Transport Safety Editor — J. J. Keller & Associates, Inc.
Do your vehicles leave your state? Learn more about when you need to register for IFTA or IRP.
Written by:
Corrina Peterson
Transport Safety Editor — J. J. Keller & Associates, Inc.
Carriers often have vehicles that qualify for registration under both the International Fuel Tax Agreement (IFTA) and the International Registration Plan (IRP). But, if the trucks don’t leave the state, they are not required to register under the programs.
What happens, though, if a vehicle does need to leave the state? Must it be registered under IFTA and IRP? Not necessarily. Trip permits may do the trick — but other factors should be considered.
Identifying which vehicles in your fleet qualify for IFTA and IRP registration is the first step to compliance. Qualified vehicles under IFTA and IRP are those that cross state or provincial borders and meet any one of these criteria:
When deciding between trip permitting and permanent IFTA and IRP credentials, consider how often your qualified vehicles will operate outside of your state. Generally, five or fewer interstate trips per year are best covered by temporary permits. If you exceed that number of trips out of state, permanent IFTA and IRP credentials are probably the best options.
Trip permits are authorized and managed by each individual state and can be obtained through wire services. If travel is required to (or through) a state and a vehicle does not have IFTA and IRP credentials, trip and fuel permits are required. Permits are valid for a defined period of time or for a single trip. Some states limit the number of permits that can be used in a year.
Permanent IFTA and IRP credentials allow you to freely operate in any IFTA and IRP jurisdiction, but you would be subject to annual renewals and significant recordkeeping.
A carrier almost always has the option to trip permit, but depending on your situation, permanent IFTA and IRP credentials might be a better business decision.
For help determining the permits you need, the Permit Advisor wizard in FleetMentor walks you through a few simple questions and then provides a summary of the federal and jurisdictional permits you will need to operate and transport a specific shipment. Just go to the Toolbox tab and choose Permit Advisor in the Safety column on the right side of that page to get started.
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