Offical Nebraska Government Website

Did You Know?

Nebraska joined the IRP program in 1975 and IFTA in 1990. Prior to the base state agreements, carriers were required to file an application with each state they traveled in.

Did You Know?

2014 IRP,IFTA & UCR have been mailed. Enforcement dates for 2014 are IRP February 1, 2014, IFTA March 1, 2014, UCR January 1, 2014.

Motor Carriers

Remember all mileage and fuel source documents for the IRP & IFTA programs need to be kept for five years. Click here for more information.

Did You Know?

We are now accepting IRP & IFTA payments on-line.

Did You Know?

Federal Heavy Vehicle Use Tax (HVUT) Form 2290 for the 2013/2014 year is now being processed by the IRS.

INTERNATIONAL FUEL TAX AGREEMENT (IFTA)

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International Fuel Tax Agreement (IFTA) is a fuel tax compact between member jurisdictions including all contiguous states and all Canadian provinces. The agreement promotes and encourages the most efficient use of the highway system by making the administration of motor fuel taxation uniform concerning motor carriers operating in several member jurisdictions, there by reducing paper work and compliance burdens for fuel tax reporting. The advantages of IFTA include: a single fuel tax license issued by the base jurisdiction authorizing travel in all IFTA jurisdictions; a quarterly tax return containing mileage and gallon information for each of the member jurisdictions will be submitted only to the base jurisdiction; fuel tax audits are generally performed only by the base jurisdiction. Carriers who travel only in Nebraska should not be licensed for IFTA. The agreement is administered by the International Fuel Tax Association (IFTA, Inc.), Nebraska has been a member of IFTA since 1990.

2013 2014 IFTA Procedures Manual

Who qualifies for IFTA?

Advantages of IFTA?

Quarterly returns?

What are the penalties for not filing your return?

Open City, Reciprocal Agreement

How do I apply?

How to determine base jurisdiction?

What is an IFTA license?

Decals, where to place them?

How to receive a temporary decal/permit?

Record Keeping?

Audit?

 

Who qualifies for IFTA?

A motor vehicle used, designed or maintained for transportation of persons or property and:

  1. having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 lbs. or 11,707 kgms.
  2. having three or more axles regardless of weight; or
  3. used in combination when the weight of such combination exceeds 26,000 lbs. or 11,707 kgms gross vehicle weight or registered gross vehicle weight.

Qualified motor vehicle does not include recreation vehicles

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Advantages of IFTA?

  1. single fuel tax license issued by the base jurisdiction authorizing travel in all IFTA jurisdictions
  2. a quarterly tax return containing mileage and gallon information for each of the member jurisdictions will be submitted only to the base jurisdiction
  3. fuel tax audits are generally performed only by the base jurisdiction

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Quarterly returns?

Under IFTA, you are required to file quarterly fuel tax returns with your base jurisdiction, showing all miles traveled and all fuel consumed during the quarter by qualified vehicles, including the miles traveled and fuel consumed in each IFTA jurisdiction. The amounts listed for each jurisdiction on the report are used to calculate a net balance. Any additional tax due is remitted to the base jurisdiction, or a credit or refund is issued. It is the responsibility of the base jurisdiction to distribute the taxes to the appropriate member jurisdictions based on the information from your IFTA tax return.

All licensees must submit the IFTA tax return every quarter. A return must be submitted each quarter even if:

  1. No taxable miles were traveled
  2. All miles traveled were in Nebraska

Returns will be furnished each quarter indicating the current tax rates for each member jurisdiction. Current tax matrixes can be viewed on IFTA, Inc. Failure to receive the tax return does not relieve you from the obligation of filing in a timely manner or submitting the return. All returns will be filed on a quarterly basis. The reporting quarters and due dates are:

Reporting Quarter Due Date
January-March April 30
April-June July 31
July-September October 31
October-December January 31

Paying your IFTA balance just got easier! You can now pay your IFTA balance on-line by either e-check (withdrawal from your bank account) or by credit card using Visa or MasterCard. If you file your return on-line and owe a balance, the system will easily navigate you through the on-line payment screens. If you filed your return on paper but have not paid the balance, access our system at MCS. Click �Access Motor Carrier Services (user ID and Password NOT required). Click �Print, Submit or View an IFTA Return�. Once you are through the security questions, you will find the new Online Payment option.

