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 Database P1130 (Reporting Other Information) P1130 (Reporting Other Information) – Every member jurisdiction shall advise 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 administration of the Agreement.” Any other changes affecting the administration of the Agreement.” Note - All exemptions are based on reducing the total distance to establish total taxable distance

How To Find

How To Edit - Fuel

How To Edit - Distance

How To Edit - Vehicle

How To Edit - Other

Finished Product - CA

Exemption Database  Purpose:  To assist licensees complete tax returns and auditors verify non-taxable distances  Current Concerns:  Many jurisdictions are not updating the database  29 jurisdictions have not entered 2006 data  Only 7,600 web hits in 2006 (2.75% of licencee population)  Information is difficult to find/understand  Most do not relate to QMVs (e.g., antique trucks, non-highway vehicles, recreational vehicles, dyed fuel, fuel for home heating)  Don’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 - 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 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 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 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 information Special 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; and IFTA auditors Allows IFTA carriers to quickly identify distance exemptions Allows all carriers to identify other refund opportunities Allows 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 Find

How To Edit

How To View

Finished Product - CA

Finished Product - All Jurisdictions

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