Sales Tax and IFTA
We can also assist you with your sales tax. We know the specifics of these taxes and different jurisdictions charge different sales taxes, and states, counties, and municipalities may levy their own sales taxes.
Another important document for the transportation business is a fuel tax license. Carriers need an IFTA license if they’re based in a member state and operate across two or more member jurisdictions. Another consideration is the type of vehicle they use.
I and my team will help you to count and file your sales tax and IFTA.
Sales Tax in California
Sales tax isn’t collected by the federal government. Instead, it’s imposed by state and local governments.
Retailers engaged in business in California must register with the California Department of Tax and Fee Administration (CDTFA) and pay the state's sales tax, which applies to all retail sales of goods and merchandise except those sales specifically exempted by law.
The sales tax rate in a specific California location has three parts: the state tax rate, the local tax rate, and any district tax rate that may be in effect.
IFTA is the cooperative agreement between 48 states in the U.S. and 10 provinces in Canada. It allows inter-jurisdictional carriers to report and pay taxes for the fuel their vehicles consume across states using a single fuel tax license.
Carriers need an IFTA license if they’re based in a member state and operate across two or more member jurisdictions. Another consideration is the type of vehicle they use.
IFTA offers several advantages to interstate motor carriers who operate in two or more member states or provinces. Under IFTA, you will:
- Choose one IFTA-member state or province as a "base jurisdiction",
- Obtain a single fuel tax license for all of your qualified motor vehicles, authorizing them to travel in all IFTA jurisdictions; and
- File only one tax return each quarter with your base jurisdiction, reporting your fuel usage and mileage for all IFTA member states and provinces.
- Your fuel tax records will generally be audited only by your base jurisdiction.
IFTA tax calculations can be summarized in five simple steps:
1. Tracking miles you’ve traveled in each state
2. Adding fuel purchases
3. Calculating fuel consumed per state
4. Calculating taxes owed for each state and province
5. Putting it all together
A lot of customers have said this is when they do their books:
- they stay up late and lose sleep
- they waste their weekends and family time
- they scramble when taxes are due
Wouldn't it be great if you had help?
No more stress with your sales tax and IFTA. Now you can enjoy your night's rest and family time.