Current through Register Vol. 48, No. 38, September 20, 2024
a) Each
licensee shall maintain records to substantiate information reported on the
quarterly tax report. Records shall be preserved for a period of four years
from the due date of the return or the date filed, whichever is later. Records
may be kept on microfilm, microfiche, or other computerized or condensed record
storage system. Such records, for IFTA licensees, shall be made available upon
request of any member jurisdiction.
b) Non-compliance with any recordkeeping
requirement may be cause for revocation of the license.
c) Failure to provide records demanded for
the purpose of audit extends the statute of limitations until the records are
provided. Successive failures to adequately respond to a demand for records
relate back to the first demand.
d)
Bulk storage fuel purchases and withdrawals and over-the-road purchases are to
be accounted for separately.
e)
Fuel records shall contain the following items:
1) the date of each receipt of
fuel;
2) the name and address of
the person from whom purchased or received;
3) the number of gallons received;
4) the type of fuel; and
5) the vehicle or equipment into which the
fuel was placed.
f) All
licensees shall, in addition, maintain detailed distance records which show
operations on an individual-vehicle basis. Such records shall contain but not
be limited to:
1) both taxable and non-taxable
usage of fuel;
2) distance traveled
for taxable and non-taxable use; and
3) distance recaps for each vehicle for each
jurisdiction in which the vehicle operated.
The Individual Vehicle Mileage Record (IVMR) required by the
International Registration Plan is an acceptable source document for recording
vehicle distance information. Another acceptable source document is a trip
report which includes the information in subsection (f)(1)-(3), as well as the
date of trip (starting and ending), trip origin and destination (including city
and state), routes of travel, beginning and ending odometer readings, vehicle
unit number, vehicle fleet number and licensee's name.
g) On-Board Recording Devices.
On-board recording devices may (at the option of the carrier) be used in lieu
of or in addition to handwritten trip reports for fuel tax reporting. On-board
recording devices may be used alone or in conjunction with an electronic
computer system, or in conjunction with manual systems.
1) All recording devices used to generate
trip reports or used in conjunction with manual systems must meet the
requirements shown in subsections (g)(3) and (4) below. When the on-board
recording device is used in conjunction with an electronic computer system and
reports are prepared on the basis of data downloaded from the recording device,
the overall system must meet the requirements of subsections (g)(4), (5) and
(7).
2) Use of On-Board Recording
Device Only. When the device is to be used alone, printed reports must be
produced which replace the handwritten trip reports. The printed trip reports
shall be retained for audit. Vehicle and fleet summaries which show miles and
kilometers by jurisdiction must then be prepared manually.
3) Use of On-Board Recording Device in
Conjunction with Electronic Computer System. When the computer system is
designed to produce printed trip reports, vehicle and fleet summaries which
show miles and kilometers by jurisdiction must also be prepared. When the
printed trip reports will not be retained for audit, the system must have the
capability of producing, upon request, the reports indicated in subsection
(g)(7).
4) Minimum Device
Requirements. Minimum device requirements include the following:
A) The carrier must obtain a certificate from
the manufacturer certifying that the design of the on-board recording device
has been sufficiently tested to meet the requirements of this
provision.
B) The on-board
recording device and associated support systems must be, to the maximum extent
practicable, tamper proof and must not permit altering of the information
collected. Editing of copies of the original information collected will be
allowed, but all editing must be identified and both the edited and original
data must be recorded and retained.
C) The on-board recording device shall warn
the driver visually and/or audibly that the device has ceased to
function.
D) The device must time
and date stamp all data recorded.
E) The device must not allow data to be
overwritten before the data has been extracted. The device shall warn the
driver visually and/or audibly that the device's memory is full and can no
longer record data.
F) The device
must automatically update a life-to-date odometer when the vehicle is placed in
motion or the operator must enter the current vehicle odometer reading when the
on-board recording device is connected to the vehicle.
G) The device must provide a method for the
driver to confirm that the entered data is correct (e.g., a visual display of
the entered data that can be reviewed and edited by the driver before the data
is finally stored).
5)
Data collection. To obtain the information needed to verify fleet distance, to
prepare the "Individual Vehicle Distance Record(s)" (IVDR), and for fuel tax
purposes, the device must collect the following data on each trip:
A) date of trip (starting and
ending);
B) trip origin and
destination (location code is acceptable);
C) routes of travel;
D) beginning and ending odometer or
hubodometer reading of the trip;
E)
total trip distance;
F) distance by
jurisdiction;
G) power unit number
or vehicle identification number;
H) vehicle fleet number;
I) registrant's name;
J) driver ID or name;
K) intermediate trip stops;
L) date of purchase;
M) seller's name and address (vendor code
acceptable);
N) number of gallons
purchased;
O) fuel type (may be
referenced from vehicle file);
P)
price per gallon or total amount of sale (required only for purchases from
vendors);
Q) unit numbers;
and
R) purchaser's name (in the
case of lessee/lessor agreement, receipts will be accepted in either name,
provided a legal connection can be made to reporting party).
6) For purposes of bulk fuel tax,
the device must collect, in addition to the items in subsection (g)(5)(A)-(R),
the following data:
A) date of
withdrawal;
B) number of
gallons;
C) fuel type;
D) unit number; and
E) purchase and inventory records to
substantiate that tax was paid on all bulk purchases.
7) Capability of System to Produce Reports.
Generally speaking, the reports referred to in this subsection are not prepared
by the on-board recording device. Instead, these reports are prepared using an
electronic computer system which accepts data from the on-board recording
device. The system must be able to produce the following reports:
A) For each trip, an Individual Vehicle
Distance Record (IVDR) report that includes the information required in
subsection (g)(5) (Note: this report may be more than one page);
B) A report that indicates when the on-board
recording device was last calibrated and the calibration method used;
C) An exception report(s) that identifies all
edited data, omissions of required data (see subsection (g)(5)), system
failures, noncontinuous life-to-date odometer readings, travel to noncontiguous
states, and trips where the location of the beginning trip is not the location
of the previous trip;
D) A monthly,
quarterly, and annual summary of vehicle trips by vehicle number showing miles
or kilometers by jurisdiction;
E)
Monthly, quarterly, and annual trip summaries by fleet showing the number of
miles or kilometers by jurisdictions.
8) Carrier Responsibilities. All carriers
must observe the following requirements:
A)
It is the carrier's responsibility to recalibrate the on-board recording device
when tire size changes, the vehicle drive-train is modified, or any
modifications are made to the vehicle which affect the accuracy of the on-board
recording device. The device must be maintained and recalibrated in accordance
with the manufacturer's specifications. A record of recalibrations must be
retained for the audit retention period.
B) It is the carrier's responsibility to
assure its drivers are trained in the use of the computer system. Drivers shall
be required to note any failure of the on-board recording device and to prepare
manual trip reports of all subsequent trip information until the device is
again operational.
C) It is the
carrier's responsibility to maintain a second copy (back-up copy) of the
electronic files either electronically or in paper form for the audit retention
period.
D) It is the carrier's
responsibility to assure the entire record-keeping system meets the
requirements of the Department. It is suggested that the carrier contact the
Department's audit division for verification of audit compliance prior to
implementation.
