Fuel Tax Information.

[Papa Rick]

I have read some post about Fuel Tax (Oregon being high after everything is considered).

I was wondering if someone could tell me where I might find some information on this. I only drive in three states AL, GA, & TN, and usually buy gas in TN as it is 6 to 18 cents cheaper than the other two states.

I haul logs for a living and want to get the most for my money.

[allan5oh]

http://www.etrucker.com/apps/promiles/fuelprices.asp

For a true comparison, only look at the "ex-tax fuel price"

Tennessee is a little cheaper, but you have to compare the actual numbers at the pump, not off this website.

Write down the fuel tax rates for the states you travel in.

They all have very close fuel tax rates, so looking at the pump price actually does get you a good deal.

Now look at Florida Vs Georgia, that is a perfect example of what we're talking about. Florida is 12 cents more expensive at the pump, but actually cheaper when you take out fuel tax.

[allan5oh]

BTW, that site is best for looking at fuel tax, not for comparing the price state vs state. I find it can be quite off in some states. Nebraska is a perfect example.

[Papa Rick]

Thanks for the reply as it helped quite a bit. I have a accountant who does my IFTA, Tags, etc..., and she told me to keep up with the miles and gallons purchased in each state, and every 3 months she would figure what I would pay for IFTA. My CPA explained it to me, but I never did grasp it very well.

I just bought my Truck 1985 FLC, and haul logs for a living. What I am saying is could someone either explain it to me so that I (slow learner) can get a better understanding of this, or tell me a website to go to that could help me understand it better.

[allan5oh]

I'll explain how the whole IFTA thing works.

You buy fuel, say you pay 20 cents fuel tax on the gallon, and $2 for "base price". You do a 1,000 mile trip. 500 miles in a 20 cent state, 500 miles in a 30 cent state.

Your truck gets 5 mpg(for ease of calculations).

So for this 1000 mile trip, you're going to burn 200 gallons. 100 gallons in the 20 cent state, 100 gallons in the 30 cent state.

Now comes the end of the quarter. You haven't bought a cent in the 30 cent state, so you've "underpaid" them and "overpaid" the 20 cent state.

It breaks down like this:

Total contribution to IFTA $40 (200 gallons * 20 cents)

You owe state #1 $20 (100 gallons burned in that jurisdiction * 20 cents)
You owe state #2 $30 (100 gallons burned in that jurisdiction * 30 cents)

Now it's time to pony up $10.

You're "actual" fuel cost is $250, not the $240 you paid at the pump.



Let's do another example.

State #1, base price $2.00, fuel tax $.20
State #2, base price $1.80, fuel tax $.40

Best scenario:

You buy fuel in state #2, but drive exclusively in state #1. Your "actual" fuel cost including base and fuel tax would be $2.00 a gallon.

Worst scenario:

You buy fuel in state #1, but drive exclusively in state #2. Your actual fuel cost including base and fuel tax would be $2.40 a gallon. Big difference.


One thing many drivers fail to take into account with trip routing is where you are burning your fuel.

[allan5oh]

Feel free to ask any questions, most drivers do not understand IFTA. There's one driver with my company that I've been trying to help him out, it would save him a substantial amount of money(up to thousands a year) if he would fuel up where I tell him to.

I will tell you this though, from the information you told me on what states you travel, I think you're doing the right thing. Fueling up in the other 2 states might be a bit more expensive, but it won't make a huge difference. Other OTR drivers it could make a very large difference, especially cross border drivers(Canada has the lowest base fuel price).

[Papa Rick]

what if you overpay one state, and underpay the other, is this all done at IFTA Federal Level? For example I buy most all of my fuel in TN, none in GA, a little in AL. My miles come out
TN: 51%
GA 15%
AL 34%

Let me see if I am understanding this right, just for example:

I drive for one month 3000 miles in TN avg 5 miles to the Gallon which means I burned 600 gallons in TN.

Take the 600 gallons X Tax Rate of 0.17 comes to $102.00 that I would owe them, unless I bought 600 gallons from TN during this time frame. Is this correct?

[Rev.Vassago]

what if you overpay one state, and underpay the other, is this all done at IFTA Federal Level? For example I buy most all of my fuel in TN, none in GA, a little in AL. My miles come out
TN: 51%
GA 15%
AL 34%

Let me see if I am understanding this right, just for example:

I drive for one month 3000 miles in TN avg 5 miles to the Gallon which means I burned 600 gallons in TN.

Take the 600 gallons X Tax Rate of 0.17 comes to $102.00 that I would owe them, unless I bought 600 gallons from TN during this time frame. Is this correct?

