IFTA Frequently Asked Questions

1. What are the fees for a license and decals?

Colorado does not charge a fee for the license or decals. Visit the Decals web page and License Information web page to learn more. 

2. Fuel tax was paid at time of purchase. Is any other tax due?

IFTA is not an additional tax to the tax paid at the pump or on bulk fuel purchases. IFTA is an inter-jurisdictional (inter-state or province) agreement to redistribute fuel taxes. The IFTA program redistributes fuel taxes paid based on where the miles were traveled and the fuel was used. Visit the IFTA web page for more information about the program. 

3. Who should have an IFTA tax account?

Any person who is based in a member jurisdiction and operates a qualified motor vehicle(s) in two or more member jurisdictions is required to obtain an IFTA license unless an election is made to satisfy motor fuels use tax obligations on a trip-by-trip basis. For more information, visit the IFTA Tax Account web page. 

4. IFTA or IRP – What is the Difference?

The license requirements for IFTA are available on this website. Information on the Internationa Registration Plan (IRP) is on the Division of Motor Vehicles (DMV) website.  

5. What if there is a lease agreement?

If you have a lease agreement which states another entity is responsible for reporting and paying IFTA fuel taxes, complete the IFTA Lease Agreement Certificate (DR 7511). The reporting entity (lessee) is responsible for signup and acquiring decals from the Department.
 
A licensed IFTA carrier (lessor) who enters into a lease agreement during the year must send a written request for closure of their IFTA account and return their license and decals to end their reporting obligation. The carrier's account will be closed at the end of the quarter in which the closure request, license and decals are received by the Department. If the lease agreement is terminated, the carrier (lessor) should return the license and decals to the reporting entity (lessee).