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IFTA taxes and buying fuel .

My carrier pays all IFTA taxes , except IN & IL.

How do I figure out how much fuel to buy in IN & IL - so as not to over - or under pay my IFTA ?

Answer this question I have this problem too

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What you do is take the price you pay at the pump in each state.

Then subtract the fuel price from each state.

The cheapest price with the tax subtracted out is the fuel you want to buy.

Here is a real world example.

My price today in S Beloit, IL is 3.896 and my price in Gary, IN is 3.57

IL tax is .41 so subtract .411 IN fuel tax is .16 so subtract .16

So the base price is in IL 3.485 and the price in IN is 3.41

So using this scenario you would buy the fuel in IN.

Now not to confuse the issue IN has a surcharge of .11 that you pay whether you buy fuel there or not. Many people get confused by this. Don't let it confuse you the .11 is for fuel burned in the state, not fuel your purchase in the state.

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Why does the carrier pay all other IFTA except IL and IN, please explain that a little more.

There is no such thing as over paying or under paying IFTA. The amount of tax due is the same no matter where you bought your fuel.

You want to make sure you are not over paying for your fuel, thats in Jackie's answer.

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Your question is a little loaded. Ifta is derived from miles ran, so if you only run 10 miles its a lot different than 1000. So to ask which way to buy fuel its a little incomplete for us to reply.

We use http://www.findfuelstops.com this is only website I know of that shows daily fuel pricing plus has a way to search for best price WITHOUT taxes. The only problem I know about this website Indiana shows cheap a lot of the time, but it does not figure the surcharge on the back side. GL

reply to : Jackie Wormley

I think Illinois tax rate is .38 not .41

Also Indiana fuel tax has surcharge of .11 or .13 <not sure> paid on the backside not up front, for all gallons burn in state, so this make Indiana higher in your example if you fill more than you burn. Not so cut and dry. Its similar to Ky and New Mexico for backside taxes on fuel or miles ran/used. We very rarely fuel any in Indiana, If we do its very little 50 gals a pop.

reply to : Matt Jungbluth

""""Also There is no such thing as over paying or under paying IFTA. The amount of tax due is the same no matter where you bought your fuel."""""""

This is not true, you can overpay or underpay.

example --- buy all your fuel in OK < .13 tax rate> run a route say Tulsa to St Louis to Tulsa. 210 miles in Ok, 570 in Mo. More miles ran in MO @ .17 tax rate you are short to Mo. So you would owe $$. Now granted you need to figure in fuel prices to see if you are saving the .04 difference @ the pump, or on the front side. Now buy all your fuel in MO .17 tax vs .13 you get a credit on ifta from MO but you owe OK. Now the credit vs owed is more, so you receive a full credit. AGAIN Now granted you need to figure in fuel prices to see if you are saving or costing yourself the .04 difference @ the pump, or on the front side.

If you have the time you can figure out to get credits back we got $10 per truck <x4> 1st quarter. But a lot has to work out. GL

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IL is. 411 tax rate, it changed in Jan 2012. IN surcharge is. 11 and you pay it on what you burn it's base on your fuel mileage. It really doesn't matter if you buy fuel in IN or not you will pay the 0.11 no matter what. Fuel tax is very simple, you take your pump price and minus the tax rate and then fuel where it is cheapest. The tax doesnt change, your going to pay for it sooner or later.

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I did not explain well enough about over paying or under paying. Your example of Tulsa to St. Louis @ 6 mpg is 35 gals OK and 95 gals MO. Now you owe OK $4.55 and MO $16.15 for a total of $20.70 There is nothing you can do to change that amount. If you bought all your fuel in OK 130 gals you paid $16.90 in tax and still owe $3.80 to IFTA = $20.70. If you bought all your fuel in MO you paid $22.10 in tax get a $1.40 refund = $20.70

It does not mater where you pay the tax at, it will be the same amount after the IFTA return is filled. So if you can not change the tax, you need to take the tax out of the pump price to see what you are paying for the fuel.

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This question cannot be answered without more information varifying that the company is either keeping or refunding over payments made in IL and IN. As stated if the company is paying the taxes in all other states then the cheapest pump price (including the tax) is the way to go in all other states.

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It doesn't matter. Always buy the cheapest fuel at the index price. You know why? You still have to pay where you ran for the quarter no matter what. Who cares where you got the fuel. I would buy all my fuel in Illinois and Indiana if i could.

