Arkansas IFTA Information
Arkansas or otherwise known as the hot water state is 27th among the largest states in the U.S. and is home to nearly 3 million people. Arkansas requires you to complete the IFTA application and send it in to the Motor Fuel tax office to receive your license. Currently there are no fees or charges for IFTA license or decals.
State Requirements Arkansas IFTA Licensing
In 1983, the US government and members of the trucking industry joined forces to come up with a more efficient fuel tax collection/distribution process. After much trial and error, in 1986, the International Fuel Tax Agreement was adopted. The agreement allows each jurisdiction to be responsible for tax reporting, licensing, renewals, and audits. But, after all these years, the IFTA is still a work in progress. For that reason, the following information is provided to help truckers better understand IFTA Arkansas licensing requirements and ensure that they avoid any penalties.
According to IFTA guidelines, you must obtain a permit if you operate a vehicle that is involved in the transportation of persons or property and has:
- Two axles and a GVW that exceeds 26,000 pounds;
- Three or more axles regardless of the weight;
- Is used in combination and the weight of the combination exceeds 26,000 pounds.
You will also be required to obtain a license if you are based in a member jurisdiction and operate a qualified vehicle in two or more member jurisdictions. A photocopy of the original license must be in each vehicle, and a decal must be posted on each side of the cab of each vehicle.
Reporting fuel use taxes is relatively straightforward. You must file quarterly (four times a year) before the stipulated reporting date. Penalties for filing late can be as high as 10% of the net tax liability, or $50, whichever is greater. Taxes must be postmarked by midnight on the due dates below:
- 1st Quarter: (Jan – Mar) Due by April 30th
- 2nd Quarter: (Apr – Jun) Due by July 31st
- 3rd Quarter: (Jul – Sep) Due by October 31st
- 4th Quarter: (Oct – Dec) Due by January 31st
*If the due date falls on a Saturday, Sunday or legal holiday, the next business day is considered the tax reporting filing due date.
After filing, IFTA will send you IFTA stickers and IFTA permits via mail. Failure to file the quarterly fuel tax report can result in revocation of your IFTA license. Reinstating the license after a revocation involves posting bond and paying all delinquent taxes, penalties and interest. The Arkansas IFTA fuel tax form can be found here.
Renewing Your Arkansas IFTA License
All IFTA licenses are issued for one year from January 1st – December 31st. Carriers renewing their license are granted a two month IFTA sticker grace period (January and February) to display the renewed license and decals. During this grace period, a current or prior year IFTA license and decals must be displayed, or a valid, single-trip permit should be displayed. Failure to comply with these requirements can result in a citation or may require you to purchase a trip permit.
We understand that all these regulations and rules often leave truckers not sure what they should be doing and when. That is why we highly recommend a trucking management software that will help you stay compliant and out of trouble.
Benefits of a Trucking Management Software
Would you like to get rid of all the paperwork, gain control over your business and cash flow, and boost profits? We can help. At TruckingOffice, we have the skills and software that will organize every aspect of your trucking enterprise from filing reports, tracking mileage and fuel use, accounting, invoicing, and much more. We make filing your quarterly IFTA fuel taxes easy by keeping all of your information in one place. We track everything you need for IFTA including miles by state and fuel gallons by state. Your miles are calculated automatically using PC*Miler.
Contact TruckingOffice today to learn more about our services. We can help you get back to enjoying the freedom of the road!