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The International Fuel Tax Agreement (IFTA) is an agreement between member jurisdictions to simplify the reporting of motor fuel use taxes. One tax return is filed with the base jurisdiction for fuel consumed in all member jurisdictions.
All 48 contiguous states and 10 Canadian provinces are members. A complete list of the member jurisdictions can be found on the International Fuel Tax Association Web site. Each jurisdiction assigns its own tax rates to each of the various fuel types.
Each jurisdiction may define what constitutes taxable activity and what is tax-exempt.
To obtain a Colorado-based IFTA license, complete and submit an International Fuel Tax Agreement (IFTA) Application. Mail the original form to the Colorado Department of Revenue, PO Box 17087, Denver, CO 80217-0087 and retain a photocopy of the completed form for your records.
An IFTA license can be obtained at the same time a truck is registered for the International Registration Plan (IRP). A truck must have a valid Colorado registration OR, must register with the International Registration Plan (IRP).
As the base jurisdiction, Colorado will issue one IFTA license to the qualified applicant. The IFTA license is valid for the current calendar year and expires December 31.
The applicant is required to make copies of the IFTA license so that one copy can be carried in each qualified motor vehicle. A vehicle will not be considered operating under IFTA unless there is a copy of the license in the vehicle. Failure to display a copy of the IFTA license may result in the vehicle operator being required to purchase a Trip Permit. Carriers may obtain a Trip Permit at any Colorado Port of Entry.
Carriers can deduct miles paid for on a trip permit if the trip permit was issued for fuel tax because the IFTA license was not available for the port officer to verify. There are a number of states that have a separate mileage tax. Any miles traveled under a trip permit issued for a mileage tax or miles traveled on toll roads are not deductible on the IFTA report.
To order additional IFTA decals throughout the year, call 303-205-8205. Have the Colorado Account Number (CAN) ready when calling.
You need a valid IFTA license and IFTA decal to be qualified to operate in all member jurisdictions without further licensing requirements, tax permitting, or identification.
Failure to comply with all the requirements shall be grounds for suspension or revocation of the license under the terms of the International Fuel Tax Agreement.
Colorado carriers will be notified in November if their account is not in compliance. Renewal license and decals are sent to compliant carriers in December.
IFTA licenses will not be renewed and may be closed for carriers not in compliance by December 31. Carriers who are renewed and have been sent their IFTA license and decals have a two-month grace period (January and February) before they are required to display the IFTA license and decals for the current year.
To operate in IFTA jurisdictions during the grace period, carriers must display either a valid current or prior year IFTA license, decals from the jurisdiction in which they were registered or a valid single-trip permit from the IFTA jurisdiction in which they are operating.