Trucking companies have a number of obligations they have to meet–we don’t need to tell you that. While all of them are important for a variety of reasons, staying compliant with all the national motor carrier regulations is one of the most important.
As a member of the International Fuel Tax Agreement (IFTA), Texas has some specific requirements for the drivers that claim it as their base jurisdiction. Fortunately, IFTA compliance is easier to tackle than you may think–and TruckLogics is here to help!
Read through this blog to understand the importance of IFTA compliance for a trucking business, what the specific requirements for filing in Texas are, and what important dates you need to remember!
IFTA Compliance – Why Does it Matter?
The first and most pressing reason for meeting IFTA compliance is so that you avoid any potential penalties.
Failing to complete your IFTA report or fuel tax payment on time can lead to hefty penalties for your business. These penalties amount to either $50 (or) 10% of the taxes due, whichever is greater.
Beyond penalties, however, there’s also the risk of having your IFTA license suspended if your business is not compliant with IFTA..
No need to worry, though! With the information required and TruckLogics on your side, filing your IFTA report is easy.
Who Needs to Complete Texas IFTA Registration?
Any business or entity that is based in Texas and operates Qualified Motor Vehicle(s) in one or more IFTA member jurisdictions is required to obtain a Texas IFTA license in order to meet their fuel tax obligations with other jurisdictions.
Vehicles are considered QMVs if they meet the following criteria:
Has three or more axles, regardless of weight
Has two axles and a gross vehicle weight or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms
Is used in combination and the registered gross vehicle weight exceeds 26,000 pounds.
Is not a recreational vehicle
These entities should list Texas as their base jurisdiction to obtain a Texas IFTA license.
The entity must have a registered place of business in Texas and should maintain records for their QMVs in Texas.
How Do I Apply for an IFTA License in Texas?
After verifying your vehicle meets the above requirements, you’ll need to apply for an IFTA license with your base jurisdiction next.
When applying for an IFTA license in Texas, the following is some basic information that you must have available to complete your registration:
The registered name and address of your business.
Your Federal Employer Identification Number (FEIN).
Your USDOT number.
Texas allows you to file your IFTA application online or on paper!
Online Application – You can create an account on the Comptroller’s Webfile system and apply for your Texas IFTA license online.
Paper Application – Print Form AP-178 Texas Application for International Fuel Tax Agreement (IFTA) License, complete it, and mail it to the Texas Comptroller of Public Accounts.
Once approved, the IFTA license and decals (2 per vehicle) will be mailed to your address. There is no fee for the Texas IFTA license and decals.
Important things to remember:
Your IFTA decals should be kept with the vehicle at all times in the event of an inspection.
If you have obtained an IFTA license for your QMVs from the state of Texas, you must file your IFTA report every quarter.
The state of Texas will check your eligibility for an automatic renewal of your IFTA license every year. If you are eligible, you will be provided with new IFTA credentials (license and decals) at no extra cost.
When are the Texas IFTA Deadlines?
Here are the deadlines for filing quarterly Texas IFTA returns:
Texas Reporting Periods
Texas IFTA Filing Deadlines
January – March (1st Quarter)
April – June (2nd Quarter)
July – September (3rd Quarter)
October – December (4th Quarter)
* If the due date falls on a Saturday, Sunday, or legal holiday, the next business day is considered the due date.
TruckLogics, the #1 Trucking Management Software, offers a hassle-free solution for you to generate your IFTA report accurately.
You’ll never have to worry about changing IFTA tax rates either, as our system is updated automatically with accurate tax rates for each quarter. You can import your trucks and fuel data easily and generate reports quickly!