enforcement Committee to advise the IFTA
membership concerning enforcement matters through reports to the IFTA,
Inc. Board of Trustees. Committee members will be representatives of law
enforcement agencies of member jurisdictions having the responsibility to
enforce laws affecting motor carriers, including IFTA. Issues will be
assigned to the Law Enforcement Committee by the Board.
.060 Dispute Resolution Committee
There is established a Dispute Resolution Committee to hear disputes filed
pursuant to Section R1555 herein. Members of the Committee will be
selected pursuant to the Committee Charter and will perform the functions
as outlined in the Dispute Resolution Process.
.300 Membership Fees
To cover administrative costs, a membership fee shall be levied on every member
jurisdiction. The fee shall be paid annually and be based upon a budget adopted
by majority vote at the annual IFTA meeting. The fee shall be equally prorated
among current members. The fees will be based upon a fiscal year of July 1
through June 30.
.400 New Member Fees
A new member being admitted to the Agreement will be assessed a membership
fee as follows:
The annual amount assessed each current member, divided by 12, and
multiplied by the number of full months remaining in the fiscal year from
date of receipt of the necessary ballots approving membership.
Fees will not be refunded to a jurisdiction failing to implement the Agreement.
.500 Annual Meeting
The member jurisdictions shall convene an annual IFTA meeting for the purpose of
administering the Agreement.
IFTA ARTICLES OF AGREEMENT 86 January 1996
Effective July 1, 1998
Last Revised January 2007
*R1820 REPOSITORY
.100 Selection
A repository shall be selected by majority vote of the member jurisdictions.
.200 Duties
The repository shall perform duties as specified in the Agreement, the Association
Bylaws, and the contract with the Association.
.005 All agendas, meeting notices, rate increases, and other IFTA information
shall be mailed from the repository.
.010 The Repository is responsible for revising and maintaining the Agreement,
the Procedures Manual, and the Audit Manual.
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IFTA ARTICLES OF AGREEMENT 87 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XVIII
R1810.100 See commentary at IFTA Articles of Agreement Section R1510 regarding establishment of the International
R1810.200 Fuel Tax Association.
R1810.300
R1810.400
R1810.200 IFTA Ballot 2-2005 amended IFTA Articles of Agreement Section R1810 by renaming R1810.200 and renumbering
thereafter to add subsections regarding the IFTA Standing Committees. In addition, the Dispute Resolution
Committee was added as a Standing Committee. All changes were effective January 1, 2007.
R1810.500 IFTA Ballot 5-1995 amended IFTA Articles of Agreement Section R1810.500 to create the Program Compliance
Review Committee as a standing committee and was effective January 1, 1997.
R1810.600 IFTA Ballot 2-1994 added IFTA Articles of Agreement R1810.600 to create the Law Enforcement Committee as a
standing committee and was effective July 1, 1996.
R1810.700 See commentary at IFTA Articles of Agreement Section R1510 regarding the establishment of the International
Fuel Tax Association.
{Editor’s Note: The references to R1810.500, R1810.600 and R1810.700 above are to R1810.200.040, R1810.050 and R1810.300
as of January 1, 2007. See Commentary to R1810.200 above.}
R1820 See commentary at IFTA Articles of Agreement Section R1510 regarding the establishment of the International Fuel Tax
Association.
1992 Ballot 27-91 modified the IFTA Articles of Agreement for typographical, spelling and consistency error.
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[Sapphire Capital]

IFTA ARTICLES OF AGREEMENT 88 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE XIX
*R1900 COOPERATION WITH REGIONAL FUEL TAX AGREEMENT
Commentary
R1900 IFTA Ballot 9-1995 amended IFTA Articles of Agreement to add R1900 to provide for a cooperative agreement between the
members of the International Fuel Tax Agreement (IFTA) and the Regional Fuel Tax Agreement (RFTA). The cooperative
agreement would allow motor carriers to operate in and among the IFTA and RFTA jurisdictions with one set of credentials,
either IFTA or RFTA. Ballot 9-1995 was effective July 1, 1997.
R1900 IFTA Ballot 10-2001 amended IFTA Articles of Agreement to delete R1900 and was effective January 1, 2002.
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IFTA ARTICLES OF AGREEMENT 89 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE XX
*R2000 ADOPTION OF RECODIFICATION OF IFTA MANUALS
R2010 ADOPTION
.100 The January 1996 Recodification of the IFTA Articles of Agreement, the IFTA
Procedures Manual and the IFTA Audit Manual are adopted as the governing
documents of the International Fuel Tax Agreement effective July 1, 1998,
replacing the IFTA Articles of Agreement, the IFTA Procedures Manual and the
IFTA Audit Manual, dated February 1993 as revised.
