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FUEL
TAX LICENSING AND REPORTING Generally. Anyone operating qualified motor vehicles in Maine is required to satisfy fuel tax licensing and reporting requirements. Maine is a member of the International Fuel Tax Agreement (IFTA). Maine-based intrastate commercial vehicle operators and/or operators from non-IFTA jurisdictions also must license for fuel tax reporting. IFTA. Maine is a member of the International Fuel Tax Agreement (IFTA). Every state in the continental U.S. and all Canadian provinces are IFTA members. In IFTA, a motor carrier contacts only its base (home) jurisdiction to license for fuel tax reporting in all IFTA member jurisdictions. The base jurisdiction issues the carrier license and vehicle decals which are valid in all IFTA jurisdictions. No IFTA jurisdiction may require any additional fuel tax licensing requirements. The carrier makes quarterly tax returns and payments to its base jurisdiction covering fleet operations in all IFTA jurisdictions. The base jurisdiction, in turn, distributes tax payments to the other IFTA jurisdictions, as appropriate. The base jurisdiction also is responsible for fuel tax auditing. Generally, in IFTA, only a carrier’s base jurisdiction may conduct an audit. Where appropriate, Maine conducts combined IFTA/IRP audits. Determining a base state. Maine may be your base state if:
Qualified motor vehicle. A qualified motor vehicle is a motor vehicle that travels in two or more IFTA jurisdictions, and
Fuels covered. Maine requires qualified motor vehicles using special fuel such as diesel, propane, or natural gas to be licensed for fuel tax reporting. Many jurisdictions require gasoline-powered vehicles to be licensed. If you own gasoline-powered, qualified vehicles, you should check the requirements of the jurisdictions you plan to operate in. Fuel Tax Licensing/Trip Permits lists the fuel tax requirements for each jurisdiction. Maine-based carriers with qualified gasoline-powered vehicles still will license for IFTA through the State of Maine. Application process. IFTA requires an annual license and vehicle decals. IFTA fuel tax unit will mail renewal applications automatically to all active accounts. If you do not receive an application, call the IFTA fuel tax unit 207- 624-9000 ext. 52136, or any Maine BMV branch office. Upon successful processing of your application, you will be issued an annual license. All IFTA licenses expire December 31. Intrastate licenses expire June 30th. A copy of your license must be carried in each qualified vehicle. Decals. For IFTA, you will be issued a set of two decals for each qualified vehicle. One decal is placed on each side of the vehicle, usually on the doors. Decals also expire December 31. Intrastate decals expire June 30th. Maine charges five dollars ($5.00) per set for decals. Intrastate qualified vehicles receive one decal to be displayed on the driver side door. Fuel Tax Reporting. Carriers licensed for fuel tax reporting are required to make calendar quarterly fuel tax returns. For IFTA carriers, the returns cover travel for all qualified vehicles in all IFTA jurisdictions. Tax returns will be mailed to you. If you do not receive a tax return, call the Fuel Tax Unit. Most intrastate carriers are excused from tax filing. IFTA tax returns must be filed within one month of the close of the quarter. The return must be filed even if you do not operate during that quarter. Quarterly returns must be accompanied by any tax payment that may be due. IFTA carriers make one payment for all IFTA jurisdictions. Checks must be made payable to the Maine Secretary of State. If your credits from tax-paid fuel exceed your taxes owed, you will receive either a refund or a credit to be applied to future tax liabilities. If your credit is less than one hundred dollars ($100.00), your credit must be carried forward unless you are closing your account. Suspensions. A carrier failing to file a quarterly fuel tax return or failing to pay any tax due will be suspended. Suspended accounts may not operate in any of the IFTA jurisdictions until the suspension is resolved. In order to resolve any suspension a carrier must file the appropriate returns and pay any tax, interest, and penalties that may be due. In addition, before an account is restored a thirty dollar ($30) reinstatement fee must be paid to the Secretary of State. A carrier failing to pay any audit assessment will be suspended. A carrier may appeal an audit assessment to the Maine Revenue Services. An appeal stays the suspension order until the appeal is settled. If a carrier fails to pay any court-imposed fine or Bureau of Motor Vehicle reinstatement fee, the carrier’s account will not be renewed. If a registrant’s account is suspended, the registrant must return the IFTA license and all decals to the Fuel Tax Unit. Upon restoration, decals may be replaced at full fee. Estimated Taxes. If a registrant fails to file a tax return, the Fuel Tax Unit may assess estimated taxes based on the registrant’s reporting history. Penalty. The penalty for the failure to file quarterly fuel tax returns or to pay any taxes that may be due is fifty dollars ($50) or ten percent (10%) of the tax, whichever is greater. The penalty is in addition to any tax and interest, which may be due.
