1. ARE YOU IFTA/IRP QUALIFIED? CAROLYN EVANSTON ART FARLEY

2. 2 WHAT IS A QUALIFIED IFTA VEHICLE?  R245 Qualified Motor Vehicle means a motor vehicle used, designed, or maintained for transportation of persons or property and: .100 Having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or .200 Having three or more axles regardless of weight; or .300 Is used in combination, when the weight of such combination exceeds 26,000 pounds or 11,797 kilograms gross vehicle or registered gross vehicle weight. Qualified Motor Vehicle does not include recreational vehicles.

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4. 4 WHAT DOES REGISTERED MEAN IN IFTA?  R251 Registration means the qualification of motor vehicles normally associated with a prepayment of licensing fees for the privilege of using the highway and the issuance of license plate and a registration card or temporary registration containing owner and vehicle data.

5. 5 WHAT IS A RECREATIONAL VEHICLE IN IFTA?  R248 Recreational Vehicle means vehicles such as motor homes, pickup trucks with attached campers, and buses when used exclusively for personal pleasure by an individual. In order to qualify as a recreational vehicle, the vehicle shall not be used in connection with any business endeavor.

6. 6 WHAT IS AN IFTA LICENSE?  R150 ONE LICENSE AND ONE BASE JURISDICTION It is the purpose of this Agreement to establish and maintain the concept of one fuel use license and administering base jurisdiction for each licensee and to provide that a licensee's base jurisdiction will have the primary responsibility for administering this Agreement and executing its provisions with respect to such licensee.

7. 7 WHERE SHOULD I BASE FOR IFTA?  R212 Base Jurisdiction means the member jurisdiction where qualified motor vehicles are based for vehicle registration purposes and .100 Where the operational control and operational records of the licensee's qualified motor vehicles are maintained or can be made available; and .200 Where some travel is accrued by qualified motor vehicles within the fleet. The commissioners of two or more affected jurisdictions may allow a person to consolidate several fleets that would otherwise be based in two or more jurisdictions.

8. 8 THERE ARE ALWAYS IFTA EXCEPTIONS  R310 TRIP PERMITS In lieu of motor fuel tax licensing under this Agreement, persons may elect to satisfy motor fuels use tax obligations on a trip-by- trip basis.  R500 LESSORS/LESSEES AND HOUSEHOLD GOODS CARRIERS

9. 9 IFTA EXCEPTIONS CONTINUED  *R510 RENTAL/LEASING .100 Short-Term Leases. In the case of a short-term motor vehicle rental, by a lessor regularly engaged in the business of leasing, or renting motor vehicles without drivers, for compensation to licensees or other lessees of 29 days or less, the lessor will report and pay the fuel use tax unless the following two conditions are met: .005 The lessor has a written rental contract which designates the lessee as the party responsible for reporting and paying the fuel use tax; and .010 The lessor has a copy of the lessee’s IFTA fuel tax license which is valid for the term of the rental. .200 Long-Term Leases. A lessor regularly engaged in the business of leasing or renting motor vehicles without drivers for compensation to licensees or other lessees may be deemed to be the licensee, and such lessor may be issued a license if an application has been properly filed and approved by the base jurisdiction

10. 10 AND IFTA GOES ON AND ON……  *R520 HOUSEHOLD GOODS CARRIERS In the case of a household goods carrier using independent contractors, agents, or service representatives, under intermittent leases, the party liable for motor fuel use tax shall be: .100 The lessee (carrier) when the qualified motor vehicle is being operated under the lessee's jurisdictional operating authority. The base jurisdiction for purposes of this Agreement shall be the base jurisdiction of the lessee (carrier), regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor or lessee. .200 The lessor (independent contractor, agent, or service representative) when the qualified motor vehicle is being operated under the lessor's jurisdictional operating authority. The base jurisdiction for purposes of this Agreement shall be the base jurisdiction of the lessor, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes.

