INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA DECAL SURVEY

2011 ANNUAL IFTA BUSINESS MEETINGAUGUST 2011

Virginia Beach, VA

Garry Hinkley (Maine)IFTA, Inc. Board of Trustees

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey• Purpose:

– To determine if there is any interest among jurisdictions in finding an alternative to displaying decals; and

– To determine under what circumstances, it might be possible to phase out decals

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey

• Article VI of the Agreement covers Licenses and Decals

• Section 625 requires the display of decals.– Decals are a low tech means of minimal

compliance with license requirements

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey

• BOT sponsored survey in May

– 42 Jurisdictions responded– Representing 170,500 IFTA accounts; and – 1.8M decals issued

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey

• Electronic Screening Systems for IFTA Enforcement - Respondents

– CVIEW: 24 jurisdictions (all states)• About 32 states sending IFTA data to SAFER

– IFTA CH: 24 jurisdictions (4 provinces)– Both: 15 jurisdictions– Other: 8 jurisdictions

• Such as NLETS; home grown or hybrid systems

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey• Does your Jurisdiction deny or suspend

other credentials (such as registration plates) for IFTA non-compliance?

• Yes – 28 (67%)

• No – 14 (33%)

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey• Advantages to Decals?

– Quick/easy visual compliance check• Minimum compliance threshold

– Low Tech solution• Not all law enforcement have computer access

Audit tool (# of decals approx. # of vehicles)– Inexpensive– Revenue Source

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey

• Disadvantages to Decals?– Inventory cost and control– Difficult for some licensees to administer– Doesn’t guarantee compliance– Fraud and black market item– Quality control (fading and peeling)– Hampers electronic renewal– Vestige of the Past

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey• If there were a reliable electronic system

that communicated IFTA compliance to the roadside, would your jurisdiction support repeal of decal requirements?

– Yes: 23 (55%)– No: 17 (40%)– No response 2

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey

• All/most jurisdictions and licensees should be electronic (before giving up decals)

• Need more scanning sites in more jurisdictions (transponder, LP readers)– Cost issues

• Link IFTA licenses to Registration plates• Uneven use of Identifier (USDOT#)• Require GPS/transponders• Replace lost decal revenue

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey

• Allow larger licensees to operate without decal display?

• Yes: 16 (38%)

• No: 24 (57%)

• NR: 2 (5%)

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey

• Pro:– If licensee information is uploaded to SAFER– Use transponders; smart tags etc.– If it reduces costs and is legal

• Cons:– Unfair; need to treat all carriers the same– Larger licensees not necessarily more

compliant

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey

• Conclusions:– Some support for finding a technological

option to decals; but decals still represent a low cost/low tech means of threshold enforcement.

• More than half of respondents might support decal alternative under certain circumstances

– Thanks to all who contributed.

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.

IFTA Decal Survey

• Questions and Comments?