Interest. Interest on unpaid taxes is assessed at the rate established by IFTA. Tax-Paid Purchases (Receipts). Credit may be taken for any fuel bought tax-paid in any IFTA jurisdiction. In order to receive credit you must have a receipt for the tax-paid fuel. The following receipt information is required:
Record Keeping Requirements. Generally, record keeping for fuel tax reporting is the same as for the International Registration Plan (record keeping requirements). You are required to maintain individual vehicle mileage reports and to summarize these reports monthly. In addition to keeping the mileage information required by the IRP, you must maintain information on any fuel purchased from a service station, and any fuel removed from bulk storage. Vendor–generated automated records are acceptable documents for fuel purchases. Complete records are required for all miles of travel including miles outside of the IFTA jurisdictions. Records must be maintained for four years after the closing of the tax period or the filing of the tax return, whichever is later. Replacement decals. Decals may be replaced without payment of additional fees only under the following conditions:
Trip Permits. In lieu of fuel tax licensing you may obtain trip permits. For Maine, fuel trip permits may be obtained through the wire services or directly through the Fuel Tax Unit, (207) 624-9000 ext. 52136. The fee is fifty dollars ($50) for three (3) days. Other jurisdictions’ trip permit requirements are listed in Fuel Tax Licensing/Trip Permits. Temporary Licenses. You may obtain a temporary thirty (30) day license to operate a specific qualified vehicle. The thirty (30) day temporary license automatically becomes an annual license. The temporary license is available directly from the Fuel Tax Unit, or through several of the wire services with the approval of the Fuel Tax Unit. The thirty (30) day temporary fuel license must be carried in the vehicle and must be presented to any law enforcement officer on demand. Within thirty (30) days you will receive an annual decal that will expire on the next December 31. Change of Address. You must notify the Fuel Tax Unit of any changes of address within ten days. Early Display. Maine allows valid decals to be displayed on December 1 of the previous year. That is, valid 2002 decals may be used starting December 1, 2001. Early display applies only for the renewal of an existing account. Renewal. Fuel Tax accounts in good standing will be mailed a renewal application form for the following year by about October 15th. The Fuel Tax Unit processes applications on a first-in, first-out basis. Applications may be faxed to the Fuel Tax Unit, and decals may be paid for with a credit card, however faxed renewal applications received between December 1 and January 31 will be treated as if they were received in the mail. At other times, faxed applications accompanied by a credit card payment usually will be processed the same day. All new and renewal applications are checked for fuel tax suspensions in all jurisdictions. In addition, the Fuel Tax Unit checks to make certain the carrier has no unpaid court fines or unpaid motor vehicle fees. The Unit also checks for Heavy Vehicle Use Tax suspensions. If a carrier has a suspension or unpaid obligations, the application will be rejected and returned to the carrier with an explanation. Unpaid court fines must be settled with the appropriate district court, not with the Bureau of Motor Vehicles. Non-IFTA carriers. Maine carriers who never leave the state and carriers from non-IFTA jurisdictions also are required to license qualified vehicles for fuel tax reporting. Record keeping requirements are the same as for IFTA carriers. Maine carriers who certify that all fuel is bought tax-paid in Maine may be excused from filing fuel tax returns. Maine-based intrastate carriers must provide their annual mileage for all qualified vehicles on their fuel decal application. Foreign carriers not in IFTA must license and make quarterly fuel tax reports or obtain fuel trip permits. Cancelled Accounts. You may cancel your IFTA account at any time. In order to cancel you account, you must:
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