Canadian Fuel Tax Agreement

Under IFTA, air carriers report between jurisdictions the amount of fuel consumed and the distance travelled in each jurisdiction. Member jurisdictions cooperate to track, collect and share taxes on fuels such as gasoline, diesel, propane, gazohol, methanol, ethanol, natural gas and biodiesel. The International Fuel Tax Agreement (IFTA) is an agreement between the 48 lowest states in the United States and Canadian provinces to simplify the reporting of fuel consumption by road transportation companies operating in more than one jurisdiction. [1] Alaska, Hawaii and Canadian territories are not required to participate, but all of Canada and Alaska do. An exporting airline with IFTA obtains an IFTA license and two stickers for each qualified vehicle it operates. The carrier files a quarterly fuel tax report. This report is used to determine the net tax or refund due and redistribute taxes from collecting states to states that are due. IFTA is an agreement between U.S. and Canadian jurisdictions that allows for the consistent collection and distribution of fuel taxes paid by drivers traveling in multiple jurisdictions. Note: Licensed vehicles with IFTA registration information, including those with a license plate, may only use clear fuel.

The use of labelled fuel is not permitted. If you are an airline subject to the agreement, you may be bound by the new federal fuel pricing measures. For more information, see the technical information on fuel taxes on the Canadian government website. Prior to IFTA, each state had its own fuel taxation system and a tax permit for each state in which it worked. Most states have created ports of entry to issue permits and enforce tax collection, which has been a burden on the truck industry and states. Pre-IFTA trucks traded intergovernmentally carried special license plates (“bingo plates”) on which were affixed the approval stickers of each State. This has been ineffective and has proven costly for each state. is a cooperative agreement between Canadian provinces and most U.S. states to make it easier for airlines to report the fuels they use and pay taxes. Since Québec City is a member jurisdiction under the International Fuel Tax Agreement (IFTA), you do not have to file fuel tax returns in each member jurisdiction where you travel. An individual driving licence allows qualified vehicles to circulate conditionally in another jurisdiction..

. . .