The International Registration Plan (IRP) is a reciprocity agreement between different member jurisdictions in the U.S. and Canada that allows for payments of apportionable fees based on the miles you travel in each jurisdiction. These fees are in addition to the taxes paid on fuel each quarter (see IFTA). Essentially, IFTA focuses on fuel and IRP focuses on miles run in each state.
Who does it apply to?
Like IFTA, IRP is required for vehicles that travel across state lines and exceed 26,000 pounds gross vehicle weight or have 3 or more axles. An apportioned vehicle registration means there are fees that are paid in each state and/or province where the apportioned vehicle operates. The fees are proportional to the number of miles a vehicle logs in each area or jurisdiction.
Where do I register?
You can apply for IRP registration at a Department of Motor Vehicle (also known as DMV, Secretary of State office, Department of State, or Department of Public Safety) or online in your base jurisdiction. Your base jurisdiction is the state in which your vehicle is registered. The setup process involves an application, proof of residency (you may have to show proof with your company name if LLC/Corporation), submitting documentation such as your 2290, and paying the registration fee. IRP fees vary depending on the jurisdiction, vehicle weight, percent of miles traveled in an IRP jurisdiction, and so on. On average, most jurisdictions charge between $1500-2000 for an 80,000 lb vehicle to register. The required forms are typically available on your state’s website to download to prepare ahead of your appointment.
I registered for IRP, so now what?
You will need to register for IFTA to account for any taxes on fuel. Once you are registered with IFTA and IRP, you will receive the Apportioned License Plate for the vehicle plus an Apportioned Cab Card. The card identifies the jurisdictions you are registered to operate in. IFTA provides a separate set of decals and licenses. You must keep track of all miles traveled in each jurisdiction. Recording and reporting take time, but it’s important to be thorough and efficient. You can keep track of all miles manually, using our mile tracking spreadsheet, or exporting mileage reports from your ELD.
How do I pay taxes for IRP? When do I report and renew IRP?
After registering for IRP in your base jurisdiction, you will be responsible for submitting an annual mileage report for each jurisdiction you have traveled in. IRP fees are based on the percentage of total distance traveled in each jurisdiction and fees will vary for each jurisdiction. Let’s look at an example below:
This last year you traveled through 4 jurisdictions totaling 105,000 miles. The table below is the summary of miles you traveled in each jurisdiction pulled from your ELD or mileage tracking sheet. It’s important to note that for auditing purposes you must also maintain your daily trip reports! Most jurisdictions require records to be retained for 4-5 years for auditing purposes.
The example shows that the fee is based on the percentage of the total distance. To explain further, if the example had a total of 50,000 miles instead of 105,000 miles BUT the percentage of miles remained the same (Wisconsin 29%, Indiana 24%, etc.) then the apportioned fee would remain the same!
Renewing IRP can typically be accomplished via mail or online in most jurisdictions. To find out more about your IRP rules and processes we recommend visiting your jurisdiction’s Secretary of State (SoS) or Department of Motor Vehicle (DMV) website. Each jurisdiction will provide a reporting date range for the year when renewing your IRP. For example, in Michigan, if the first month of your registration year is November 2023 through September 2024, then you will report from July 1, 2022 to June 30, 2023. Again, this information should be available on your jurisdiction’s website.
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Soshaul Logistics LLC and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. It is meant to serve as a guide and information only and Soshaul Logistics, LLC - Copyright 2023 - does not assume responsibility for any omissions, errors, or ambiguity contained herein. You should consult your own tax, legal and accounting advisors before engaging in any transaction or operation.