Penske can help you stay legal
Penske offers licensing services for your contract equipment. Vehicles that do not travel in two or more jurisdictions will be licensed in their domiciled jurisdiction, in most applications. Vehicles that meet the definition of a qualified vehicle* and regularly travel in two or more jurisdictions will receive an apportioned license plate under the International Registration Plan (IRP). These vehicles may travel into all states and provinces; however, each account is administered from its base jurisdiction. Customers must still log and submit distance traveled in each jurisdiction for the purpose of renewal. See Penske's submission instructions for details.
Determination of Fees for Apportioned Registration
- Customers submit miles to Penske quarterly for proper distance documentation and fee calculation.
- Divide the in-jurisdiction miles by the total distance generated during the preceding mileage year (July 1 through June 30) to determine percent of distance operated in each jurisdiction.
- Multiply each jurisdiction's applicable base plate fee by the percentage for each jurisdiction to determine the fees due.
For further clarification, refer to this License Apportionment Fees Example which shows how fees are calculated for a tractor based in Pennsylvania and traveling in Pennsylvania, Maryland, Virginia and Tennessee.
Refer to irponline.org for current fee schedules by weight class.
Please be sure to submit distance to Penske on a regular basis to ensure timely, accurate reporting to respective jurisdictions and fee calculations. Please see Penske's submission instructions for more details.
* The plan defines an apportionable vehicle as any vehicle that is used or intended for use in two or more member jurisdictions and that is used for the transportation of persons for hire or designed, used, or maintained primarily for the transportation of property, and:
- has two axles and a gross vehicle weight or registered gross vehicle weight in excess of 26,000 pounds (11,793.401 kilograms), or
- has three or more axles, regardless of weight, or
- is used in combination, when the gross vehicle weight of such combination exceeds 26,000 pounds (11,793.401 kilograms).
Exceptions: recreational vehicles, vehicles displaying restricted plates, or government-owned vehicles.
Optional: trucks or truck tractors, or combinations of vehicles having a gross vehicle weight of 26,000 pounds (11,793.401 kilograms), or less.
A fuel tax and/or distance tax permit indicates to law enforcement that a carrier has an established tax account to report and pay respective fuel and/or distance taxes.
Types of Permits
Weight Distance – The following states impose distance taxes based on weight:
- Kentucky – Vehicles having a licensed weight of more than 59,999 lbs.
- New Mexico – Vehicles having a licensed weight of more than 26,000 lbs.
- New York (also known as HUT) – taxes vehicles one of two ways depending on how the account is established:
- Gross weight greater than or equal to 18,000 pounds, or
- Unladen weight of more than 8,000 pounds for trucks; unladen weight of more than 4,000 pounds for tractors
- Oregon (also known as a Weight Receipt) – Vehicles having a licensed weight of more than 26,000 lbs.
Fuel – The following states impose a tax based on fuel purchases or use:
- IN, KY, CT, PA, NC, and UT are Fuel Tax States. If the vehicle is a qualified unit and base plated in these states, a fuel permit is required. An IFTA decal can be used in its place, but Driver Trip Reports (DTRs) are required.
- IN and KY – You must submit DTRs because these states charge a surtax. Submission of a periodic fuel tax return is required to pay the taxes.
- CT, PA, NC, and UT – A periodic tax return is not required; therefore, DTRs are not required. Standard practice, however, is to keep track of miles driven on a quarterly basis along with fuel records.
Trip – Permits may be required for base plated vehicles to travel into neighboring jurisdictions. Call Penske's Fleet Services Customer Support team at 800-526-0664 to assist with securing trip permits.
IFTA – The International Fuel Tax Agreement (IFTA) enables participating jurisdictions to act cooperatively and provide mutual assistance in the administration and collection of motor fuels use taxes. All contiguous U. S. states (except Oregon) and ten Canadian provinces impose a motor fuels use tax on qualified vehicles.** IFTA reporting is performed quarterly based on calendar quarter operations. Tax rates are set by each jurisdiction. Fuel use tax calculation is based on Fleet MPG.
Determination of Fuel Use Taxes
- Calculate fuel used (gal.): (taxable miles/MPG over your fleet)
- Calculate fuel to be taxed or credited (gal.): (fuel used less fuel purchased)
- Multiply fuel to be taxed or credited by fuel use tax rate ($)
- Where applicable, multiply fuel to be taxed or credited by fuel use surtax rate ($)
- Calculate total fuel use taxes ($): Add 3 and 4 above.
For further clarification, refer to this Fuel Use Taxes Example which shows the fuel use tax calculation for a fleet of IFTA qualified vehicles that travel in four states.
Refer to iftach.org for fuel use tax rates.
** A qualified vehicle is defined by IFTA as a vehicle that travels inter-jurisdictionally and:
- having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or
- having three or more axles regardless of weight; or
- is used in combination, when the weight of such combination exceeds 26,000 pounds or 11,797 kilograms gross vehicle or registered gross vehicle weight.
New Mexico and Oregon utilize this vehicle criteria to determine vehicle activity that qualifies for reporting under their respective Weight Distance tax programs, the difference being that intrastate activity qualifies as well.