11. 11 OH MY THERE IS EVEN MORE IFTA RULES  R530 INDEPENDENT CONTRACTORS .100 Short-Term Leases. In the case of a carrier using independent contractors under short-term/trip leases of 29 days or less, the trip lessor will report and pay all fuel taxes. .200 Long-Term Leases. In the case of a carrier using independent contractors under long-term leases (30 days or more), the lessor and lessee will be given the option of designating which party will report and pay fuel use tax. In the absence of a written agreement or contract, or if the document is silent regarding responsibility for reporting and paying fuel use tax, the lessee will be responsible for reporting and paying fuel use tax. If the lessee (carrier) through a written agreement or contract assumes responsibility for reporting and paying fuel use taxes, the base jurisdiction for purposes of this Agreement shall be the base jurisdiction of the lessee, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor.  R540 FILING OF LEASES No member jurisdiction shall require the filing of such leases but such leases shall be made available upon request of any member (see IFTA Procedures Manual, Section P520).

12. 12 WHAT DOES AN IFTA LICENSE DO?  *R605 IDENTIFICATION REQUIREMENT The base jurisdiction shall issue a license and two decals per vehicle. The license and decals shall qualify the licensee to operate in all member jurisdictions without further licensing or identification requirements in regard to motor fuel use taxes.

13. 13 SO WHAT HAPPENS IF I DO NOT HAVE AN IFTA LICENSE?  *R660 NON-COMPLIANCE .100 Failure to possess a copy of the license in the vehicle may subject the vehicle operator to the purchase of a trip permit, a citation, or both. .200 Failure to display the identification decals in the required locations or to carry a temporary permit may subject the vehicle operator to the purchase of a trip permit, a citation, or both. .300 Improper uses of the license or the decals by the licensee may be cause for revocation of the license.

14. IRP LICENSEE To determine if an applicant is eligible for IRP registration the following must determined  Does the applicant operate apportionable vehicles?  Does the applicant have an established place of business in a member jurisdiction?  Can the applicant establish residence in a member jurisdiction? 14

15. 15 SO WHAT IS DIFFERENT IN IRP?  APPORTIONABLE VEHICLE  “Apportionable Vehicle” means (except as provided below) any Power Unit that is used or intended for use in two or more Member Jurisdictions and that is used for the transportation of persons for hire or designed, used, or maintained primarily for the transportation of property, and:  (i) has two Axles and a gross Vehicle weight or registered gross Vehicle weight in excess of 26,000 pounds (11,793.401 kilograms), or  (ii) has three or more Axles, regardless of weight, or  (iii) is used in combination, when the gross Vehicle weight of such combination exceeds 26,000 pounds (11,793.401 kilograms).

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17. 17 AND THE IRP RULES  A Vehicle is determined to be apportionable according to the characteristics and use of the Vehicle or the Combination of Vehicles. Trailing equipment, however, is only registered under the Plan pursuant to an approved Exception, unless it is registered under Section 910.  Certain types of vehicles or Combinations of Vehicles that travel or are intended to travel in two or more Member Jurisdictions, but are not otherwise within the definition of Apportionable Vehicle may be apportioned if the Registrant so chooses. Vehicles not apportioned are subject to registration and fee payment in accordance with each Base Jurisdiction’s general registration statutes. These non-apportionable Vehicles may be entitled to Reciprocity in other Jurisdictions under applicable Reciprocity Agreements.

18. 18 AND SO ON  The intent of the Registrant or Applicant to operate a Vehicle in two or more Member Jurisdictions is to be considered as an objective fact, determined from all the circumstances of the particular case. The fact that a Vehicle is not used in more than one Jurisdiction for the entirety of a Registration Year and for six additional months gives rise to a presumption that the Registrant did not intend to use the Vehicle in more than one Member Jurisdiction. Such a presumption may be overcome, however, by other circumstances presented by the Registrant.

