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The International Fuel Tax Agreement (IFTA) is a compact between the 48 contiguous U.S. states and Canadian provinces to simplify the reporting of fuel taxes for commercial vehicles that operate in multiple jurisdictions. IFTA was established to reduce the administrative burden on trucking companies by allowing them to file a single quarterly fuel tax report instead of having to file separate tax reports in each state or province they operate in.

Advantages of IFTA

Simplified Reporting: Instead of filing fuel tax reports in each state or province, carriers file one quarterly report.
Uniformity: The agreement ensures uniformity in tax rates and reporting requirements across jurisdictions.
Cost Efficiency: Saves carriers from having to deal with different regulations and administrative procedures in each state or province.

In California, IFTA is administered by the California Department of Tax and Fee Administration (CDTFA). Carriers based in California must register for IFTA and follow the state's reporting and payment procedures. California applies IFTA fuel tax rates based on the number of miles traveled in the state and fuel purchased within the state.

FTA creates a uniform system of fuel tax reporting and payment across all participating states and provinces. This consistency helps carriers avoid confusion over varying tax rates, rules, and filing procedures. Jurisdictions benefit from the same standardized system, making it easier to manage and enforce

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