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Matt is correct. It does not matter if you pay the tax when you buy the fuel or later when the IFTA report is filed because the taxes will be the same either way. The only thing that changes is when you pay it. You just have to find the lease amount possible by deducting the fuel tax rate from the pump price.

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I use http:/www.findfuelstops.com the most important thing is to set SortBy drop down menu to cost less tax. It subtracts the tax from the price of gallon in all states. Look under column CPG Less Tax that's your cheapest fuel. It includes the big players not the mom & pop stops but you will have a good picture of were to purchase your cheapest fuel.

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http://www.iftach.org/taxmatrix3/choose_... the tax rate for this quarter. IL has .411 cents tax IN has .16 cents tax at pump and .11cents surcharge when your carrier files. Example: Your miles per gallon is determined by all logged miles divided by all fuel purchases. Your carrier usually does it for you. Let say 5.5 MPG average. If you drive 200 total miles in IL you would divide 200 by 5.5 MPG for 36 gallons needed for IL. IN is different it only has part of its tax at the pump .16 cents and .11 cents surcharge. Same example: You drive 200 total miles in IN you would divide 200 by 5.5 MPG for 36 gallons needed for IN. Your carrier will charge you a additional .11 cents per gallon surcharge on the 36 gallons you purchased to cover the tax. Example to save money:Today TA Gary $3.869-.16 cents tax at pump $3.709 TA North Chicago $4.039-.411 cents tax at pump $3.628. IL is .081 cents cheaper then IN. If you bought 72 gallons in IL 36 would go to cover your IL tax and you would have a credit of 36*.411 $14.80. Your IN tax is .16 at pump plus .11 surcharge total .27cents times 36 gallons $9.72 fuel tax due. Now you have a credit of $14.80 from IL a debit of $9.72 from IN and still have $5.05 credit left in IL after the debit.

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you are all wrong

the question stated the carrier pays ifta exept in, il,

so all you have to do is take the pump price ( exept in il,in,) in those two states ya thka out the ifta tax,.,.,.

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How does the carrier pay IFTA in all but those two states? You can't opt in or out of certain states like that. That's not how IFTA works. When you file your quarterly return, you state how many miles you drove in each state. Then how many gallons you bought in all states. The tax you paid on the fuel you bought is applied to each state depending on how many miles driven in that state. It is common to owe more tax to IL and IN because IL has a high tax rate and IN charges a surcharge. If you buy a lot of fuel in IN you will probably owe money to those states.

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What the last person said is correct, you want to buy the cheapest full after the tax is deducted. Think of IFTA kind of like the IRS. at the end of the year, once you do your taxes you have an amount that you then owe..period. Then you subtract what you have already paid to get a balance, you may get a refund you may have to pay. IFTA works the same way, what you owe IFTA is based on the miles you drive in each state, it has nothing to do with how much you pay for fuel or where you buy it. The balance that you owe IFTA at the end of the quarter has to do with how much you have already paid in, based on how much tax you have already paid in through the tax added on at the pump.

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I have done a little bit of study on this, but not enough to say for sure. My result is the cheapest price at the pump is the better price after fuel tax. Do your own study but what I found that was correct. Now that would be minus Indiana which that didn't include my study.

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That's not usually the case, Todd. Typically states that have a higher fuel tax have a more expensive price at the pump, but their cost after tax is less. You always want to buy your fuel in the states with the LOWEST AFTER TAX PRICE. Most of the time it is obvious right on the border of certain states.

I just looked up some fuel prices on my route from Jacksonville, FL to Richmond, VA and found an example. Most of the truck stops in NC are charging $3.859/gal retail at the pump today. The best I found in SC is $3.699/gal. However, SC only charges $.16 tax making their fuel $3.539, but NC charges $.376 tax which makes their fuel $3.483 That means Fuel in NC is cheaper!

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Even though you are paying more tax at the pump, you're saving money in the long run. I usually get about $150 back when I file my IFTA return depending on what states I run that quarter.

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where can I find a list of tax rates for each state online ?

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I know when I have looked at different states that's what I found but I understand what your saying. I'm always up to saving money! Thanks!

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I have seen some receipts that say fuel tax included in purchase price, for instance Flying J in Waco, TX says this. Not all my receipts show that, so how it seems as if we are paying fuel tax twice, for the states that hold the tax at the pump. Can anyone give some clarity to this?

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