Motor Carrier Fuel Tax – Intrastate Fuel Tax License
What Is Motor Carrier Fuel Tax?
Motor Carrier Fuel Tax (MCFT) is a tax that is calculated on the fuel purchased and put in your vehicle (semi, box truck, dump truck, or even the world’s largest hot dog cart) that drives only in Indiana. This tax primarily pays for road and bridge repairs that local and state roads need. Businesses with these types of vehicles must register to get an Intrastate (MCFT) Fuel Tax License with the Indiana Department of Revenue.
Who needs to know about this?
If you are based out of Indiana and drive ONLY in Indiana with a vehicle (or that world-record-setting hot dog cart) that matches any of the following criteria, you might need an intrastate (MCFT) Fuel Tax Account:
- It has more than two axles; or
- It has a gross vehicle rating (or license plate weight) greater than 26,000 lbs. by itself; or
- It’s towing a trailer that, when added together with the power unit, has a combined gross vehicle rating (or license plate weight) greater than 26,000 lbs.
What/who are the exceptions?
Some vehicles are not required to register for MCFT tax. These include personal-use RVs (motor homes, campers, and travel trailers), farm-plated vehicles used for 100% private use only in Indiana, and vehicles that still are being driven by the dealer on their dealer plates.
Now, if your big rig is leaving Indiana, you will want to check out the International Fuel Tax Agreement (IFTA) section in this tutorial.
What do I do next?
Complete an MCFT-1A Registration Application. Otherwise, you could end up along the side of the road with your flashers on.
Things to Remember
- Once you get your MCFT account set up by filing that MCFT-1A, you will be sent your very own Intrastate (MCFT) Fuel Tax License Cab Card and MCFT Compliance Decal. Be sure to put a copy of the MCFT license in each vehicle and stick the decal on the driver’s side of any truck that meets the MCFT requirements.
- You will need to keep track of the fuel purchased for and the miles driven by each of your vehicles in Indiana. Make sure all those receipts and trip tickets get back to the office for safe keeping.
- Your MCFT license can be revoked for not filing or paying tax liabilities or not complying with other MCFT requirements.
- If you have a dump truck, a super sucker, an auxiliary power unit (APU), or other equipment that is operated from the same fuel tank as your engine, you may want to look into the Proportional Use (Fuel) Tax Credit. For more information about this credit, click here.
To see or print a complete MCFT checklist, click here.