Document Type

Article

Publication Date

Winter 2012

Publication Title

Journal of Public Budgeting, Accounting & Financial Management

Volume

24

Issue

4

Pages

535-557

Abstract

The International Fuel Tax Agreement (IFTA) was established to reduce the complexities of reporting, allocating, and collecting diesel fuel taxes from interstate commercial carriers operating in multiple jurisdictions. This paper examines IFTA's effectiveness as a multistate tax administration model from the perspective of the states. We identify three criteria of effectiveness and use a survey of IFTA officials in the member states and provinces as well as additional data provided by IFTA, Inc to assess IFTA's effectiveness. We conclude that (1) IFTA promotes inter-jurisdictional cooperation and revenue transfers; (2) carriers do not locate disproportionately in low tax jurisdictions; and (3) IFTA's audit system, which relies on carrier record-keeping, may not be effectively preventing tax evasion. [ABSTRACT FROM AUTHOR]

Comments

Available with permission from PR Academic Press.

ORCID

0000-0003-3599-1417 (Yusuf), 0000-0002-3727-3016 (O'Connell)

Original Publication Citation

Yusuf, J.-E., & O'Connell, L. (2012). How effective is the international fuel tax agreement as a multistate tax administration model? A view from the states. Journal of Public Budgeting, Accounting & Financial Management, 24(4), 535-557.

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