How Does IFTA Apply to Carriers Operating on Lease Agreements?

Generally, the owner of the vehicle is responsible for reporting and paying fuel taxes.

However, some lease agreements specify which party —the lessor (owner) or the lessee —will be responsible for reporting fuel taxes. The responsible party should obtain the IFTA license and file quarterly taxes.

No matter who obtains the IFTA license, the driver of an IFTA-licensed vehicle must carry a copy of the license and the vehicle must display IFTA decals.

We also recommend that a copy of the lease agreement be kept in the vehicle's cab.