.200 Any amendment to the IFTA Articles of Agreement, the IFTA Procedures Manual
or the IFTA Audit Manual (dated February 1993 as revised) passed during 1996
and 1997 shall, to the extent the amendment conflicts with said Recodification,
be deemed to amend such Recodification. R2010.200 expires January 1, 1999.
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IFTA ARTICLES OF AGREEMENT 90 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XX
R2000 IFTA Ballot 1-1996 added IFTA Articles of Agreement Section R2000 to adopt, as the IFTA governing documents, the
January 1996 draft of the Recodification of the IFTA Articles of Agreement, the IFTA Procedures Manual, and the IFTA
Audit Manual effective July 1, 1998.
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IFTA ARTICLES OF AGREEMENT 91 January 1996
Effective July 1, 1998
Last Revised January 2007
ARTICLE XXI
*R2100 INTERNATIONAL FUEL TAX ASSOCIATION, INC. (“IFTA, INC.”)
CLEARINGHOUSE
*R2110 IFTA, INC. CLEARINGHOUSE
There is established the IFTA, Inc. Clearinghouse (hereafter referred to as the
“clearinghouse”) which is responsible for the maintenance and administration of
licensee demographic and transmittal data transmitted by participating members.
The clearinghouse is also responsible for providing a mechanism for the
exchange of Interjurisdictional Audit Reports. The participating members may
electronically view and retrieve the clearinghouse data.
.100 “Participating members” are those jurisdictions that have entered into an
agreement with IFTA, Inc. to access the clearinghouse and that have
submitted licensee demographic or transmittal data to the clearinghouse.
.200 Licensee demographic data includes licensee name, address, IFTA
license number, license status and other information identified in the
IFTA, Inc. Clearinghouse Access Agreement.
.300 Transmittal data includes the information required in the IFTA Procedures
Manual Section P1040.
.400 Interjurisdictional Audit Reports include the information required in the
IFTA Audit Manual Section A660.200.
*R2120 REQUIRED EXCHANGE OF LICENSEE DEMOGRAPHIC AND
TRANSMITTAL DATA AND INTERJURISDICTIONAL AUDIT REPORTS
.100 Licensee Demographic Data
When the exchange of licensee demographic data is required of the
participating members by the IFTA Articles of Agreement and the IFTA
Procedures Manual, such requirements shall be deemed satisfied by the
successful and timely transmission of the data to the clearinghouse.
IFTA, Inc. shall be responsible for providing the data from the
participating members to all other member jurisdictions.
IFTA ARTICLES OF AGREEMENT 92 January 1996
Effective July 1, 1998
Last Revised January 2007
.200 Transmittal Data
When the exchange of a transmittal data listing is required among the
participating members by the IFTA Articles of Agreement and the IFTA
Procedures Manual, such requirements shall be deemed satisfied by the
successful and timely transmission of the data to the clearinghouse.
The participating members shall be required to provide a transmittal data
listing to all other member jurisdictions as required by the IFTA Procedures
Manual Section P1040.
.300 Interjurisdictional Audit Reports
When the exchange of Interjurisdictional Audit Reports is required among
the participating members by the IFTA Audit Manual, such requirements
shall be deemed satisfied by the successful and timely upload of the
reports to the clearinghouse for those jurisdictions that participate in the
clearinghouse.
The participating members shall be required to provide Interjurisdictional
Audit Reports to all other member jurisdictions as required by the IFTA
Audit Manual Section A690.200.
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IFTA ARTICLES OF AGREEMENT 93 January 1996
Effective July 1, 1998
Last Revised January 2007
Commentary to Article XXI
R2100 IFTA Ballot 11-1998 amended IFTA Articles of Agreement to add R2100 to establish an IFTA, Inc. information
clearinghouse and provisions concerning the exchange of data among member jurisdictions. Ballot 11-1998
was effective October 23, 1998
R2110 IFTA Ballot 2-2000 amended IFTA Articles of Agreement Section 2110 to remove references to Memoranda of
Understanding and to include references to the IFTA, Inc. Clearinghouse Access Agreement and was effective
October 24, 2000.
R2110 IFTA Ballot 15-2006 amended IFTA Articles of Agreement to ensure that by the distribution of Interjurisdictional
Audit Reports to participating jurisdictions via the IFTA, Inc. Clearinghouse, a jurisdiction is in compliance with
the applicable provisions of the IFTA Audit Manual and was effective November 21, 2006.
R2120.300 IFTA Ballot 15-2006 amended IFTA Articles of Agreement to add R2120.300 to ensure that by the
distribution of Interjurisdictional Audit Reports to participating jurisdictions via the IFTA, Inc.
Clearinghouse, a jurisdiction is in compliance with the applicable provisions of the IFTA Audit Manual and was effective November 21, 2006.
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