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INFORMATION CONCERNING MOTOR CARRIERS ROAD TAX

AND INTERNATIONAL FUEL TAX AGREEMENT

NATURE OF TAX:

The motor carriers road tax (MCRT) requires the payment of a tax equivalent to the rate per gallon multiplied

by the amount of fuel used on PA highways. Credit is given for tax paid on fuel purchases in Pennsylvania.

The tax rate and credit is equal to the PA motor fuel tax rate currently in effect.

INTERNATIONAL FUEL TAX AGREEMENT (IFTA):

Pennsylvania implemented the provisions of IFTA on Jan. 1, 1996. This resulted in two significant changes:

(1) A vehicle subject to MCRT and IFTA is a qualified motor vehicle which is one designed, used or maintained

for the transportation of persons or property which is:

A. a power unit with two axles and a gross or registered gross weight greater than 26,000 pounds;

B. a power unit with three or more axles regardless of weight; or

C. a combination where the declared combination weight exceeds 26,000 pounds, or where the vehicles

used in combination (truck and trailer) exceeds 26,000 pounds.

The definition does not include a recreational vehicle that is a camper, a pickup truck with an attached camper,

or a bus used exclusively for personal pleasure and not in conjunction with any business enterprise.

(2) Carriers will operate under a "base state" (jurisdiction) concept for tax registration and reporting

purposes. This means that a PA carrier operating a qualifying vehicle in Pennsylvania and another IFTA

jurisdiction will obtain its decal(s) and credentials from Pennsylvania to operate in all IFTA jurisdictions,

and the carrier will report to Pennsylvania road taxes due all IFTA jurisdictions. Pennsylvania, in-turn, is

responsible for sending the taxes due to other IFTA jurisdictions to them. This benefits the carrier since

the amount due is the net tax due or credit due all IFTA jurisdictions. Also, only one set of decals, from

the carrier’s base state, is required to operate in any IFTA jurisdiction. As of Jan. 1, 2000, the District of

Columbia, Northwest Territories and the Yukon Territory are the only jurisdictions not participating in

IFTA.

MOTOR CARRIER ROAD TAX AND IFTA CREDENTIALS:

A. Every qualified motor vehicle will be issued two decals. Decals must be displayed on the passenger

and driver’s sides of the power unit. IFTA decals are issued for IFTA operations as described above.

PA MCRT decals are issued to Pennsylvania based vehicles that travel exclusively in Pennsylvania.

B. Vehicles subject to IFTA (those based in Pennsylvania and operating in Pennsylvania and any other IFTA

jurisdiction) must carry an IFTA license or a legible photocopy of the license in each such vehicle.

C. Pennsylvania-based vehicles that do not operate outside of Pennsylvania will be required to carry

PA-MCRT credentials card in each vehicle.

D. The fee for each set of decals (2 per unit) is $5. All PA-MCRT and IFTA credentials, are issued on

a calendar year basis, from Jan. 1 to Dec. 31.

Anyone operating a qualified motor vehicle as described above, unless exempted (see exemptions), is a

motor carrier.

Carriers purchasing IFTA credentials must file quarterly IFTA Fuel Use Tax reports (IFTA-100) along with

applicable IFTA Quarterly Fuel Use Tax schedules (IFTA-101) which must be filed for each fuel type used in

operating qualified motor vehicles.

Effective Oct. 1, 1997, carriers purchasing PA MCRT credentials will no longer need to file quarterly reports.

Instead, such carriers will report exclusive PA operations on their yearly renewal application.

Carriers must renew their accounts annually for the ensuing license year.

ENFORCEMENT:

The Pennsylvania State Police, local municipal forces, employees of the PA Department of Revenue, the PA

Department of Transportation, and the PA Public Utility Commission, qualified in accordance with Section 6117

of the PA Vehicle Code, are enforcing the decal provisions of PA-MCRT and IFTA. The law requires the display

of decals as described above. To avoid prosecution, display decals on all applicable vehicles. Failure to com-

ply with these provisions may, upon summary conviction, result in a fine of up to $500 and/or imprison-

ment for 90 days or both. A carrier also could be required to purchase a trip permit.

Bureau of Motor and Alternative Fuel Taxes

PO Box 280646 l Hbg, PA 17128-0646 l 800.482.4382 l

REV-1026 MF (06-13)

Form Rev-1026 - Information Concerning Motor Carriers Road Tax And International Fuel Tax Agreement

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