Fuel and road use taxes
Whether traveling solely within or through the state of Indiana in a commercial vehicle all carriers must generally file and pay a fuel and road use tax. Registering with the Indiana Department of Revenue and displaying a valid annual Compliance Decal and permit cab card accomplish this. There are two methods of registration depending on whether the carrier operates intra-state or inter-state.
The International Fuel Tax Agreement (IFTA) is an agreement between state taxing jurisdictions within the United States (except, Washington D.C., Alaska and Hawaii) and most Canadian provinces. The basic goal is a simplification of fuel use licensing and one administrating base jurisdiction.
A motor carrier should register with Indiana as an IFTA licensee if Indiana is the base jurisdiction and the motor carrier operates a qualified motor vehicle in at least one other state besides Indiana.
A qualified IFTA motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and:
- Has a gross weight greater than 26,000 pounds; or
- A registered gross weight exceeding 26,000 pounds; or
- Has three or more axles regardless of weight; or
- Is used in a combination and the weight of the combination exceeds 26,000 pounds; or
- Is a passenger vehicle that has seats for more than nine (9) passengers in addition to the driver.
The intra-state compliance emblem and fuel permit cab card is only valid inside Indiana. A qualified motor vehicle is any motor vehicle propelled by motor fuel that is;
- A passenger vehicle having seating for more than nine passengers in addition to the driver;
- A road tractor;
- A tractor truck;
- A truck having more than two axles;
- A truck having a gross weight greater than 26,000 pounds;
- A truck having a registered weight greater than 26,000 pounds;
- A combination vehicle (truck and trailer) having a gross weight greater than 26,000 pounds;
- A combination vehicle having a combined registered weight greater than 26,000 pounds.
Exemptions from the Annual Fuel and Road Tax Registration
The following vehicles are exempt from the Fuel and Road Tax:
- Vehicles operated by the State of Indiana or a political subdivision;
- Vehicles operated by the United States or by an agency of states in which Indiana participates;
- School buses operated by, for, or on behalf of a state, a political subdivision of a state, or a private or privately operated school;
- Vehicles used in casual or charter bus operations;
- Vehicles registered by the Bureau of Motor Vehicles as farm trucks, farm trailers or farm semi trailers and tractors, or under a similar law of another state;
- An intercity bus;
- Vehicles displaying a dealer registration plate; or
- Recreational vehicles.
For further information contact:
- Indiana Department of Revenue
- Motor Carrier Services Division
- Fuel Tax Section
- 7811 Millhouse Road., Suite M
- Indianapolis, In 46241