IFTA 101. IFTA Managers and Law Enforcement Workshop. Presented by Kate Kennedy (Indiana)

Transcription

1 IFTA 101 IFTA Managers and Law Enforcement Workshop Presented by Kate Kennedy (Indiana)

2 In the beginning we created roads and the roads were happy but they were lonely.

3 So we created trucks to run on the roads.

4 But the trucks started breaking down the roads so we collected taxes to maintain and repair the roads.

5 To make sure every jurisdiction (state or province) got their fair share, IFTA was created.

6 THE DARK DAYS

7 The Dark Days Before IFTA, carriers traveling inter-jurisdictionally had to: Get a decal from each jurisdiction File a return with each jurisdiction where they traveled Pay a fuel tax to each jurisdiction, if required Wait for reimbursement from each jurisdiction, if any Keep records for each jurisdiction for audit purposes

8 The Dark Days Before IFTA, each jurisdiction had to: Register and issue decals to each requesting carrier Receive returns from carriers located everywhere Issue reimbursements to carriers everywhere, when requested Wait for the payments from carriers everywhere

9 The Dark Days The jurisdiction had no control over: What taxes they received Fuel export and import Audits in different jurisdictions

10 A NEW WORLD.. So, What is IFTA? INTERNATIONAL FUEL TAX AGREEMENT It is a tax collection agreement by the 48 contiguous American states and 10 Canadian provinces. It is known as the Agreement.

11 A NEW WORLD.. It is the purpose of the Agreement to promote and encourage the fullest and most efficient possible use of the highway system by making uniform the administration of motor fuels use taxation laws with respect to motor vehicles operated in multiple member jurisdictions. (R130)

12 So, What is IFTA?.100 To effect this purpose, the Agreement implements three core provisions:.005 The base jurisdiction concept.010 Retention of each jurisdiction s sovereign authority.015 A uniform definition

13 So, What is IFTA?.200 To enable participation in this Agreement and to supplement the core provisions, the relationship among the member jurisdictions is further expressed in:.005 Reciprocal statutes and..

14 So, What is IFTA? *R140 COOPERATIVE ADMINISTRATION to enable participating jurisdictions to act cooperatively and provide mutual assistance in the administration and collection of motor fuels use taxes.

15 So, What is IFTA? IFTA is governed by the following documents (R120): 1) the AGREEMENT (Article R) 2) the PROCEDURES MANUAL (Article P) 3) the AUDIT MANUAL (Article A)

16 Through IFTA, Carriers. Have one license and one set of decals for each qualified motor vehicle. File one tax return for each quarter with their base jurisdiction Make one tax payment or receive one refund one refund. Base jurisdiction audits for all

17 Through IFTA, Carriers. Renew license and decals File a quarterly (or annual) tax return and pay all taxes due Recordkeeping Requirements: - maintain detailed distance records and fuel purchases - maintain supporting documentation - make documents available for an audit

18 Through IFTA, Member Jurisdictions - Have fewer carriers to administer - Audit carriers from their own jurisdiction only - Have reduced administrative costs - Increase - Audit coverage - Enforcement - Collect motor fuel taxes

19 Through IFTA, Member Jurisdictions Abide by the Governing Documents Pay membership dues (R ) Vote on amendments (R ) Update tax rates quarterly (P1120) Participate in Program Compliance Reviews (P1200)

20 Through IFTA, Member Jurisdictions Conduct reviews on member jurisdictions (P1200) Adhere to Audit requirements (R1310 and A310) Distribute the fuel tax in a timely manner (P1040) Maintain fuel tax records for licensees (P900) Complete an Annual Report

21 Through IFTA, Member Jurisdictions Update the communication lists and the exemption database Participate on committees and attend IFTA meetings

22 DEFINITIONS Jurisdiction (R227) - a state of the United States and the District of Columbia - a province or territory of Canada Base Jurisdiction (R212) - where qualified motor vehicles are based for vehicle registration purposes and where operational control and records are maintained or can be made available.

