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ITFA Question

Dec 22, 2020 at 02:51 PM CST
+ 1

I just got my authority in Texas to run for a dedicated customer. Originally the loads were going across the state lines and returning to Texas daily. I applied for IRP plates and i'm still waiting for them now. The customer is now offering me a Texas only run. My question is if I take the Texas only run with IRP plates do I still have to apply for IFTA? Or should I try to switch from IRP plates to regular combination plates? Thank You for reading my post.

Replied on Tue, Dec 22, 2020 at 04:39 PM CST
+ 1

If you run under the IRP you are required to register with IFTA. In your situation, even if you get the IRP tags and IFTA but don’t run in at least two other IFTA jurisdictions, you probably will be denied the renewal next go around because travel to other states is a requirement for the IRP. If you have zero interest in running out of state you will probably want to back out of the IRP tags.

If you want to keep your options open, in case your new run is not what you expect, or doesn’t last, move forward with the IRP and register with IFTA. Just make sure to make a few trips out of state each year to stay in compliance. If after a couple of years, you realize you don’t need the IRP, then make the change. I wouldn’t sweat the IFTA deal, you report your mileage quarterly and you can file it yourself on line in a few minutes. All you need is a simple excel spreadsheet to track your miles and fuel purchases, or use a trucking GPS, or set up a fuel account with the places you plan on purchasing the majority of your fuel.

This response is a little deeper than your original question but is worth considering. If you run under the IRP and purchase equipment, sales tax is not collected as long as you stay in the IRP for two years. If you change before the two years are up, the state will come after you for the sales tax.

Good Luck!