Petroleum Tax IFTA Report
When your company files quarterly IFTA (International Fuel Tax Agreement) reports, you should use these reports to figure out the amount of gallons to claim on your Form PDR-1, Minnesota Motor Fuel Claim for Refund.
There are two basic rules for doing this:
- If Column 10 on your IFTA report is negative ( ), then use the smaller gallon amount from Columns 5 and 6.
- If Column 10 on your IFTA report is positive, then use the larger gallon amount from Columns 5 and 6.
*Column 5 is Taxable Gallons, Column 6 is Tax Paid Gallons, and Column 10 is Total
If you are filing a Form PDR-1PTO, Power Take-off Worksheet and you have more than one type of equipment, you must break the different types of equipment apart.
The following tables are examples of the breakdown.
Example 1
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Rate | Total Miles | Taxable Miles | Taxable Gallons | Tax Paid Gallons | Net Tax | Tax | Int | Total | |
| MN | 0.2850 | 39,328 | 39,328 | 7,035 | 3,038 | 3,997 | $1,139.15 | $0.00 | $1,139.15 |
| WI | 0.3290 | 9,830 | 9,830 | 1,758 | 5,762 | -4,004 | ($1,317.32) | $0.00 | ($1,317.32) |
| Total | 0.0000 | 49,158 | 49,158 | 8,793 | 8,800 | -7 | ($178.17) | $0.00 | ($178.17) |
Assuming this is your IFTA return and you only have one type of qualifying equipment , and no unqualified equipment, you would start by looking at the MN line. Since Column 10 is positive you would use the larger of Column 5 and 6, which would be Column 5 in this case. You would then put 7,035 on you PDR-1PTO form in Column A next to the corresponding type of PTO equipment.
If this was your IFTA return and you have MORE than one type of equipment, or some equipment that does not qualify, you would need to break it apart. Please see the example below.
Example 2
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Rate | Total Miles | Taxable Miles | Taxable Gallons | Tax Paid Gallons | Net Tax | Tax | Int | Total | |
| MN | 0.2850 | 28,769 | 28,769 | 5,147 | 2,279 | 2,868 | $817.24 | $0.00 | $817.24 |
| WI | 0.3290 | 5,093 | 5,093 | 911 | 4,033 | -3,122 | ($1,027.11) | $0.00 | ($1,027.11) |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Rate | Total Miles | Taxable Miles | Taxable Gallons | Tax Paid Gallons | Net Tax | Tax | Int | Total | |
| MN | 0.2850 | 10,559 | 10,559 | 1,888 | 759 | 1,129 | $321.77 | $0.00 | $321.77 |
| WI | 0.3290 | 4,737 | 4,737 | 847 | 1,729 | -822 | ($290.04) | $0.00 | ($290.04) |
In this case you would look at the MN lines and follow the same procedures. So for the Ready Mix Concrete Trucks, the amount to be listed on your PDR-1PTO (PTO Worksheet) in Column A would be 5,147. The amount for the Tank Transport that should be placed on the PTO worksheet should be 1,888.
NOTE: If you use an IFTA report to fill out your Minnesota Motor Fuel Claim for Refund you can file the refund claim on a quarterly basis, rather than monthly. This is due to the IFTA reports being issued on a quarterly basis.
