Fuel Permit Types And Why Excuses For A Lack Of One Are Not Allowed
IFTAs are international fuel tax agreements. Every company that runs a shipping or freight truck on the road and operates out of a state that has these fuel tax agreements in place has to carry the permits visible in every vehicle so that they are seen at weigh stations. Additionally, the companies can be properly reimbursed for tax paid on fuel purchased in other states and Canada. If you do not have an IFTA permit, or if such an agreement does not exist in your state (there are a few states that do not participate), then you can get temporary fuel permits. Here is more on these types of fuel permits and why no one operating one or more of these large vehicles for shipping purposes is exempt from having any sort of fuel permit.
Opting out of IFTA
IFTA operates in most states and is labeled as "international" because it has a joint relationship with Canada. Taxes are higher in Canada on gasoline in many provinces, and all of the states surrounding your home state (and base of operations) may have higher taxes on gas as well. IFTA membership is seen as a real boon to trucking industries because it helps offset all of the extra expenses for fuel when fuel costs far more along the trucking routes than it does "back home."
Your trucking business is reimbursed for these extra gas taxes through IFTA, and you are supplied the means to gain a credit on your business taxes when you file. However, you do not have to join IFTA. You can opt out, especially if you are a "freelance" trucker operating only one truck. You will still need a fuel permit when traveling, however, and that is where the temporary permits come into play.
Temporary Permits (IRP Permits)
Temporary permits allow you to travel to other states and provinces, purchase and consume fuel, and continue on your route. Depending on what states and provinces you are going to drive through, your permits may be as little as five dollars to as much as a hundred dollars. Driving without permits means that the DOT/DMV in each state and Canada's highway patrol may charge you fines if they pull you over, or if you cannot produce the permits at a weigh station. Driving a truck with a deadline schedule and without a trip/temporary permit or IFTA permit means a loss of time and money when you are pulled over and fined.
