With the rising freight demand and increased rates across the country, there’s no better time to venture into the trucking business than the present. Unfortunately, getting started as a carrier does not come easy. Why is this so? Perhaps, this is because it involves a lot of planning and preparation. From creating a business plan to fulfilling all the legal requirements and everything in between. But don’t worry!  At TruckingOffice, we are committed to ensuring that you have a hassle-free experience with every endeavor, including IFTA and IRP.

Understanding IRP Alberta

The International Registration Plan (IRP) refers to a reciprocity agreement between the U.S. and several Canada provinces, of which Alberta is a member. It maximizes the use of highways and provides trucking entrepreneurs a one-stop process to pay for usage of roadways based on the total distance traveled in the member jurisdictions. The best bit about this plan is, you only need one IRP license plate and one cab card for each apportioned vehicle, even when you operate intra-jurisdictionally.

Is Alberta My Base Jurisdiction?

For you to use Alberta as your base jurisdiction, you’ll need to fulfill a minimum of three of the following;

  • Be a legal resident here
  • The vehicle is in your name
  • Have paid property tax in Alberta
  • Paid personal income taxes to Alberta
  • Have federal income tax returns submitted from an address in Alberta
  • Be registered or incorporated to perform business as a foreign corporation in Alberta

Eligible Motor Vehicles

Is your motor vehicle designed, used, or maintained for the transportation of property or persons for hire? If yes, then consider it qualified. That’s all? Of course not. It must also be used or intended for use in Alberta and at least one more member jurisdiction. More importantly, the motor vehicle must meet at least one of the following weight and size requirements:

  • Have two axles and a GVW in excess of 11,793 kilograms (26,000 pounds), or
  • Have a minimum of three axles regardless of weight, or
  • Be used in combination, with the GVW exceeding 11,793 kilograms (26,000 pounds).

Government-owned vehicles, recreational vehicles, or those displaying restricted plates are not required to have IRP license plates. Nevertheless, you (the registrant) may opt to register them under the plan if you deem it necessary.

If you and your vehicle qualify to use Alberta as your base, you are required to submit the applicable fees for apportionment in all jurisdictions together and at one time. The charges are determined by:

  • Vehicle information
  • Registers weight
  • Percentage of fleet distance

Alberta IRP Fees

The good thing is, paying Alberta IRP fees is pretty straightforward. Usually, you are provided with a Fee Notice as soon as your application is processed.  The Fee Notice shows a breakdown of the respective charges for each apportioned vehicle in your fleet. Once you submit the specified amounts (plus their service fees, of course), you are issued with a registration, validation tab, cab card, and plate if necessary. Fees at the subsequent IRP renewal are calculated based on the percentage of distance traveled within each member jurisdiction. Renewal fees could be anywhere between $500 to $3,000 per truck.

Need Help with IRP and IFTA? Look no Further Than TruckingOffice.

No doubt, handling IRP alongside other operations like sourcing deals and new clients can really weigh down on you. The deadlines can sneak up on you, and you are bound to make errors that can literally cost thousands. But, that doesn’t have to be the case if you take advantage of our trucking management solution. Call our offices today at (800) 253- 9647 or get a 30-day free trial here.