19. 19 WHAT IS AN EXEMPT VEHICLE IN IRP?  A Recreational Vehicle, a Vehicle displaying Restricted Plates, a bus used in the transportation of chartered parties or a government-owned Vehicle, is not an Apportionable Vehicle; except that a Truck or Truck Tractor, or the Power Unit in a Combination of Vehicles having a gross Vehicle weight of 26,000 pounds (11,793.401 kilograms), or less, and a bus used in the transportation of chartered parties, nevertheless may be registered under the Plan at the option of the Registrant.

20. 20 WHAT IS BASE JURISDICTION IN IRP  BASE JURISDICTION  “Base Jurisdiction” means the Member Jurisdiction, selected in accordance with Section 305, to which an Applicant applies for apportioned registration under the Plan or the Member Jurisdiction that issues apportioned registration to a Registrant under the Plan.

21. 21 BASE JURISDICTION CONTINUED  305 SELECTION OF BASE JURISDICTION  (a) An Applicant may elect as its Base Jurisdiction any Member Jurisdiction (i) where the Applicant has an Established Place of Business, (ii) where the Fleet the Applicant seeks to register under the Plan accrues distance, and (iii) where Operational Records of the Fleet are maintained or can be made available.  (b) An Applicant that does not have an Established Place of Business in any Jurisdiction may designate as a Base Jurisdiction any Member Jurisdiction (i) where the Applicant can demonstrate Residence, (ii) where the Fleet the Applicant seeks to register under the Plan accrues distance, and (iii) where Operational Records of the Fleet are maintained or can be made available.

22. 22 AND MORE…..  (c) To establish Residence in a Member Jurisdiction, an Applicant must demonstrate to the satisfaction of the Member Jurisdiction at least three of the following: (i) If the Applicant is an individual, that his or her driver’s license is issued by that Jurisdiction, (ii) If the Applicant is a corporation, that it is incorporated or registered to conduct business as a foreign corporation in that Jurisdiction, (iii) If the Applicant is a corporation, that the principal owner is a resident of that Jurisdiction,  (iv) That the Applicant’s federal income tax returns have been filed from an address in that Jurisdiction, (v) that the Applicant has paid personal income taxes to that Jurisdiction, (vi) that the Applicant has paid real estate or personal property taxes to that Jurisdiction, (vii) that the Applicant receives utility bills in that Jurisdiction in its name, (viii) that the Applicant has a Vehicle titled in that Jurisdiction in its name, or ix) that other factors clearly evidence the Applicant’s legal Residence in that Jurisdiction.

23. 23 GUESS WHAT THERE IS MORE?  Official Commentary  If more than one Member Jurisdiction could qualify as a Base Jurisdiction for an Applicant, the Applicant may choose which of them it will apply to for apportioned registration under the Plan. This serves to preserve the necessary but limited flexibility in the choice of a Base Jurisdiction.  It is not the intent of this section to permit a Registrant to manipulate the selection of a Base Jurisdiction in order to avoid the payment of Apportionable Fees on the basis of 100 percent of the distance traveled by its Fleet.  This section provides a three-part test under subsection (a) for the determination of Base Jurisdiction. All three parts must be met in order for a Member Jurisdiction to qualify as a Base Jurisdiction.  The Plan offers Residence as an alternative criterion to Established Place of Business only for those Applicants who cannot demonstrate that they meet the Established Place of Business requirement.  With respect to the accrual by a Fleet of distance in the Base Jurisdiction, the requirement is to be applied only to the Fleet as a whole; each individual Vehicle of a Fleet need not enter the Base Jurisdiction.