23 DEFINITIONS Licensee (R236) a person who holds an un-cancelled Agreement license issued by the base jurisdiction. Qualified Motor Vehicle (R245) a motor vehicle used, designed, or maintained for transportation of persons or property and

24 DEFINITIONS Having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or Having three or more axles regardless of weight; or Is used in combination, when the weight of such combination exceeds 26,000 pounds or 11,797 kilograms gross vehicle or registered gross vehicle weight. Qualified Motor Vehicles do not include recreational vehicles.

25 So, what is IFTA, Inc.? INTERNATIONAL FUEL TAX ASSOCIATION, INC. (R1800) Through the IFTA Agreement, member jurisdictions act cooperatively to administer and collect motor fuel use taxes based on the consumption of motor fuel in qualified motor vehicles.

26 So, what is IFTA, Inc.? Is a non-profit association incorporated in Arizona. Is funded by annual membership dues (July 1- June 30) Has a Board of Trustees elected by the Membership and governed under bylaws. Established to administer the Agreement.

27 So, what is IFTA, Inc.? Oversees Agreement committees Entry into the Agreement constitutes membership in the Association.

28 What does IFTA, Inc. do? Administer the ballot process and the IFTA governing documents Gather and distribute jurisdictional quarterly tax rates Provide technical assistance to the member jurisdictions and licensees Gather and distribute jurisdictional annual reports

29 What does IFTA, Inc. do? Lead and participate in compliance reviews Maintain the IFTA, Inc. website Plan and prepare meetings Administer the Clearinghouse and Funds Netting

30 IFTA, INC. STANDING COMMITTEES Agreement Procedures Committee responsible for the review and maintenance of the IFTA Procedures Manual and Articles of Agreement. Industry Advisory Committee advises and assists both the Agreement Procedures Committee and the Audit Committee.

31 IFTA, INC. STANDING COMMITTEES Program Compliance Review Committee ensures the Agreement is administered adequately and consistently from jurisdiction to jurisdiction. Dispute Resolution Committee hears disputes filed pursuant to Section R1555. Members of the Committee will be selected pursuant to the Committee Charter and will perform the functions as outlined in the Dispute Resolution Process.

32 IFTA, INC. STANDING COMMITTEES Law Enforcement Committee advises the IFTA Membership concerning enforcement matters through reports to the IFTA, Inc. Board of Trustees. Committee members will be representatives of law enforcement agencies of member jurisdictions having the responsibility to enforce laws affecting motor carriers, including IFTA. Issues will be assigned to the Law Enforcement Committee by the Board.

33 IFTA, INC. STANDING COMMITTEES Clearinghouse Advisory Committee advises the Board and the Executive Director of IFTA, Inc. of business rules for the operation of the Clearinghouse, ensuring the Clearinghouse operates within the IFTA requirements, suggesting enhancements to the Clearinghouse, proposing ballots and serving as a technical resource for membership.

34 IFTA, INC. STANDING COMMITTEES Information Technology Advisory Committee advises the Board and the Executive Director of IFTA, Inc. of proposed IT solutions that will improve the administration of the IFTA. Audit Committee responsible for the review and maintenance of the IFTA Audit Manual.

35 IFTA, INC. SPECIAL COMMITTEES Attorneys' Section Steering Committee provides training for IFTA jurisdictions to become familiar with their responsibilities in administering the IFTA program, facilitate cooperation between the member jurisdictions and review ballot proposals on behalf of the member jurisdictions.

36 IFTA, INC. SPECIAL COMMITTEES Dual Fuel Working Group explores the use and reporting of dual fuel vehicles in IFTA jurisdictions. IFTA Compliance Audit Working Group tasked with studying the current audit requirements and updating the processes and language in the governing documents.

37 IFTA, INC. SPECIAL COMMITTEES Electronic Credentials Working Group identifies, researches, analyzes and documents the issues surrounding the administration, issuance, and enforcement of an electronic credential that could ultimately replace both the IFTA license and decal.

