[allan5oh]

Needless to say, although it was my ideas in the article, it was basically completely revamped by someone who does it as side projects.

Years of trucking has caused my brain to rot.

I also have to say that I understand IFTA doesn't work exactly the way the article explains it. However I've found this way (the magical bank account that doesn't really exist) the best way for people to understand it. Any other way simply doesn't work as well. It's a good concept, so I stuck to it.

[RostyC]

Congratulations on getting your own column Allen. I think it's a fine article and fuel tax is something I need to pay more attention to now that I'm going out more.

Here have one of these........ :clap:

[allan5oh]

But where oh where is the local grammar/sentence structure nazi's?

You guys know who I'm talking about!

[wildkat]

Allan, grammar & sentence structure is not the point of the article. You have written it so the "average guy"...read truck driver... can understand a confusing concept. I struggle with this EVERYTIME I go through BC. They're fuel tax is DOUBLE every other place I go. I CRINGE everytime I stick the fuel nozzle in my tanks! BUT, I have also come to understand that if I DON'T fuel there I will have a HORRENDOUS fuel tax bill every month!

Here's my example...

Trip to Whitehorse from Edmonton...

Alberta Fuel tax: 0.09/litre
BC Fuel Tax: .18/litre
Yukon Fuel Tax: 0.07/litre

Miles travelled in Alberta: 343
Miles travelled in BC: 650
Miles travellled in Yukon: 230

Alberta fuel price: .70/litre
BC fuel price: 1.10/ litre
Yukon fuel price: .85/litre

Guess Where I WANT to fuel?

And the real kicker...for me at least is that I have very large fuel tanks & I get pretty decent fuel mileage...around 7 mpg most of time...I can fuel in Edmonton & don't NEED fuel till I get to Watson Lake, Yukon. Believe me .... IF I could find a way to bypass BC... I would... in a HEARTBEAT! But until I can find a way for my truck to fly or they build a road from Alberta to the Yukon that goes around BC I'm saddled with it....there IS, unfortunately only ONE road where I travel!

[allan5oh]

Sent it away and got this response:

"Article was really good, no changes necessary.
Have a great day "

[golfhobo]

Originally Posted by allan5oh

But where oh where ARE the local grammar/sentence structure nazis?

You guys know who I'm talking about!

Ahem..... well..... I don't know who you refer to, but I wish I'd seen this earlier.

I DID have a few suggestions, but obviously I missed the deadline. The most important one was this: Alan. OBVIOUSLY you don't realize that there is only ONE "L" in Alan. :lol2:

Seriously, it was a GOOD essay, even in its original version, and like KAT said..... didn't really HAVE to be perfect. But, you DID want it to be, right? I wouldn't worry too much about your grammar. It is way above average.

Not being an O/O, I certainly learned something from your article and I'm sure your coworkers did. IF you still want to see how I would have "edited" it, I'll be happy to oblige. But, it's past the deadline now.

One thing I DID key on though.... you said there are only TWO ways to affect your fuel TAX bill. I hesitate to disagree, but would like to further discuss it before you publish your next article.

[allan5oh]

Sorry I was under an extremely tight deadline, and I was hoping you or the Rev would chime in. The article isn't published yet(another week or so) but I'm sure we're way beyond the point of no return. The next one will be for the 4th quarter end, I'll start it in early December or so.

As far as fuel tax is concerned, there are two ways. How much fuel you burn and where you drive(routing). Sometimes I'll take a slightly different route that goes through a cheaper fuel tax state.

[golfhobo]

The fault is mine. I've neglected this forum lately. I only wound up here today due to a link about that CSA2010 stuff.

I said I "hesitated" to disagree mostly because I haven't had time to fully research or digest the info as you presented it about IFTA and fuel tax rates. I filled out the forms as a company driver, but never had to deal with the economic realities. This is something I NEED to get a grasp on, and I appreciate learning it from you.

If I understood the original article correctly (although I was mostly reading for grammar and stuff,) your point is to pay more attention to fuel tax BASE PRICES rather than TAX RATES. We all know that taxes USUALLY are just lost income. However, I'm not clear on one point.

Is the total amount of fuel tax paid during a month/quarter divided up EQUALLY among the states based on mileage in those states? Or is it apportioned by mileage FACTORED BY PERCENTAGE RATE?

Let me try again. If you pay HIGHER tax rates in Indiana than in Illinois, but LESS basic fuel price in Illinois, YOU say one should fill up in Illinois. Now... it SOUNDED like you also said that the amount PAID to each state you pass through was the SAME based on mileage. Is that right?

If so.... why go around that state due to higher TAX rates that you say are immaterial. (You may get a refund or owe more) It seems the only reason to bypass a state would be the BASE price of the fuel.... and THEN only if the extra mileage offset it AND you couldn't have "pre-fueled" to get through it.

