International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP): Allocating Commercial Fuel Tax and Registration Fee Payments Across Multiple Jurisdictions Final rept

摘要

This report provides: (1) an overview of the IFTA and IRP processes for allocating fuel tax revenues across jurisdictions; and (2) an assessment of these systems in regard to their effectiveness at allocating the tax and fee burden among commercial carriers in an efficient and accurate manner. Three aspects of the system were assessed by answering the following questions: (1) Is the system effectively fostering cooperation among the 58 jurisdictions governed by the IFTA and IRP agreements. (2) Is it effectively promoting the allocation of tax burdens and payments among the jurisdictions. and (3) Is it effectively collecting tax payments and preventing tax evasion. Survey results suggest that the answer to the first question is a qualified yes. Respondents (1) perceived IFTA, Inc. to be very effective in encouraging inter-jurisdictional trust and cooperation; (2) were very satisfied with their communications with IFTA, Inc.; but (3) were less satisfied with communications and coordination of tax reconciliation activities with other jurisdictions. In response to the second question, respondents clearly felt that IFTA, Inc. and IRP, Inc. were well run.