HVUT – Heavy Vehicle Tax Use
Compliance and Driver Trip Reporting
Fuel and Mileage Tax
The Title Control Department is responsible for ensuring that all vehicles in the Penske fleet are properly titled in accordance with governmental laws. The goal of the Title Control Department is to make certain that all titling needs are met in an efficient and cost-effective manner. Whether it is the initial titling processing, an amendment to the licensing or a change in the state of domicile, the Penske Title Control Department is committed to meeting our goals and those of our customers when securing the proper title documentation.
The Title Control Department is responsible for the processing and distribution of all Manufacturers' Statement of Origin (MS) for U.S. vehicles and New Vehicle Information Statement (NVIS) for Canadian vehicles. These documents are required for Penske to obtain a title and registration for new vehicles. The department is responsible for tracking, receipt and warehousing of all ownership documentation. In addition, it is also responsible for the management of the Canadian Personal Property Security Act (PPSA), which, if not administered properly, can result in the seizure of Penske vehicles.
International Registration Plan, apportioned vehicle license, mileage summaries, application preparation, invoice payment, and plate distribution for installation at the vehicle's location of domicile.
An annual highway use tax is imposed on the owner of trucks, truck tractors, and buses that have a taxable gross weight of 55,000 pounds or more. The tax is suspended for vehicles expected to be used 5,000 miles or fewer per year (7,500 miles for agricultural vehicles) on U.S. highways.
The tax ranges from $100.00 for a 55,000 pound vehicle to $550.00 for any vehicle over 75,000 gross. The tax increases at $22.00 per 1,000 increment from 55,001 – 75,000.
A fuel or mileage tax permit indicates to law enforcement that a carrier has established a tax account to report and pay fuel and mileage tax liabilities. Any company, operating a qualified unit(s) in more that one jurisdiction, is required by the International Fuel Tax Agreement (IFTA) to permit the unit. The permit consists of an IFTA license, which is carried in the permit book and a decal for each side of the vehicle. All rental trucks and most lease units are permitted in Penske's name, while CMAINT units are permitted in the customer's name, since they are the vehicle owner.
A qualified vehicle:
Kentucky, New Mexico, New York and Oregon may require a mileage tax permit.
Driver Trip Report processing is to record jurisdictional mileage and fuel purchase information for preparation of jurisdictional tax filings. In addition to manually prepared Driver Trip Reports, onboard computer generated trip records, data files, and documents are acceptable for processing.
The Compliance Service Representatives support customers and help to resolve Fuel Tax compliance issues they may have. They serve as an educational and training resource for operating tax compliance.
In addition, they can provide analytical data for our customers to assess opportunities for compliance improvement. They can also provide assistance in analyzing fuel and mileage tax billings. Representatives can be reached at 800-450-5729.
Fuel and mileage tax return computation, return preparation, and issuance of tax payment. Where necessary, coordination with other divisions of your company or other lessors is provided to assist with those jurisdictions, which by statute, require a single tax account.
The Canadian provinces and the continental U.S., with the exception of Oregon, tax licensed users of motor fuel based on the number of miles traveled in a province or state, the amount of fuel consumed, and the amount of fuel purchased. The collection of these taxes is done through a carrier's base jurisdiction under the International Fuel Tax Agreement (IFTA). Penske's base for IFTA is Minnesota.
The states of IN, KY, MI, OH, and VA have surtaxes. This means that they tax the fuel used at a higher rate than the credit given for tax paid when fuel is purchased.
Current fuel tax rates can be viewed on the IFTA web site at http://www.iftach.org
The states of KY, NM, NY and OR charge a tax based on miles traveled within the state. The tax rate is normally determined by the weight of the vehicle or combination.
How is the tax calculated? The tax is calculated by dividing the total miles traveled by total fuel purchased during the reporting period, usually quarterly. The resulting average miles per gallon is then divided into the miles traveled in each state to determine the amount of fuel that was used within each state. Each state has a use rate and a purchase rate. The number of gallons used in a state is multiplied by the corresponding use rate to determine the tax due. States give a credit against this liability for the number of gallons purchased in the state multiplied by the purchase rate. The net is the tax due in that state.
Mileage taxes are calculated by determining the number of miles a vehicle traveled in the state and then multiplying that amount by the tax rate based on the weight of the vehicle.
The mileage tax rates:
Audit support is provided in response to jurisdictional notification regarding review of tax or IRP accounts. Driver Trip Reports are retrieved from storage and the auditors are assisted to ensure proper scheduling and the successful conclusions of each audit.
Penske's Tax Audit Department handles over 100 state audits per year. These range from desk audits of our customers' accounts, where information is sent to the auditors, to audits of Penske accounts or a number of customer accounts, where an audit team from the jurisdiction will spend weeks at Penske. The auditors are looking for compliance with the fuel and mileage tax laws.
They will review records looking for missing miles due to lack of Driver Trip Reports (DTRs), miles reported to the wrong jurisdiction and missing fuel receipts. A benefit to our Lease customers that are included in the Penske accounts is that they are not subject to individual audit. However, if they are not in compliance, their failure to maintain proper records will result in an assessment to Penske.
Driver Trip Reports: 800-450-5729
Fuel and Mileage Tax: 800-450-5729
Fleet Services: 800-526-0664
Penske Truck Leasing Co LP
Dept. R – Attn: DTR Dept
PO Box 981056
El Paso, TX 79998-1056
FedEx Overnite Service:
Penske Truck Leasing Co LP
Attn: DTR's Department
1701 Hawkins Blvd.
El Paso, TX 79925
*Fedex MUST mark it "Hold for Pickup."
Other Overnight Services:
Gecis Int. Holdings / EDM
C/O Brokers Logistics, LTD
1000 Hawkins Blvd., Suite A
El Paso, Texas 79915
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