Quote:
Originally Posted by rlhgpt
how does IRP work? do i have to keep track of every mile I drive in every state and pay by the mile per state?
Yes, you need to keep track of all of your state miles and gallons of fuel purchased in every state you buy fuel. If you are a company driver, your company will either figure it off of a Qualcom, trip sheet or a computer in the office if you are routed. If you are an owner op leased to a company, keep your own records. I found a notebook was the easiest way to keep track, much safer than a PC after losing a hard drive or two. If need be, make up your own trip sheets to keep track of fuel and mileage. Maybe I can post one of mine, DOT liked the looks during my last audit.
If you screw up, it will cost you, as it is not worth it when it is so easy to keep track of everything.
And as far as how it works? Good question, there is a formula based on gallons of fuel purchased and miles traveled in every state. If you do not purchase fuel in a state you travel through, you pay the full tax rate. If you buy fuel in a state you pay no tax or a portion of a tax. Then we have Indiana, Kentucky, New Mexico and Oregon. They all have a different structure, where you ultimately always wind up paying something.