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What are the penalties for not filing your return?

A penalty of $50.00 or ten percent of the net tax liability, whichever is greater, will be assessed on late-filed returns, failure to file, or for underpayment of tax due. If the net tax liability is zero or a credit, the late filing penalty will still be $50.00.

To avoid penalty for late filing, the tax returns must be postmarked not later than midnight on the date indicated. If the last day of the month falls on a Saturday, Sunday, or legal holiday, the next business day will be considered as filed timely.

Interest is assessed on all delinquent taxes due each jurisdiction. The interest rate is one percent per month. Interest will be calculated from the date the tax was due for each month or fraction of a month until paid.

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Open City, Reciprocal Agreement

A qualified motor vehicle owned or leased and operated by a resident of either NE or IA that only makes deliveries within the corporate limits of the cities listed below, is not required to be in IFTA: Nebraska - Omaha, Bellevue, Dakota City, Nebraska City and South Sioux City Iowa - Council Bluffs, Carter Lake, Port Neal, Hamburg and Sioux City A qualified motor vehicle owned or leased and operated by a resident of either NE or IA that only operates in the *Federal Commercial Zone of either Omaha or Council Bluffs is not required to be in IFTA. * Federal Commercial Zone. The Federal Commercial Zone is based on the population of the city. The commercial zone for Council Bluffs, based on the population from the 2000 census, is a 6-mile radius around the city limits. The commercial zone for Omaha is a 10-mile radius around the city limits. The complete definition for the Federal Commercial Zone can be found on the federal website at Federal Motor Carrier Safety Administration (FMCSA) Safer System. (Commercial Zones � Sec. 1048.101)

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How do I apply?

  1. Complete the Nebraska Combined IRP/IFTA Application, entering information in the areas printed in black.
  2. Include $10.00 for first qualified vehicle, plus an additional $1.00 for each additional qualified vehicle.
  3. Upon receipt of the appropriate fees, Motor Carrier Services will issue an IFTA license and decals for qualified vehicles.
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How to determine base jurisdiction?

  1. Qualified motor vehicles are based for vehicle registration purposes; and
  2. Operational control and records of the qualified motor vehicles are maintained, or where the records can be made available; and
  3. Some mileage is accrued by qualified motor vehicles within the fleet.

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What is an IFTA license?

Each licensee is issued one IFTA license or cab card. The licensee is required to make copies of the license so that one copy is carried in each qualified vehicle. Failure to display a copy of the license can subject the vehicle operator to the purchase of a trip permit and a citation. If the original copy of the IFTA license is lost or destroyed, a duplicate may be obtained by submitting a written request to Motor Carrier Services.

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Decals, where to place them?

Each licensee is issued a set of decals for each qualified vehicle in its fleet. One decal must be placed on the exterior portion of the cab's passenger side. The second decal must be placed in the same position on the driver's side. Decals are not truck specific.

In the case of transporter, manufacturers, dealers, or drive-away operations, the IFTA decal need not be permanently affixed but may be temporarily displayed in a visible manner on the cab's passenger side. In the case of buses, the decal may be located on the driver's side.

Decals are obtained annually at the time of renewal for all qualified motor vehicles based in Nebraska. The carrier throughout the year may obtain additional decals by mailing the request (IFTA Additional Decal Application ) in writing along with the applicable fee of $1.00 for each additional set.

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How to receive a temporary decal/permit?

A temporary decal/permit is valid for a period of thirty (30) days and must be carried in the cab at all times, along with a copy of the IFTA license. Failure to carry the temporary decal/permit may subject the vehicle operator to purchase a trip permit and citation. To receive a temporary permit contact Motor Carrier Services at (888) 622-1222.

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Record Keeping?

You must maintain records to support information reported on the quarterly tax return for a period of four years from the due date of the return or the date filed, whichever is later. Our audit staff requires that all IFTA carriers sign and return to our office a Notice of Record-Keeping Requirements for IFTA/IRP please retain a copy of this form for your records.