24. 24 ESTABLISHED PLACE OF BUSINESS IN IRP  ESTABLISHED PLACE OF BUSINESS “Established Place of Business” means a physical structure located within the Base Jurisdiction that is owned or leased by the Applicant or Registrant and whose street address shall be specified by the Applicant or Registrant. This physical structure shall be open for business and shall be staffed during regular business hours by one or more persons employed by the Applicant or Registrant on a permanent basis (i.e., not an independent contractor) for the purpose of the general management of the Applicant’s or Registrant’s trucking-related business (i.e., not limited to credentialing, distance and fuel reporting, and answering telephone inquiries).

25. 25 MORE ESTABLISHED PLACE OF BUSINESS  The Applicant or Registrant need not have land line telephone service at the physical structure. Operational Records concerning the Fleet shall be maintained at this physical structure (unless such records are to be made available in accordance with the provisions of Section 1020). The Base Jurisdiction may accept information it deems pertinent to verify that an Applicant or Registrant has an Established Place of Business within the Base Jurisdiction.

26. HOUSEHOLD GOODS CARRIERS A Household Goods Carrier using an Apportioned Vehicle leased from a Service Representative may elect that the Base Jurisdiction for such vehicle be that of the Service Representative or that of the Household Goods Carrier  If based in the Service Representative jurisdiction, Vehicle is registered in name of Service Representative with the Household Goods Carrier shown as the Lessee  If based in the jurisdiction of the Household Goods Carrier, Vehicle is registered in name of Household Goods Carrier with the Service Representative shown as the Lessee 26

27. 27 AND, AND, AND.  PROPERLY REGISTERED VEHICLE “Properly Registered Vehicle” means a Vehicle which has been registered in full compliance with the laws of all Jurisdictions in which it is intended to operate.  REGISTRANT “Registrant” means a Person in whose name a Properly Registered Vehicle is registered.  RESIDENCE “Residence” means the status of an Applicant or a Registrant as a resident of a Member Jurisdiction.

28. 28 IN-JURISDICTION DISTANCE INTERJURISDICTION MOVEMENT VS. INTRAJURISDICTION MOVEMENT  IN-JURISDICTION DISTANCE “In-Jurisdiction Distance” means all of the distance operated during the Reporting Period or the distance estimated to be operated by a Fleet in a particular Member Jurisdiction for the Registration Year.  INTERJURISDICTION MOVEMENT “INTERJURISDICTION Movement” means Vehicle movement between or through two or more Jurisdictions.  INTRAJURISDICTION MOVEMENT “INTRAJURISDICTION Movement” means Vehicle movement from one point within a Jurisdiction to another point within the same Jurisdiction.

29. 29 SO WHAT DOES THIS ALL MEAN?  IN BOTH IRP AND IFTA YOU MUST TRAVEL IN TWO OR MORE JURISDICTIONS.  IN IFTA AND IRP REQUIRED APPORTIONABLE VEHICLES AND IFTA QUALIFIED VEHICLES HAVE A CGVW IN EXCESS OF 26,000 LBS OR 11,793 KGS OR THREE OR MORE AXLES REGARDLESS OF WEIGHT.  IN IFTA BASE JURISDICTION MEANS WHERE THE MEMBER QUALIFIED MOTOR VEHICLES ARE BASED FOR VEHICLE REGISTRATION PURPOSES.  IN IRP BASE JURISDICTION MEANS WHERE THE APPLICANT HAS AN ESTABLISHED PLACE OF BUSINESS.

30. 30 SO WE ARE NOT ALL THAT DIFFERENT.  IN THE END WE MAY DO THINGS DIFFERENT BUT BOTH IFTA AND IRP CONCEPTS ARE THE SAME. WHICH IS THE BASE JURISDICTION CONCEPT, THIS ALLOWS A LICENSEE/REGISTRANT TO REPORT MOTOR FUEL TAXES/REGISTRATIONS FEES TO A BASE JURISDICTION FOR DISTRIBUTION TO OTHER MEMBER JURISDICTIONS IN WHICH THE LICENSEE/REGISTRANT TRAVELED  SO WE MAY NOT BE IDENTICAL TWINS BUT WE ARE RELATED.