Proposed Enhancements

1. Proposed Enhancements • IFTA - Annual Report (P1110) • Bill Kron (MS) • IFTA - Exemption Database (P1130) • Doug Shepherd (CA) September 20, 2006

2. Proposed Enhancements • History: • Assigned in January 2006 to APC • Proposed changes drafted by APC • Next steps: • Comments/discussion today • Recommendations to IFTA Board in October • Potential 2007 Ballots by IFTA Board & APC

3. Exemption Database • P1130 (Reporting Other Information) • Every member jurisdiction shall advise the repository of all changes regarding: • Tax-exempt miles/kilometres; • Non-taxable fuels; • Tax-exempt vehicles; or • Any other changes affecting the administration of the Agreement.” Note - All exemptions are based on reducing the total distance to establish total taxable distance

4. How To Find

5. How To Edit - Fuel

6. How To Edit - Distance

7. How To Edit - Vehicle

8. How To Edit - Other

9. Finished Product - CA

10. Exemption Database • Purpose: • To assist licensees complete tax returns and auditors verify non-taxable distances • Current Concerns: • Many jurisdictions are not updating the database • 29 jurisdictions have not entered 2006 data • Only 7,600 web hits in 2006 (2.75% of licencee population) • Information is difficult to find/understand • Most do not relate to QMVs (e.g., antique trucks, non-highway vehicles, recreational vehicles, dyed fuel, fuel for home heating) • Don’t need four categories to reduce taxable distances

11. Two Examples - BC

12. Two Examples – NY (1 of 2)

13. Two Examples – NY (2 of 2)

14. Two Examples - NY • New York exempted vehicles include:    • Road rollers, tractor cranes, truck cranes, power shovels, snow plows, road sweepers, sand spreaders, well drillers, road-building machines • Vehicles operating on fixed rails or tracks • Vehicles operating under dealer or transporter plates • Vehicles engaged exclusively in the transportation of U.S. mail under contract

15. Two Examples - NY  • New York exempted vehicles include: (cont.)   • Vehicles operated by any government agency (e.g., Federal, state, county, town, or municipality) • Vehicles owned and operated by farmers • Vehicles used exclusively to transport household goods • Vehicles owned and operated by any fire company or department • Buses when engaged in local transit service

16. Proposed Change • Reorganize into 3 parts:  Part 1 - IFTA Return Adjustments Only(Mandatory) Part 2 - Other Refunds/Exemptions Available to Carriers (Discretionary) Part 3 - Notes(Discretionary)

17. Proposed Change – Part 1 • IFTA Return Adjustments Only(Mandatory) • Only exemptions which reduce a carrier’s total taxable distance on their quarterly return: • Exempt roads/toll roads • Trip permits • Vehicles meeting QMV definition but exempted by a jurisdiction (e.g., government vehicles, buses, farm vehicles) • Exclude: • Unregistered/non-highway vehicles and equipment (e.g., locomotives, road building machines) • Vehicles which don’t meet QMV definition (e.g., fire trucks, snowplows, mobile cranes, recreational vehicles, and others less than 26,000 lbs/11,797 kg)

18. Proposed Change – Part 2 • Other Refunds/Exemptions Available Carriers(Discretionary) • Refund opportunities for IFTA and non-IFTA carriers, which must be applied for through a refund application: • Non-motive use of fuel (i.e. PTO, idle time) • Coloured fuel • Farm use • Alternative Motor Fuel

19. Proposed Change – Part 3 • Notes(Discretionary) • A placeholder for jurisdictions to provide other relevant information: • Contact information • Web addresses for application forms and/or additional refund information • Special Notices (e.g., Idaho – Native retail locations selling tax-out fuel)

20. Proposed Changes • Overall result: • More user friendly for: • IFTA carriers or their tax preparers; and • IFTA auditors • Allows IFTA carriers to quickly identify distance exemptions • Allows all carriers to identify other refund opportunities • Allows jurisdictions a spot to provide other important information.

21. Proposed Changes Questions/Comments

22. Annual Report

23. A Quick Reminder • History: • Assigned in January 2006 to APC • Proposed changes drafted by APC • Next steps: • Comments/discussion today • Recommendations to IFTA Board in October • Potential 2007 Ballots by IFTA Board & APC

25. How To Find

26. How To Edit

27. How To Edit

28. How To View

29. Finished Product - CA

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32. Finished Product - All Jurisdictions

33. Title/Purpose

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38. Annual Report Questions • Does my jurisdiction use the information that is posted by the other jurisdiction? • Does the public need to know the information in the report? • Is there any requirement for the information to be available to the public?

39. Annual Report Questions • Should the report be moved to a secure area on the website? • Is there some information your jurisdiction could (and would) use from the other jurisdictions. • What does your jurisdiction include in the number of accounts?

40. Annual Report Questions • When does your jurisdiction consider a license “cancelled”? • What is the difference between suspended and revoked? • What does your jurisdiction include in the number of accounts revoked? • Would your jurisdiction find it helpful to know if a registration fee is changed for an IFTA license?

41. Recommendations • Number of accounts – include accounts that were active during all four quarters of the year • Cancelled licenses – Include only accounts that have ceased interjurisdictional travel (closed) • Suspended/Revoked – use both terms interchangeably and provide number of accounts revoked once, twice, or three times during a year

42. Recommendations • Add two entries: • Does your jurisdiction charge a registration fee? • Amount of registration fee.

43. POP QUIZ • How many different backgrounds were used in this presentation?