Seems to me.... one of the factors for your aticle MIGHT should be JIT fueling (my version of "just enough" to get out of the state.) If the ONLY real factor is BASE price..... then plan your trip for the SHORTEST distance, and fuel where the BASE price is lowest. If you run out before you cross the border..... well..... you just SHOULDN'T! Top it off BEFORE you enter the state with the higher BASE price. (instead of routing AROUND a state with a higher TAX RATE.)

I may be way off base. I'm shooting from the hip. But YOU SAID in your aticle that the actual TAX RATE doesn't matter as it will all come out in the wash. NOW you are advocating a LONGER route to avoid a TAX RATE? :hellno:

[allan5oh]

Golf you're already getting into a bit of advanced fueling concepts. You simply want to buy fuel at the cheapest base price, but do your miles in the cheapest states. The problem is exactly like you stated, usually the cheapest "base price" fuel is in the high tax rate states. You want to buy fuel there but you don't want to travel there.

But imagine buying fuel in Indiana, AND traveling in Illinois? For example:

IN fuel tax rate is 16 cents
IL fuel tax rate is 43.4 cents

We'll ignore the surcharge just to make things easier.

The fuel price at Minooka, IL is $2.919, base price $2.485
The fuel price at Gary, IN is $2.699, base price $2.539

If you get 6 mpg and fueled up in Minooka, Illinois the numbers would be:

Illinois $2.485 + $0.434 = $2.919/gallon 48.65 cpm total cost
Indiana $2.485 + $0.16 = $2.645/gallon 44.083 cpm total cost

If you fueled up in Gary, Indiana the numbers would be:

Illinois $2.539 + $0.434 = $2.973/gallon 49.55 cpm total cost
Indiana $2.539 + $0.16 = $2.699/gallon 44.983 cpm total cost

So you save 1 CPM just by fueling up in Illinois. Remember that your base price is "paid and done for" yet the tax rate changes every state line you cross. So every time you cross a state line your actual costs change. It's always base price at last fillup + fuel tax rate of current state you're in.

Is the total amount of fuel tax paid during a month/quarter divided up EQUALLY among the states based on mileage in those states? Or is it apportioned by mileage FACTORED BY PERCENTAGE RATE?

It is based on fuel used in each state, which is based on mileage and average MPG for the reporting period. Going back to Illinois/Indiana:

Say you did 500 miles in each state and averaged 5 mpg. That's all you did for the month. The reporting period comes, and you tally up your miles. You did 1000 miles, 500 in each state, and averaged 5 MPG. Therefore you burned 100 gallons in each state. You "owe" Indiana $16, and you "owe" Illinois $43.40.

If you bought all of the fuel in Illinois, you would receive $27.40 back(200 gallons X $0.434 fuel tax rate = $86.80 paid through the quarter, but you pay Illinois $43.40 and Indiana $16, $86.80 - $43.40 - $16 = $27.40).

If you bought all of the fuel in Indiana, you would owe $27.40(200 gallons X $0.16 fuel tax rate = $32 paid through the quarter, you pay Illinois $43.40 and Indiana $16, $32 - $43.40 - $16 = -$27.40)

But wait, we need to calculate how much you actually paid overall:

Illinois you bought 200 gallons, and paid $2.919 = $583.80

$583.80 plus your IFTA return of $27.40 = $556.40 "total" fuel cost

Indiana you bought 200 gallons, and paid $2.645 = $529

$529 plus you owed IFTA $27.40 = $556.40

There are two was to calculate total fuel cost:

Pump price paid throughout quarter - IFTA return(negative if owed, resulting in addition of the number) = Total fuel cost for quarter

Base price paid throughout quarter + all fuel tax paid = Total fuel cost for quarter

Both should come up with the same number.

[allan5oh]

Here's what they kept:

How does IFTA work?

Every time you purchase diesel, fuel tax is paid. This money is banked into an IFTA account that is assigned to your unit. At the end of the quarter/month, your company will determine the total amount of gallons consumed in each jurisdiction. They will then calculate the amount owed (gallons consumed X fuel tax rate) from the IFTA account. If the amount owed is greater than the amount you have paid throughout the quarter, additional IFTA tax will be charged by the carrier; if the amount owed is less, a refund will be issued. It does not matter if you are billed or refunded because the total fuel tax paid will be the same regardless of where the fuel is purchased. Review your monthly fuel tax report to better understand the figures and calculations.

How does IFTA affect fuel purchasing?

The cost of fuel at the pump is broken into two separate units: the base price and the fuel tax. The base price is the cost of the fuel without tax. Ideally, you want to pay the least for the base price, because the fuel tax does not matter in the long run. When comparing prices, you should deduct the fuel tax from the pump price(i.e.; pump price - state fuel tax rate = base price). Payne Transportation supplies maps with fuel tax rates (updated quarterly).

A common mistake is to buy fuel in Indiana after passing through Illinois. Fuel is far cheaper in Illinois even though the pump price suggests otherwise. Another good example is Florida and Georgia.

Cut out the first two and last paragraph. Oh well, they did include an "editor comment" that included my email address. The newsletter should be online very shortly. They put my article in a side bar.

Thanks everyone.