It's a Team's Life

Yes you can buy fuel in all states

By Linda Caffee
Posted Feb 10th 2015 11:25AM

Fuel buying myths and misunderstandings:

 

·       Don’t buy fuel in Indiana

·       Don’t buy fuel in Virginia

·       Don’t buy fuel in Oregon

·       Don’t buy fuel in Kentucky

·       Don’t buy fuel in New Mexico

 

We have learned that we must pay a tax for every mile driven in each State.  The tax is paid either at the pump or to IFTA, by each Commercial Motor Carrier, depending on the reported miles traveled in each State during each quarter of the year.  When the tax is paid at the pump, each carrier is given credit, by IFTA for the State tax paid.  When no fuel is purchased, but miles are driven in any State, each carrier must pay the State tax for those miles.  Since taxes differ, State to State, IFTA will credit or debit each carriers account and distribute the carriers’ monies to each traveled in State.  IFTA will then either issue a bill for underpayment or a refund for overpayment to each carrier each quarter.

 

The best advice we can give a money conscious driver before buying fuel is to look at the pump price (P), subtract any fuel card or other discount (D) you may receive, then subtract the State tax (T) to determine the cost (C) of fuel at the fuel stops you are considering.

 

Remember, P – D – T = C

 

So, you see, the State fuel tax is a “pay now” or “pay later” system and if Indiana or any of the above mentioned States has the least expensive bottom line cost (C), buy there and you’ll be money ahead.

 

For a list of each states fuel tax look at the special diesel column in this chart and use the top line for U.S.

 

IFTA Tax Matrix



Bob & Linda Caffee

TeamCaffee


Saint Louis MO

Expediters since January 2005

[email protected]

 

Expediting isn't just trucking, it's a lifestyle; 


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