You would owe them, but in your scenario, it would also be assumed that you "overbought" somewhere else, which would OFFSET the amount you owe TN. If the place you bought fuel had a higher fuel tax than TN, then you would owe TN nothing, and acutally get money back.

The days when you had to buy a little bit of fuel in each state are long gone, although many people still think you have to do it.

The only exceptions to the rule are those states that don't issue credits for overbuying fuel, such as Oregon, or states that don't charge fuel tax at the pump, such as Indiana.

[gcal]

OK does any body ever watch "mind of mencia" on comedy central? you know when he makes fun of retarded people and makes that "dee de dee!" sound?
well thats what I fell like right now reading this DEE DE DEE!!! SOME ONE EXPLAIN PLEASE.


Now i see Oregon referenced in your posts "states that don't issue credits for overbuying fuel, such as Oregon"

i live here in this crap hole. and i will be traveling alot to California. i think (will know for sure next month) i landed a dedicated route to near Delano ca. its only loaded coming out and mt going back, unless i find somehitng off the boards (which i will desperately try) and it pays 1.35 per mile coming out loaded. but mt i need to find something going back they will not help me there.

now my question is were do i buy fuel to save money.

there are about 300 miles to the border to California from were im at and then about 540 miles driven in California. now with my skills i would stop at the truck stop with the most drivers there and figure that is the place to fuel since they are all there. but i know i need advice in this area so some one help explain this to me again. please

[Rev.Vassago]

now with my skills i would stop at the truck stop with the most drivers there and figure that is the place to fuel since they are all there. but i know i need advice in this area so some one help explain this to me again. please

Many drivers have no idea how much their fuel is really costing them. That is why you see so many drivers fueling in Indiana, where there is no fuel tax taken at the pump.

[allan5oh]

now with my skills i would stop at the truck stop with the most drivers there and figure that is the place to fuel since they are all there. but i know i need advice in this area so some one help explain this to me again. please

Many drivers have no idea how much their fuel is really costing them. That is why you see so many drivers fueling in Indiana, where there is no fuel tax taken at the pump.

You mean Oregon right? Indiana takes 16 cents per gallon, and ex-tax is one of the cheapest places to buy fuel.

[RostyC]

Another question on fuel tax.......what's in place to keep everyone honest? not that anyone would think of cheating, noooo

[allan5oh]

Another question on fuel tax.......what's in place to keep everyone honest? not that anyone would think of cheating, noooo

Heavy fines and regular audits.

[Dispatch_This]

OK does any body ever watch "mind of mencia" on comedy central? you know when he makes fun of retarded people and makes that "dee de dee!" sound?
well thats what I fell like right now reading this DEE DE DEE!!! SOME ONE EXPLAIN PLEASE.


Now i see Oregon referenced in your posts "states that don't issue credits for overbuying fuel, such as Oregon"

i live here in this crap hole. and i will be traveling alot to California. i think (will know for sure next month) i landed a dedicated route to near Delano ca. its only loaded coming out and mt going back, unless i find somehitng off the boards (which i will desperately try) and it pays 1.35 per mile coming out loaded. but mt i need to find something going back they will not help me there.

now my question is were do i buy fuel to save money.

there are about 300 miles to the border to California from were im at and then about 540 miles driven in California. now with my skills i would stop at the truck stop with the most drivers there and figure that is the place to fuel since they are all there. but i know i need advice in this area so some one help explain this to me again. please

OK - Let me give this a try! Right now, I think your cost would be about the same, maybe a little cheaper in CA. Here's what happens - When you by fuel in Ca., 33/cents a gallon goes towards your IFTA "escrow" account. When you buy fuel in Oregon NOTHING is contributed because they don't have a state sales tax. If your truck gets, say, 5 MPG, then Ca. is going to want 33 divided by 5 or 6.6 cents/mi. for every mile you travel in their state. So for every 540 mile leg, you will owe them $35.65 which comes from your IFTA account. BUT - you also travel 300 miles in OR. with fuel you bought in CA.! Therefore, you are OWED a credit of 6.6 cents times 300 or $19.80 per leg. You stated that you live in OR., so they get THEIR mileage tax when you renew your IRP. If you buy all of your fuel in OR., then there will be nothing in your IFTA account and you will owe CA. bigtime. This is where a lot of O/O's make a mistake when buying fuel in the northwest. They see the pump price being 15-20 cents cheaper in Oregon, but they end up having to make up the difference at the end of the quarter when the IFTA man comes calling.

[gcal]

now i understand. thanks