Bob Pitcher VP, State Laws American Trucking Associations 703-838-7939 bpitcher@trucking

1. Together We’ve Made It Happen – A Celebration of 30 Years of IFTA THE INDUSTRY PERSPECTIVE Bob Pitcher VP, State Laws American Trucking Associations 703-838-7939 bpitcher@trucking.org

2. First, a little history… 30 Years Ago – Fuel Use Taxes Are a Crisis for the Trucking Industry: • Non-uniform • Burdensome • Expensive to Administer and Comply With

3. Non-Uniformity: Vehicles Registration Credentials Bonds Leases Tax Reports Credits & Refunds Audit & Administration

4. Vehicles Reported • > all commercial vehicles • > 2 axles • > 7,000 lbs. empty wt. • > 10,000 lbs. empty wt. • > 18,000 lbs. GVW or 7,500 lbs. empty wt. • > 16,000 lbs. GVW • > 30 gallon fuel tank capacity & at least 16 other definitions

5. Registration Annual, biennial, or permanent One-time fees per fleet Annual fees per fleet Annual fees per vehicle Licenses for each place of business Renewable in October, December, January, March, April, or July Vehicle-specific cab cards Account nos. on vehicle

6. Credentials (DECALS!) • 1 per vehicle – or 2? • On left side, right side – or front? • Display dates? • Annual, biennial – or permanent? • Fees? YOU BETCHA! Charged by 22 states –TOTAL ANNUAL FEES PER TRUCK: $331.70

8. Bonds Required by 19 states Various amounts and limits Required for refunds in c. 10 more states Alternative security rarely allowed

9. Leases Who’s responsible for reporting? • Lessee? • Lessor? • Party buying fuel? • Vehicle operator? • Up to parties? • State permission needed? • Depend on term of lease? Copy required in vehicle?

10. Tax Reports • Frequency: monthly, quarterly, annually • Due date: 20th, 25th, 30th, last of month Postmark honored? • Format • Computation of tax Vehicles covered? Formula? State MPGs? Individual vehicle MPGs? • Supporting documentation required • Payment in certified funds

11. Credits & Refunds Do credits carry over? How long? Refunds available? Minimum amount? Audit first? Documentation? Other restrictions?

12. Audit & Admin. • Record requirements • Official fuel receipts • Original documents • Frequent changes in requirements • Rules inaccessible to taxpayers • Multiple audits under different rules • LOTS of Gotchas

13. Fuel Use Taxes in 1983 • Non-uniform ? Definitely • Burdensome ? For carriers of all sizes • Expensive ? US DOT: $1 billion a year in administrative costs for motor carriers

14. IFTA • First implemented 1983 3 members • Redrafted per NGA 1986 4 members • Required by ISTEA 1991 14 members • ISTEA deadline 1996 • IFTA Recodified 1995-98 • Today 58 members

15. Together We’ve Made It Happen – A Celebration of 30 Years of IFTA THE JURISDICTION AND IFTA, INC. PERSPECTIVES Lonette Turner CEO/CFO International Fuel Tax Association, Inc. 480.839.4382 lturner@iftach.org

16. Jurisdiction IFTA Implementation 3 5 24 4 22 58

17. NUMBER OF LICENSEES 2003 and 2013 based on Annual Reports Filed. Renewals would be approximately the same.

18. NUMBER OF DECALS Assuming 10 QMVs per carrier and 2 decals per QMV

19. NUMBER OF TAX RETURNS PROCESSED Assuming 4 quarterly returns filed.

20. Jurisdictions – Fully Participating In Clearinghouse 53 5 4 3 11 58 35

21. What Did The Clearinghouse Mean for the Participating Members?

22. www.iftach.org

33. Summary of Benefits (Some of Them) • Fewer licenses and decals to issue • Fewer tax returns to process • More audits completed (other jurisdictions auditing on your behalf) • Decrease in costs to process (for both personnel and other administrative costs) • Open communication with other jurisdictions • Program is reviewed on a regular basis

34. Thank You! Thank you Very Much!