Mileage Records

An acceptable mileage accounting system is important in compiling the data necessary to complete the IFTA tax return. Your records must include mileage data for each trip on each vehicle and be restated in monthly and quarterly fleet summaries. Supporting information must include the following:

  1. date of trip (starting and ending);
  2. trip origin and destination;
  3. routes of travel;
  4. beginning and ending odometer reading of the trip;
  5. total trip miles;
  6. mileage by jurisdiction;
  7. unit number or VIN;
  8. vehicle fleet number;
  9. registrant�s name

Other forms that may be used for recordkeepingTrip Sheet COLORADO ONLY,Trip Sheet IOWA ONLY, ,Trip Sheet KANSAS ONLY, ,Trip Sheet SOUTH DAKOTA ONLY and Trip Sheet MULTI-STATE

Fuel Records

Fuel Records

You must maintain complete fuel records, supported by fuel receipts, of all purchases as reported on the return. Fuel purchases will consist of diesel, gasoline, gasohol, propane, or natural gas. Separate totals must be compiled for each fuel type and for each vehicle on monthly and quarterly fleet summaries. Over the road (O.T.R.) fuel purchases and bulk storage fuel purchases are to be accounted for separately.

Over-the-road (O.T.R.)

A receipt, invoice, a credit card receipt, or an automated vendor-generated invoice or transaction listing must support tax paid purchases. In order for you to be allowed credit for O.T.R. purchases of fuel, the receipt must contain:

  1. date of purchase
  2. name and address of seller
  3. number of gallons purchased
  4. type of fuel purchased
  5. price per gallon or liter
  6. unit or plate number into which the fuel was placed
  7. licensee�s name

O.T.R. fuel receipts must identify the vehicle by the unit or plate number. Only vehicles identified with your operation may be reported for mileage and fuel consumption.

Bulk Storage Fuel

Bulk storage fuel is normally delivered into fuel storage facilities maintained by the licensee. The licensee must retain copies of all delivery tickets and/or receipt.

With respect to withdrawals from bulk storage fuel, tax paid credit can only be given if the following detailed records are maintained;

  1. date of withdrawal
  2. number of gallons withdrawn
  3. type of fuel
  4. unit or plate number into which the fuel was placed
  5. purchase and inventory records to substantiate that tax was paid on all bulk withdrawal
  6. meter readings, inventory measurements and monthly reconciliation

IFTA decals

You should be able to provide a complete inventory (IFTA Decal Inventory Sheet ) of all IFTA decals. If you purchase more decals than are used, these should be kept for audit purposes for a four-year period.

On-board recording devices

At the option of the carrier, on-board recording devices, satellite tracking systems, or other electronic data-recording systems may be used in lieu of or in addition to handwritten trip reports for record purposes only. Any carrier interested in using an electronic recording system, should contact Motor Carrier Services prior to its use.

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Audit?

Every IFTA licensee is subject to audit. In the event you are chosen for an audit, you will be contacted by Motor Carrier Services audit staff prior to the beginning of an audit so that all the required records are available. A written confirmation will be sent to you. If you fail to provide records for an audit, the statute of limitations is extended until records are provided.

If your records are unacceptable for audit purposes the audit staff may determine the following:

  • Gallonage may be estimated based on prior experience of the licensee or by comparison to similar operation;
  • A standard of 4.0 miles per gallon will be used;
  • All claims for tax-paid fuel without supporting documentation will be disallowed; and
  • The burden of proof lies with the licensee

Once your audit is completed, the findings are reported in writing to you and affected jurisdictions. Nebraska will collect any tax, penalty, and interest owed to all member jurisdictions.

Appeal Procedures

You may appeal an action or audit finding issued by any member base jurisdiction by making a written request for a hearing within thirty (30) days after you receive final notice of audit findings. If the hearing is not requested in writing within thirty (30) days, the original finding or action is final. If you appeal an assessment for one or more jurisdictions, Nebraska will participate in the appeal process on behalf of the other jurisdictions. A hearing will be held as soon as possible, but could be continued for reasonable cause shown by either party. Motor Carrier Services will give at least twenty (20) days written notice of the time and place of hearing.

In an appeal, you may appear in person and/or be represented by counsel at the hearing and entitled to produce witnesses, documents or other pertinent material to support your appeal. Motor Carrier Services will notify you of the findings of fact and ruling on the appeal.

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Motor Carrier Services
301 Centennial Mall South
P O Box 94729
Lincoln NE 68509-4729
1-402-471-4435
(Toll Free) 1-888-622-1222
Fax 1-402-471-4024
Office Hours:
Monday-Friday
8:00 a.m.-5:00 p.m.
Central Time