LandstarOne® was created to be a one-stop business tool for every business capacity owner (BCO) leased to Landstar. Designed as a portal for all of Landstar’s exclusive mobile applications, the LandstarOne® app gives BCOs access to their LCAPP® fuel savings, the Landstar Maximizer® and Available Loads apps, a quick link to LandstarOnline.com, and is a source for news and information from Landstar.
When it comes to fuel savings and fuel tax charges, the LandstarOne® app helps BCOs make better business decisions in each state they purchase fuel. The fuel feature gives real-time data on fuel prices, automatically keeping tax rates up to date. The app allows BCOs to see LCAPP fuel savings net of the state credit rate for gallons purchased for every state within the International Fuel Tax Agreement (IFTA) tax matrix.
IFTA is an agreement between 48 states in the U.S. and 10 Canadian provinces to simplify the reporting of fuel use by motor carriers operating in more than one jurisdiction. Some states have higher fuel tax rates than others. Because of this, owner operators may decide to over purchase in a higher tax state to help carry them through a lower tax rate state.
For example, when fuel is purchased in “State A,” which has a lower tax rate, then an owner-operator drives through “State B,” which has a higher fuel tax, and fuel is not purchased in the higher tax state, the owner-operator may have to pay into IFTA.
On the other hand, when fuel is purchased in the higher tax “State B” and the owner-operator drives through lower tax “State A,” without purchasing fuel, the owner-operator has paid a higher fuel tax that could cover the cost of “State A’s” share of the taxes if enough fuel was purchased in “State B.” You receive credit by the state on each gallon of fuel purchased from that state. That money is then used to pay the taxes owed – those taxes are determined by miles traveled and the truck’s miles per gallon (MPG).
While IFTA has made paying fuel taxes more efficient, understanding the agreement and the additional costs that can occur may be confusing. LandstarOne® removes that confusion. The app takes the IFTA credit out of the pump price and shows BCOs their true net cost for fuel. BCOs have to pay the tax based on MPG and miles traveled, so by separating the cost of the fuel from the tax the app takes IFTA out of the equation when pricing fuel.
By incorporating the IFTA credit within the LandstarOne® fuel data, the app information allows BCOs to create better fuel savings plans that will positively impact their bottom lines.
Understanding the International Fuel Tax Agreement (IFTA)
The International Fuel Tax Agreement (IFTA) simplifies the system of fuel taxes by collecting all taxes from one location to distribute to states and provinces. Taxes are thus collected based on where the fuel is used, not where it is purchased. IFTA includes 48 states and 10 Canadian provinces.
There are special situations in certain states that owner-operators should be aware of when it comes to understanding their fuel tax charges.
- Kentucky and Virginia keep a portion of the money they collect, if fuel is purchased in these states.
- Oregon does not participate in IFTA. Therefore no credit is given on fuel purchased in this state. Oregon also does not charge a state rate tax for fuel used in the state.
- Hawaii does not participate in IFTA due to its island location recommended best business practices in Hawaii are to enjoy the beaches and the view!
LandstarOne® is available for download for iPhones or Android. For more information about the LandstarOne® mobile app, email LandstarOne@Landstar.com.
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