38 IFTA, INC. STAFF Lonette L. Turner CEO/CFO Debora K. Meise Senior Director Amanda Koeller Program Administrator Jason DeGraf Information Services Director Tom King Webmaster Tammy Trinker Office and Events Administrator

39 IFTA, INC. STAFF Richard O. Beckner Program Compliance Administrator Patricia Platt Program Compliance Administrator IFTA, Inc. 912 W. Chandler Blvd. #B-7 Chandler, AZ Telephone: (480) 839-IFTA (4382) Fax: (480) Website:

40 IFTA Clearinghouse What the heck is it?? A database where jurisdictions upload data that can be viewed and retrieved by participating member jurisdictions (R2100).

41 IFTA Clearinghouse What kind of information is stored in the Clearinghouse? - Demographic Data - Transmittal Data (IFTA, Inc. advises each jurisdiction of the amount due to or from other jurisdictions for the purpose of funds netting). - Inter-jurisdictional Audit reports - Decal numbers

42 What is Funds Netting? Funds Netting means the sum of each Participating Member s monthly transmittal total due amount to and from every other Participating Member resulting in the net amount owed or to be received for each Participating Member.

43 What is Funds Netting? Basic Steps in Funds Netting: 1. Jurisdictions upload their data to the Clearinghouse. 2. IFTA, Inc. produces funds netting reports (summary netting and final settlement reports) and sends to jurisdictions. 3. Jurisdictions send payment to Clearinghouse account.

44 What is Funds Netting? Basic Steps in Funds Netting (Cont d): 4. IFTA, Inc. distributes funds to the jurisdictions designated to receive funds in the Final Settlement Report.

45 How is IFTA enforced? Between the jurisdictions: - upload to Clearinghouse revoked and reinstated licenses - upload to Clearinghouse new and closed accounts - audit an average of 3% of renewed licenses annually - Program Compliance Review - Dispute Resolution

46 On the road: How is IFTA enforced? Law Enforcement Officers (LEOs) - look for decals - verify carrier has a copy of license * if none of the above, LEOs ask for the trip permit - verify status of license - verify fuel ** may issue citations, impose fines or impound for non-compliance

47 IFTA AMENDMENT PROCESS Proposals for amendment of the Agreement, Procedures Manual, or Audit Manual may be made by: (R1600)

48 IFTA AMENDMENT PROCESS * IFTA Committees: Agreement Procedures Audit Clearinghouse Advisory Law Enforcement or Program Compliance * Board of Trustees * Any Member Jurisdiction

49 OVERVIEW OF BALLOT PROPOSALS 1) Submit Proposal for a Full Track or Short Track Cycle 2) Open meeting discussion by the jurisdictional membership 3) Discussion by commissioners 4) Revision of amendments based on comments 5) Amendments accepted or withdrawn

50 How Full Track Ballot Proposals Work Full Track proposals that are not voted on at the open meeting or do not receive the three fourths affirmative vote may still proceed as follows (R1630): 1) Within 45 days of the open meeting, the sponsoring jurisdiction or committee must submit its proposal to the repository for circulation as a preliminary ballot proposal (.100). 2) The repository will circulate the preliminary ballot proposal to the member jurisdictions and the standing committees of the Association for a 45- day comment period (.200).

51 How Full Track Ballot Proposals Work 3) At the end of the 45-day comment period, the preliminary ballot proposal is submitted to the repository as a final ballot proposal and circulated, together with all comments received, to the member jurisdictions. Jurisdictions have 60 days in which to vote on final ballot proposals submitted under this section (.300).

52 How Short Track Ballot Proposals Work Proposals that receive the required three-fourths vote at the open meeting of the commissioners may proceed as follows (R1625): 1) Within 30 days of the open meeting, the sponsoring jurisdiction or committee must submit its proposal to the repository for circulation as a preliminary ballot proposal (.100).

53 How Short Track Ballot Proposals Work 2) The repository will circulate the preliminary ballot proposal to the member jurisdictions and the standing committees of the Association for a 30-day comment period (.200 ). 3) At the end of the 30-day comment period, the preliminary ballot proposal is submitted to the repository as a final ballot proposal and circulated, together with all comments received, to the member jurisdictions. Jurisdictions have 30 days in which to vote on final ballot proposals submitted under this section (.300).

54 QUESTIONS?

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