Taxes and travel permits in the USA

Dispatcher Training

Taxes and travel permits in the USA

Hi everybody. The topic of today’s lessons is IFTA. In today’s lesson, I will tell you about taxes and travel permits. IFTA is an agreement between states and Canadian provinces that simplifies the payment of taxes by carriers and allows you to send everything in one report. Every registered company that has a DOT number, MC number must pay tax. The fuel tax is different for each state. Accordingly, such a tax must be paid every quarter, that is four times a year. Every quarter, each company must submit the report to the State Department in which it must indicate how many gallons in which state are spent. Each state has its own tax scale, but there’s a general database in which you collect all the receipts and accordingly, you can calculate and pay taxes on approximately spent gallons in each state for the number of miles you spent.

Example, if you only traveled with Miami to Savannah, Georgia this way you provide a tax pay only in two states, Georgia and Florida. You spent 1000 gallons in one trip. Accordingly in this trip in Georgia, you refueled for 300 gallons and in Florida refueled for 700 gallons. You should display this in the IFT in your report. Therefore, you must collect all checks. And with these checks, you take information. You get all the information, how much, where, in which state you will refuel and should also indicate the number of miles that you drove.

Therefore, it is necessary to collect checks. There is also a simplification of the solution. It is in order a fuel card from one of the companies. You will be able to receive as it were a report on this fuel card, where and how much you refueled which will simplify the further calculation of the IFTA. Accordingly, you will receive all the information on the payment card, how much and where you will refuel and it will be easier for you to enter all this information into the report. Thus, you can get the report as if online at once from the card manufacturer from the company you subscribe to and you will have all the data and accordingly you can confirm them at any time during the check.

Thus, reporting on fuel taxes will be very easy. If there is a lack of information on the used gallons and the payment of tax, you may be fine. Accordingly, you must be careful and try to do everything correctly, save checks or have confirmation on the data that you enter in the report. Never discard checks if you use checks or keep backup copy of the fuel card usage report. This will make your life easier if you’ve come to check. Testing is usually conducted no more than once every three years. But of course, there are exceptions to this rule and it is better to have everything with you and always be ready.

Now, we will discuss permission to travel in each state. This tax is different in each state. Travel tax is a permit for travel or transportation of goods for a specific state. There are only five states in which they make permission to travel. The first is New York, second is Kentucky. The third is New Mexico, the fourth is Oregon and the Florida is the fifth. We will now review information about getting permission to travel in each of these states. Let’s discuss the first state, New York. In this state, you can get permission to travel by making an online registration or the phone which is very simple. To track your permission, you will need to submit documents such as number, its view number, its model and the weight of an empty truck.

Then you pay the required amount. For New York, it’s usually $1, $2 although prices usually change. Accordingly, after paying for the permission, you will receive stickers such as stickers which you should stick on the truck. Without these stickers, all the inspector stops you, the check is waiting for you. Because of this, you should not neglect the payment of taxes. It is relatively very small and you always get permission to travel if you drive in the state. If you don’t go on the states I listed above, then of course you don’t have to pay any additional taxes and no permits.

The next state is Kentucky. In this state, you will need to call the organization that deals with issuing permits for travel and also indicate the truck number, phone number and model. After sending payment, you will be sent a specific code that consists of letters and numbers. For example, KY1234, etc. And this sticker should always be on your truck. The number is assigned to one truck. Keep in mind, this is not payment for all trucks, only for one. If you want to add two or more, then, you need to do the same operation again and again for each truck. The cost of permission to travel is about $40 per year. That is, if you travel frequently, then you need to buy an annual fare.

Now, let’s discuss New Mexico. In this state, you have the choice between annual or one time travel. Accordingly, the costs there are approximately the same. You can choose which of the permits to buy, one time or annual. If you often drive, it is more convenient of course to immediately buy an annual fee, and not to bother every time for permission. But if this were a single trip, and you don’t often go there, if you don’t want to go there, then, but you’ve done so, you can get by with one off because for Kentucky, annual will be $64 per truck.

So, as you can calculate yourself and the cost of one time, it’s very cheap. And Mexico is located between East and West. So, for yourself, you have to make a decision. If you drive a car there, then open it for a year. The price depends on the weight of the truck, approximately $64.

For the state of Oregon, the state has its own tax reporting system. Permission to travel in the state can be obtained at the entrance of the staff [0:05:59 unclear] at the weight station or call and order permit online. At the moment, when the truck arrives in the state, you can always call and easily issue a permit. Accordingly, as the previous versions, you need to provide data on the truck numbers, cable numbers, truck models, etc. And after you will keep the permission. But keep in mind, the permission is issued for travel on the specific route. If the truck is going to return the other way, you will need to specify for getting your permit.

Now, let’s talk about Florida. In the state of Florida, you need permission to travel only if a driver drives temporary numbers. If you no longer have temporary numbers, then you do not need any additional permits. You can get the permit by calling and ordering online. You can get a permit by calling. The terms of validity of such a permit is 10 days. Well, because it’s also a cheap one. I will not name the sum now because it always changes but this is not a problem. I hope in this lesson, I briefly told you about IFTA, about taxes, about decisions, and of course the information was valuable for you. Thanks for your attention.

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