IFTA - International Fuel Tax Agreement

To simplify the reporting of fuel taxes paid for carriers operating in more than one jurisdiction among Canadian provinces and U.S. states, the International Fuel Tax Agreement (IFTA) was introduced.

Register for IFTA with North Carolina, if your qualifying commercial motor vehicle used, designed or maintained to transport property or passengers and:

  • Having two (2) axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds (11,797 kilograms)
  • Have three (3) or more axles, regardless of weight; or
  • Is used in combination, when the weight of such combination exceeds 26,000 pounds (11,797 kilograms) gross vehicle or registered gross vehicle weight.

Qualified motor vehicle does not include recreational vehicles. In order to qualify as a recreational vehicle, the vehicle shall not be used in connection with any business endeavor. Recreational vehicles include motor homes, pickup trucks with attached campers and buses used exclusively for personal pleasure by an individual.

IFTA License & Decals

Use Form Gas-1274 to request a Motor Carrier Application for License and Decals from the North Carolina Department of Revenue, Excise Tax Division. Obtain the form online at www.dornc.com or by calling (919) 707-7500 or toll-free (877) 308-9092.

IFTA Fees

North Carolina does not charge a license or decal fee for fuel tax registration.

IFTA Credentials

If you are an IFTA licensee, you will be assigned one IFTA license and a set of decals. You need to possess a photocopy of the license in the cab of each qualified motor vehicle. You can retain the original license in a safe place. The IFTA license is valid for the calendar year January 1 through December 31. Place the decals on the exterior portion of both sides of the cab. You can request extra decals for fleet additions or replacements.

IFTA Rates For 4th Quarter 2018

State / Province Gasoline Special Diesel Gasohol Propane LNG CNG Ethanol Methanol E-85 M-85 A55 Biodiesel Electricity Hydrogen
NORTH CAROLINA (NC) #25 U.S.
Can.
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207
0.3510
0.1207

IFTA Quarterly Tax Reporting Requirements

As a licensee, you must file IFTA quarterly tax return electronically with the North Carolina Department of Revenue. This return is to calculate tax or refund due for each member jurisdiction. If there is a net tax due, you have to submit a check to the State of North Carolina; if there is a net refund due, you will receive a refund check from the State of North Carolina.

The following are the requirements to file the IFTA quarterly tax return:

  • Total miles, both taxable and nontaxable, traveled by your qualified motor vehicles in all jurisdictions, IFTA, and non-IFTA;
  • Total gallons of fuel consumed, both taxable and nontaxable, by your qualified motor vehicles in all jurisdictions, IFTA, and non-IFTA;
  • In each member jurisdiction, total miles and taxable miles traveled by your qualified vehicle
  • In each member jurisdiction, taxable gallons consumed by your qualified vehicle
  • In each member jurisdiction, tax-paid gallons purchased for your qualified vehicle

ExpressIFTA is the online IFTA fuel tax reporting software. We offer the pre-auditing feature that automatically recognizes basic errors in MPG calculations and distance traveled in adjacent states and more. We also render 24/7 US-based IFTA customer support team for an error identification system, IFTA record-keeping and more.

IFTA Quarterly Report Due Dates

The due date for the quarterly tax reporting is the last day of the month immediately following the end of the quarter for which the return is being filed:

Reporting Quarter Reporting Period Due Date
1st January - March April 30
2nd April - June July 31
3rd July - September October 31
4th October - December January 31

If the due date of the month is a Saturday, Sunday, or a legal holiday, the next business day is considered to the final filing due date.

IFTA Penalties and Interest

When you fail to remit any tax due or file a return, or, file a late tax return, you would be subject to penalty and interest. The penalty for your failure to pay tax when due is the greater of $50 or 10% of the net tax due to all member jurisdictions. The penalty for your failure to file the return when due is $50. The interest you need to pay is computed on the tax due at the applicable IFTA rate. You can find the applicable interest rate online at
http://www.dornc.com/taxes/motor/ifta_interestrates.html.

IFTA Quarterly Fuel Tax Report for No Operations

A quarterly tax return must be filed even if you do not operate the qualified motor vehicle or purchase taxable fuel in any IFTA member jurisdiction in a reporting quarter.

To learn more

https://www.ncdor.gov/taxes-forms/motor-carrier-tax

https://www.ncdor.gov/news/reports-and-statistics/ifta-publications