IFTA fuel tax

 A brief history is provided below. The following is a quote from the IFTA Best Practices Page.

“Before the IFTA, each state had its own licensing and reporting system for fuel usage taxes. Carriers have to navigate different systems for their licensing needs due to the lack of a coordinated system. A license and fuel tax filings were necessary for each jurisdiction where a carrier traveled. The carrier was required by many.

To collect and distribute fuel taxes, a tax collection mechanism was devised in 1983 that was loosely based on the International Registration Plan. Because each jurisdiction would be in charge of licensing, renewals, tax reporting and auditing its registered licensees, each jurisdiction would be responsible for licensing, renewals, tax reporting, and auditing its registered licensees. The maintenance of a single license, decal, and consolidated database by a single jurisdiction benefited jurisdictions and licensees. The first jurisdictions to sign on were Arizona, Iowa, and Washington. Over the next three years, a group of people made changes to the agreement, which the membership adopted as IFTA. The bottom 48 states and ten Canadian provinces had joined by the end of 1996.”