How to Set Up IFTA in South Dakota

To set up an International Fuel Tax Agreement (IFTA) account in South Dakota, motor carriers must register directly with the South Dakota Department of Revenue Motor Carrier Services division. Registration establishes South Dakota as your base jurisdiction for reporting motor fuel taxes across all 48 contiguous U.S. states and 10 Canadian provinces. South Dakota does not charge an initial application fee or a fee for annual decals, but you must operate qualified commercial motor vehicles with an established physical business presence in the state.

Determine Qualified Vehicle Status and Base Jurisdiction

South Dakota requires an IFTA license if your vehicle travels outside the state and meets specific weight or axle thresholds under South Dakota Codified Law Title 10. A qualified vehicle has two axles and a gross vehicle weight (GVW) or registered gross vehicle weight exceeding 26,000 pounds, has three or more axles regardless of weight, or is used in combination when the combined gross weight exceeds 26,000 pounds. To designate South Dakota as your base jurisdiction, your operational control and fleet mileage records must be maintained in or accessible to South Dakota, you must have qualified vehicles registered in the state, and you must log accrued mileage on South Dakota highways such as Interstate 90 or Interstate 29.

Gather Required Account Documentation

Before completing your paperwork, gather your active Federal Employer Identification Number (FEIN) issued by the IRS or your Social Security Number if operating as a sole proprietorship. You must have an active USDOT number registered with the Federal Motor Carrier Safety Administration (FMCSA) showing an authorized interstate operating status. Additionally, have your South Dakota Department of Revenue business tax license number (if applicable), proof of physical address in South Dakota (such as a utility bill, deed, or lease agreement; P.O. boxes are rejected), and your International Registration Plan (IRP) account number or vehicle registration cab cards.

Submit the South Dakota IFTA Application

Carriers can register by completing the South Dakota Application for International Fuel Tax Agreement (Form MV-IFTA-01) or by submitting the application online through the South Dakota DOR Motor Carrier portal. The application requests carrier ownership details, federal ID numbers, base jurisdiction verification, bulk fuel storage declarations, and vehicle fleet totals. South Dakota processes IFTA applications at no state charge for the license or original decals. Once processed, approval typically takes 5 to 10 business days for mail applications or 2 to 3 business days when submitted electronically.

Receive and Mount Decals and Display the Cab Card

Upon account approval, the Department of Revenue issues one annual IFTA carrier license (cab card) and two exterior decals for each qualified vehicle listed on your fleet schedule. Keep the original paper cab card or an authorized legible digital copy inside the vehicle cab at all times. Mount one decal on the lower exterior of each side of the tractor cab. IFTA credentials remain valid for one calendar year, running from January 1 through December 31, with a grace period extending through the end of February for carriers that have completed renewal filings before the December deadline.

Track Mileage and Fuel with DispatchTool

Tracking interstate miles manually across borders like South Dakota, Minnesota, Iowa, and Wyoming often causes calculation errors and audit penalties. DispatchTool automates your route tracking by capturing jurisdictional mileage and matching fuel receipts directly to state lines, producing IFTA-ready quarterly summaries that match the requirements of the South Dakota Department of Revenue. Create a DispatchTool account to simplify your compliance logging and speed up quarterly tax preparation.

Quarterly Tax Return Deadlines and Penalty Calculations

Every registered carrier must file a quarterly IFTA tax return (Form MV-IFTA-02) with South Dakota, even during quarters where the fleet traveled zero miles. Returns are due on the final day of the month following the close of the calendar quarter: April 30 for Q1 (Jan–Mar), July 31 for Q2 (Apr–Jun), October 31 for Q3 (Jul–Sep), and January 31 for Q4 (Oct–Dec). If a due date falls on a weekend or state holiday, the deadline moves to the next business day. Failure to file on time triggers a mandatory penalty of $50 or 10 percent of the total net tax liability, whichever is greater, alongside monthly interest set under IFTA rules.

Comply with IFTA Audit and Recordkeeping Mandates

IFTA, Inc. standards mandate that carriers retain all fuel tax records for at least four years from the quarterly filing due date. South Dakota DOR auditors inspect individual vehicle mileage records (IVMRs) including trip dates, origin and destination points, routes taken (such as US-14 or US-83), beginning and ending odometer readings, total trip miles, and jurisdictional breakdown miles. Fuel records must substantiate every credit claimed; receipts must show date of purchase, seller name and address, fuel type, number of gallons purchased, unit price, and the vehicle registration number.

Sources

South Dakota Department of Revenue - Motor Carrier Services (2025) — https://dor.sd.gov/businesses/taxes/motor-fuel-tax/ifta/ International Fuel Tax Association (IFTA, Inc.) (2025) — https://www.iftach.org/ Federal Motor Carrier Safety Administration (FMCSA) (2025) — https://www.fmcsa.dot.gov/registration

Frequently asked

How much does a South Dakota IFTA license and decal set cost?

South Dakota does not charge an application fee for an initial IFTA license, nor does it charge for original vehicle decals. Replacement decals or additional decals ordered later in the year may incur nominal administrative processing charges if requested outside normal renewal periods.

Can I operate through South Dakota without an IFTA license?

Yes, if you do not have an active IFTA account, you must purchase a 72-hour temporary fuel trip permit before entering South Dakota. Temporary fuel permits cost $20 and can be purchased online through the South Dakota Department of Revenue portal or through authorized permitting wire services.

What happens if I forget to file an IFTA return with zero miles?

Failing to file an IFTA return in South Dakota results in a flat $50 penalty even if your fleet ran zero miles during the quarter. Continued non-filing will lead to immediate account suspension and revocation of your credentials.

Are intrastate commercial trucks in South Dakota required to carry IFTA?

No, commercial trucks that operate exclusively within South Dakota boundaries are exempt from IFTA. Intrastate carriers pay fuel taxes directly at the pump and do not need to submit quarterly fuel tax distributions.

How long must I keep South Dakota IFTA mileage and fuel records?

You must retain all detailed trip logs, ELD distance reports, and fuel purchase receipts for 4 years from the quarterly filing date or the date the return was filed, whichever is later, in case of a Department of Revenue audit.