Kentucky Fuel Tax Filing
Kentucky's fuel tax is one of the nation's lowest. The state is also one of only a few to link the fuel tax rate to the wholesale price of gas.
A fuel tax is a type of excise tax collected by state governments to pay for transportation-related projects. Usually, this money goes to roads and highways. It is one of the most common taxes that states collect. However, the way that these taxes are implemented varies widely among states. Some use a flat rate per gallon, while others tie their tax rates to the price of gas. Kentucky uses a variable rate system, which means that its tax is tied to the price of gasoline.
In order to file the IFTA fuel tax in Kentucky, you need to have a valid USDOT number and a fleet of qualified motor vehicles. These must be used in the conduct of your business and must not be owned by other parties. A valid Kentucky IFTA decal must be displayed on each qualifying vehicle. It must be located so that it is visible and the decal’s view cannot be obstructed by any part of the truck.
The Kentucky Intrastate Tax, or KIT, is a consumption tax that requires all Kentucky-based carriers with a vehicle weight greater than 26,000 pounds (or 10,000 if the vehicle has two axles) to pay a tax on fuel usage within the state. It is also a requirement to file quarterly fuel use reports with the Kentucky Cabinet for Transportation.
IFTA and KIT Licenses
Kentucky fuel taxes are imposed on interstate and intrastate trucking operations. Any carrier with a combined license weight of over 59,999 pounds must pay fuel tax on any trips into the state. This includes both KIT and IFTA permit holders. IFTA permits are valid for one year, and KIT permits are valid for 10 days at a time. Both permits must be displayed in the vehicle at all times.
IFTA and KIT licensees must submit a quarterly tax report to the Transportation Cabinet. The report must include the total number of gallons of fuel consumed, the number of miles traveled, and the amount of tax paid. A IFTA or KIT licensee must maintain records for a period of four years to substantiate the information on the report.
IFTA and KIT licensees can file their reports online through GTC. To file online, you must first register for a GTC account. You will need your USDOT number, company name and owner (or DBA if applicable), DOT number, and FEIN or SSN/EIN. You must also provide your mailing and physical addresses.
