International Fuel Tax Agreement (IFTA)

To redistribute the fuel taxes paid for carriers in more than one jurisdiction among 48 American States and 10 Canadian Provisions, the International Fuel Tax Agreement (IFTA) was adopted.

You should register for IFTA with New Jersey if your commercial vehicle is a qualified motor vehicle which is used, designed, or maintained to transport people or property and that:

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

Recreational vehicles are not considered qualified vehicles.

IFTA License

New Jersey IFTA applications must be filled completely by typing or printing in ink. You can submit the completed application along with proof of the principal place of business to:

The New Jersey Motor Vehicle Commission,
Motor Carrier Services, IFTA Section,
PO 133, 120 S.Stockton Street,
NJ 08666-0133.

Contact New Jersey Motor Vehicle Commission for any issues regarding IFTA license.

IFTA Decals

The state of New Jersey charges $10 for each set of IFTA decals. Decals will be issued annually. Two decals are required for each qualified motor vehicle operated by the IFTA licensee. One decal is to be placed on the exterior of the passenger's side of the power unit. The second decal is to be placed on the exterior portion of the driver's side of the power unit.

IFTA License Renewals

The IFTA license is valid for the calendar year from January 1st to December 31st. You need to renew the license annually. If the qualified motor vehicle is being operated without an IFTA license, the vehicle operator may be subject to the purchase of a trip permit and a fine.

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
NEW JERSEY (NJ) U.S.
Can.
0.4140
0.1424
0.4850
0.1668
0.4140
0.1424
0.3225
0.1109
0.4140
0.1424
0.4140
0.1424
0.4140
0.1424
0.4140
0.1424
0.4140
0.1424
0.4850
0.1668

IFTA Quarterly Tax Reporting Requirements

All licensees must file IFTA quarterly returns with the New Jersey Motor Carriers Services, IFTA Section. This report is to calculate the tax due or refund due for each member jurisdiction. If there is a net tax due, the licensee has to submit a check to the State of New Jersey; if there is a refund due, the licensee will receive a refund check from the State of New Jersey.

The following information will be required to file the IFTA quarterly tax report.

  • Total miles i.e., taxable and nontaxable miles traveled by the IFTA licensee qualified motor vehicle(s) in all jurisdictions, IFTA, and non-IFTA, including trip permit miles;
  • Total gallons of fuel consumed, taxable and nontaxable, by the IFTA licensee qualified motor vehicle(s) in all jurisdictions, IFTA, and non-IFTA;
  • Total miles and taxable miles traveled in each member jurisdiction;
  • Taxable gallons consumed in each member jurisdiction;
  • Tax-paid gallons/liters purchased in each member jurisdiction; and
  • Current tax rates for each member jurisdiction.

ExpressIFTA is the online IFTA fuel tax preparation and reporting software. We also support IFTA late returns, so that you can prepare IFTA quarterly report as per miles and gallons record by selecting quarters for which you need to report IFTA.

IFTA Quarterly Report Due Dates

You need to file IFTA reports by the last day of the month following the month with which a quarter ends. If the last day of the month is a Saturday, Sunday or Legal Holiday, you can file the report on the next business day.

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

IFTA Penalties and Interest

If you fail to file an IFTA report or fail to remit tax for a quarter or for all quarters, you will pay a penalty of $50 or 10% of the net tax due for all member jurisdictions, whichever is greater.

For periods on or after July 1, 2013, interest will be computed at an annual rate of 2% above the underpayment rate established under Section 6621(a)(2) of the International Revenue Code. Interest is computed at 1/12 this annual rate for a month or part of a month from the date of the tax due for each month, or fraction thereof until paid. If you haven't paid tax, your account will be suspended.

IFTA Quarterly Fuel Tax Report for No Operations

A quarterly tax report must be filed with New Jersey even if the licensee does not operate or purchase taxable fuel in any IFTA member jurisdiction in a particular quarter.

To learn more:

https://www.state.nj.us/mvc/business/ifta.htm
https://www.state.nj.us/mvc/pdf/commercial/IFTA_Manual.pdf