IRP/IFTA: Your Roadmap to Arizona Trucking Compliance

IRP/IFTA are crucial programs for Arizona truckers, simplifying vehicle registration across jurisdictions in multiple states.

IRP (International Registration Plan) and IFTA (International Fuel Tax Agreement) are cooperative programs for commercial vehicles operating across multiple states. These programs streamline vehicle registration and taxation processes, making it easier and more cost-effective for businesses involved in interstate trucking. IRP focuses on vehicle registration, while IFTA concerns fuel tax reporting.

IRP: International Registration Plan

Often referred to as “apportioned” or “pro-rated” registration, IRP allows commercial vehicle operators to pay registration fees based on the percentage of highway mileage traveled in each state. This approach significantly reduces registration expenses, making it a preferred choice for businesses that have a presence in multiple states.

IFTA: International Fuel Tax Agreement

IFTA simplifies fuel tax reporting for commercial vehicles operating in multiple jurisdictions. Under IFTA, operators submit a single fuel tax report covering all the states they operate in. This report accounts for the fuel purchased and miles traveled in each state, and the taxes owed are then distributed to the appropriate states. This process eliminates the need to file separate fuel tax reports for each state, saving time and reducing administrative burdens.

Should You Register for an IRP/IFTA?

Determining whether you need to register for an IRP and IFTA account depends on the nature of your commercial trucking operations:

  1. You Operate Across Multiple States – If your commercial vehicles operate in more than one U.S. state or Canadian province, you are likely a candidate for IRP and IFTA registration. These will simplify registration and fuel tax reporting for interstate and international operations.
  2. You Want to Reduce Expenses – Registering under IRP can lead to significant cost savings. If you want to pay registration fees based on the mileage traveled in each state, rather than paying full fees in each state separately, IRP registration is a smart choice.

Arizona Requirements for IRP/IFTA Registration

To register your commercial vehicles under IRP/IFTA in Arizona, you will need to meet several requirements. Here are some general requirements:

  1. Business Entity: Typically, you need to be a registered business entity, such as a Limited Liability Company (LLC) or Corporation, to apply for IRP/IFTA registration. Ensure your business is legally established before the registration process.
  2. Business Presence: A physical business location and address in Arizona where your business operates from.
  3. USDOT Number: Companies transporting passengers or cargo across state lines must register with the Federal Motor Carrier Safety Administration (FMCSA) and obtain a USDOT Number. Intrastate hazardous materials carriers needing a safety permit must also register. A USDOT Number is a distinctive identifier used to collect and monitor a company’s safety information obtained during audits, reviews, investigations, and inspections.
  4. Obtain MC Authority: You may need to obtain a Motor Carrier Authority (MC Authority) from the Federal Motor Carrier Safety Administration (FMCSA) to operate as a for-hire motor carrier. This authority is essential for interstate operations.
  5. Bonds and Insurance: In Arizona, you must provide proof of bonds or insurance coverage as part of the registration process. These requirements are in place to ensure financial responsibility and compliance with safety regulations.

How We Can Help

Succeeding in the commercial trucking industry means understanding and following complex interstate rules. Our dedicated team is here to make sure you meet both state and federal standards for a safe and lawful operation. We’ve got your back on this journey.

Contact us today to learn how we can keep your commercial trucking business running smoothly across state lines.

Frequently asked questions

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The International Registration Plan, often termed as “apportioned” or “prorated” registrations, is a plan that allows commercial vehicle operators to save money on registration fees if their vehicles operate in two or more states. Under the IRP, trucking companies pay pro-rated fees based on the portion of highway mileage traveled in each participating state, potentially offering substantial savings compared to paying full registration fees in each state.

The IRP calculates fees based on the percentage of highway mileage your commercial vehicle travels in each state. This means you only pay for the proportion of road usage in each state, resulting in a significant reduction in registration expenses compared to paying full fees in each state separately.

While the specific requirements can vary by jurisdiction, generally, to qualify for an IFTA account, you need to have a vehicle that is 1) used for transporting goods or passengers (for someone else) 2) has two (2) axles and a gross vehicle weight (GVW) exceeding 26,000lb, or has three (3) or more axles regardless of weight, or is used in combination and has a combined weight exceeding 26,000lb. 3) Operates in two or more states

The International Fuel Tax Agreement (IFTA) is a cooperative agreement between the 48 contiguous states in the US and 10 Canadian provinces to simplify fuel use reporting by motor carriers operating in multiple jurisdictions. Setting up an IFTA account allows you to report and pay taxes on the fuel usage across states/provinces through a single report, helping to streamline the administrative process and ensure compliance with interstate fuel tax laws.

Yes, our team can assist you not only with the initial account setup but also with the ongoing management and maintenance to ensure that your account remains in compliance.