International Fuel Tax Agreement - Texas Comptroller of Public ...

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VII.License Cancellation,Suspension, Revocation andReinstatementLicense CancellationYou may cancel your IFTA license at any time, providedall reporting requirements and tax liabilities to all memberjurisdictions have been satisfied. You can check thecancellation box on the final IFTA quarterly tax return toindicate the end of operations under IFTA, or send a writtenrequest to this office.If you fail to notify the Comptroller to cancel your license,or fail to file an IFTA tax return, we may estimate a taxliability for you. Estimated tax liabilities may result in collectionactions.Upon cancellation, you must return the original IFTA licenseand all unused IFTA decals to the Comptroller’s office.Any jurisdiction can conduct a final audit upon cancellationof an IFTA license. You should retain all relevantrecords for four years after the due date of your last taxreturn.License Suspension and RevocationAn IFTA license may be suspended and/or revoked forfailure to comply with any of the IFTA provisions including,but not limited to:• failure to file a required IFTA tax return;• failure to remit all taxes due all member jurisdictions;or,• failure to pay and/or protest an audit assessmentwithin the established time period.DO NOT OPERATE QUALIFIED VEHICLES INYOUR FLEET WHILE YOUR IFTA LICENSE ISREVOKED OR SUSPENDED!We will notify all IFTA jurisdictions if we revoke or suspendyour IFTA license. IFTA licenses you hold in otherstates will also be revoked or suspended. If you operate aqualified motor vehicle in an IFTA jurisdiction after yourIFTA license has been revoked or suspended, you may besubject to a citation, a fine, a penalty and possible seizure.In addition, you may be required to purchase fuel trip permitsto travel into and through each member jurisdiction.License ReinstatementThe Comptroller can reinstate an IFTA license once thelicensee files all required tax returns and pays all outstandingliabilities due all member jurisdictions.The Comptroller may also require the licensee to post abond in an amount sufficient to satisfy any potential futureliabilities to all member jurisdictions.The Comptroller’s office will notify all member jurisdictionswhen a suspension or revocation has been released.VIII.Lease AgreementsEvery qualified motor vehicle leased to a carrier is subjectto the IFTA requirements to the same extent and in thesame manner as a qualified motor vehicle owned by thatcarrier. The most common questions surround the issueof who is liable for the tax and reporting. The followingguidelines are established based upon the type of businessactivity and the type of lease.Rental & Leasing–Long Term Leases: A lessor regularlyengaged in the business of leasing or renting motorvehicles without drivers for 30 or more days is consideredto be the responsible party.Rental & Leasing–Short Term Leases: In the case of alessor regularly engaged in the business of leasing or rentingmotor vehicles, without drivers, to others for 29 daysor less, the lessor must report and pay the fuel use tax unlessboth of the following two conditions are met:(1) The lessor has a written rental contract which designatesthe lessee as the party responsible for re portingand paying the fuel use tax; and(2) The lessor has a copy of the lessee’s IFTA fuel taxlicense, which is valid for the term of the rental.Household Goods Carriers: Household goods carriersusing independent contractors, agents, or service representatives,under intermittent leases, the party responsible formotor fuel use tax is:(1) The carrier if the qualified motor vehicle is being operatedunder the carrier’s jurisdictional operating authority.The base jurisdiction for IFTA tax reportingpurposes is the base jurisdiction of the carrier regardlessof where the vehicle is registered for vehicle registrationpurposes.8 IFTA Texas Guidebook
(2) The independent contractor, agent, or service representativeif the qualified motor vehicle is being operatedunder the jurisdictional operating authority ofthe independent contractor, agent, or service representative.The base jurisdiction, for IFTA reportingpurposes, is the base jurisdiction of the independentcontractor, agent, or service representative, regardlessof where the vehicle is registered.Independent Contractors–Short Term Leases: A carrierusing independent contractors under short-term leasesof 29 days or less, the lessor will report and pay all fueluse taxes.Independent Contractors–Long Term Leases: A carrierusing independent contractors under long term leases(30 days or more), the lessor and lessee will be given theoption of designating which of them will report and paythe motor fuel use tax. If there is no written agreement orcontract, or if the written document is silent regarding responsibilityfor reporting and paying fuel use tax, the lesseewill be responsible for reporting and paying fuel usetax. If the lessee (carrier) assumes responsibility througha written agreement or contract, the base jurisdiction, forIFTA tax reporting purposes, will be the base jurisdictionof the lessee, regardless of where the vehicle is registeredfor vehicle registration purposes by the lessor.No member jurisdiction requires the filing of such leasesand agreements, but they must be made available upon requestto another member jurisdiction.IX.Record-Keeping RequirementsMileage RecordsYou must maintain records to support the informationon your quarterly tax return. To satisfy the IFTA requirements,the mileage records you will need to keep on eachvehicle include:• date of trip (starting and ending);• trip origin and destination;• routes of travel;• beginning and ending odometer reading of the trip;• total trip miles;• mileage by jurisdiction;• power unit number or vehicle identification number(VIN);• vehicle fleet number;• registrant’s name; and• distance recaps for each jurisdiction in which thevehicle operated.See the Appendix for examples of trip sheets and monthlymileage/fuel recap sheets.The Comptroller may approve the use of acceptable onboardrecording devices, satellite tracking systems, or otherelectronic data recording systems to be used in lieu of,or in addition to, handwritten trip reports for record-keepingpurposes. A monthly record of the vehicle’s odometerreading must be maintained even when using an acceptedelectronic data recording device. The on-board recordingor vehicle tracking device must meet the following minimumdevice requirements:• the carrier must obtain a certificate from the manufacturercertifying that the design of the on-boardrecording or vehicle tracking device has been sufficientlytested to meet the requirements of IFTA;• the device and associated support systems must be(to the maximum extent practicable) tamperproofand must not permit altering of the informationcollected. Editing the original information collectedwill be permitted. All editing must be identified,and both the edited and original data must berecorded and retained;• the device shall warn the driver visually and/oraudibly that the device has ceased to function;• the device must time and date stamp all data recorded;• the device must not allow data to be overwrittenbefore the data has been extracted. The deviceshall warn the driver visually and/or audibly thatthe device’s memory is full and can no longerrecord data;• the device must automatically update a life-to-dateodometer when the vehicle is placed in motion orthe operator must enter the current vehicle odometerreading when the on-board recording or vehicletracking device is connected to the vehicle; and• the device must provide a method for the driverto confirm that the entered data is correct (e.g.,a visual display of the entered data that can bereviewed and edited by the driver before the data isfinally stored).It is the carrier’s responsibility to recalibrate the on-boardrecording device on mechanical or electronic installationsIFTA Texas Guidebook 9
Page 1: TexasGuideBookInternational Fuel Ta
Page 6 and 7: II.DefinitionsAnnual Reporting Peri
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Page 10 and 11: gallons delivered into qualified mo
Page 17 and 18: purchase (if taxes were paid at the
Page 19 and 20: XIII.AppendixTrip Mileage and Route
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