proposed enhancements

Proposed Enhancements

September 20, 2006

• IFTA - Exemption Database (P1130)• Doug Shepherd (CA)

• IFTA - Annual Report (P1110) • Bill Kron (MS)

Proposed Enhancements

History: Assigned in January 2006 to APC Proposed changes drafted by APC

Next steps: Comments/discussion today Recommendations to IFTA Board in October Potential 2007 Ballots by IFTA Board & APC

Exemption DatabaseExemption Database• P1130 (Reporting Other Information) P1130 (Reporting Other Information)

– Every member jurisdiction shall advise Every member jurisdiction shall advise the repository of all changes regarding:the repository of all changes regarding:•Tax-exempt miles/kilometres; Tax-exempt miles/kilometres; •Non-taxable fuels;Non-taxable fuels;•Tax-exempt vehicles; or Tax-exempt vehicles; or •Any other changes affecting the Any other changes affecting the

administration of the Agreement.”administration of the Agreement.”

Note - All exemptions are based on reducing the total Note - All exemptions are based on reducing the total distance to establish total taxable distancedistance to establish total taxable distance

How To FindHow To Find

How To Edit - FuelHow To Edit - Fuel

How To Edit - DistanceHow To Edit - Distance

How To Edit - VehicleHow To Edit - Vehicle

How To Edit - OtherHow To Edit - Other

Finished Product - CA

Exemption DatabaseExemption Database Purpose:Purpose:

To To assist licensees complete tax returns and assist licensees complete tax returns and auditors verify non-taxable distancesauditors verify non-taxable distances

Current Concerns:Current Concerns: Many jurisdictions are not updating the Many jurisdictions are not updating the database database

29 jurisdictions have not entered 2006 data29 jurisdictions have not entered 2006 data Only 7,600 web hits in 2006 Only 7,600 web hits in 2006 (2.75% of licencee population)(2.75% of licencee population)

Information is difficult to find/understand Information is difficult to find/understand Most do not relate to QMVs Most do not relate to QMVs (e.g., antique trucks, non-highway (e.g., antique trucks, non-highway

vehicles, recreational vehicles, dyed fuel, fuel for home heating) vehicles, recreational vehicles, dyed fuel, fuel for home heating)

Don’t need four categories to reduce taxable distancesDon’t need four categories to reduce taxable distances

 Two Examples - BC

Two Examples – NY (1 of 2)

Two Examples – NY (2 of 2)

Two Examples - NYTwo Examples - NY• New York exempted vehicles include:   

– Road rollers, tractor cranes, truck cranes, power shovels, snow plows, road sweepers, sand spreaders, well drillers, road-building machines

– Vehicles operating on fixed rails or tracks – Vehicles operating under dealer or transporter

plates– Vehicles engaged exclusively in the

transportation of U.S. mail under contract

Two Examples - NY Two Examples - NY 

• New York exempted vehicles include: (cont.)  

– Vehicles operated by any government agency (e.g., Federal, state, county, town, or municipality)

– Vehicles owned and operated by farmers – Vehicles used exclusively to transport

household goods – Vehicles owned and operated by any fire

company or department – Buses when engaged in local transit service

Proposed Change Proposed Change • Reorganize into 3 parts: 

Part 1 - IFTA Return Adjustments Only (Mandatory)

Part 2 - Other Refunds/Exemptions Available to Carriers (Discretionary)

Part 3 - Notes (Discretionary)

Proposed Change – Part 1 Proposed Change – Part 1 • IFTA Return Adjustments Only (Mandatory)

– Only exemptions which reduce a carrier’s total taxable distance on their quarterly return:

• Exempt roads/toll roads• Trip permits• Vehicles meeting QMV definition but exempted by a

jurisdiction (e.g., government vehicles, buses, farm vehicles)

– Exclude:• Unregistered/non-highway vehicles and equipment

(e.g., locomotives, road building machines) • Vehicles which don’t meet QMV definition (e.g., fire

trucks, snowplows, mobile cranes, recreational vehicles, and others less than 26,000 lbs/11,797 kg)

Proposed Change – Part 2Proposed Change – Part 2• Other Refunds/Exemptions Available

Carriers (Discretionary)

– Refund opportunities for IFTA and non-IFTA carriers, which must be applied for through a refund application:

• Non-motive use of fuel (i.e. PTO, idle time) • Coloured fuel• Farm use• Alternative Motor Fuel

Proposed Change – Part 3

Notes (Discretionary)

A placeholder for jurisdictions to provide other relevant information:

Contact information Web addresses for application forms and/or additional refund informationSpecial Notices (e.g., Idaho – Native retail locations selling tax-out fuel)

Proposed Changes

Overall result: More user friendly for:

IFTA carriers or their tax preparers; andIFTA auditors

Allows IFTA carriers to quickly identify distance exemptionsAllows all carriers to identify other refund opportunitiesAllows jurisdictions a spot to provide other important information.

Proposed Changes

Questions/Comments

Annual Report

A Quick Reminder

History: Assigned in January 2006 to APC Proposed changes drafted by APC

Next steps: Comments/discussion today Recommendations to IFTA Board in October Potential 2007 Ballots by IFTA Board & APC

How To FindHow To Find

How To EditHow To Edit

How To EditHow To Edit

How To ViewHow To View

Finished Product - CA Finished Product - CA

Finished Product - CAFinished Product - CA

Finished Product - CAFinished Product - CA

Finished Product - All JurisdictionsFinished Product - All Jurisdictions

Title/PurposeTitle/Purpose

Title/PurposeTitle/Purpose

Title/PurposeTitle/Purpose

Title/PurposeTitle/Purpose

Title/PurposeTitle/Purpose

Annual Report Questions

• Does my jurisdiction use the information that is posted by the other jurisdiction?

• Does the public need to know the information in the report?

• Is there any requirement for the information to be available to the public?

Annual Report Questions

• Should the report be moved to a secure area on the website?

• Is there some information your jurisdiction could (and would) use from the other jurisdictions.

• What does your jurisdiction include in the number of accounts?

• When does your jurisdiction consider a license “cancelled”?

• What is the difference between suspended and revoked?

• What does your jurisdiction include in the number of accounts revoked?

• Would your jurisdiction find it helpful to know if a registration fee is changed for an IFTA license?

Annual Report Questions

• Number of accounts – include accounts that were active during all four quarters of the year

• Cancelled licenses – Include only accounts that have ceased interjurisdictional travel (closed)

• Suspended/Revoked – use both terms interchangeably and provide number of accounts revoked once, twice, or three times during a year

Recommendations

• Add two entries:• Does your jurisdiction charge a

registration fee?• Amount of registration fee.

Recommendations

POP QUIZPOP QUIZ

How many different How many different backgrounds were used in this backgrounds were used in this presentation?presentation?