IFTA Fuel Tax Compliance in North Dakota

The International Fuel Tax Agreement (IFTA) is a tax collection agreement for motor carriers operating in North Dakota and other member jurisdictions. Carriers based in North Dakota that operate qualified motor vehicles across state lines must register with the North Dakota Department of Transportation (NDDOT) to obtain an IFTA license and decals. A qualified vehicle is one that has three or more axles regardless of weight, or has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds. North Dakota uses this system to redistribute fuel taxes based on the actual miles driven within the state versus the amount of tax-paid fuel purchased locally. Filing requirements are strict, necessitating quarterly reports even if no miles were traveled outside the state during the period. Failure to submit these reports by the deadline results in a penalty of $50 or 10% of the tax due, whichever is greater. DispatchTool helps owner-operators simplify this process by automatically tracking miles by state and consolidating fuel purchase data for North Dakota filings. Carriers can use these automated logs to ensure their IFTA returns are based on precise GPS-verified distance data rather than manual estimations. Create a DispatchTool account to start managing your North Dakota IFTA records electronically.

Registration and Licensing with NDDOT

To register for IFTA in North Dakota, carriers must have an established place of business in the state and maintain their operational records there. The application is submitted to the North Dakota Department of Transportation Motor Carrier Services. Unlike many other states, North Dakota does not charge a fee for the IFTA license or for the initial set of two decals per vehicle. Licenses are valid for one calendar year, expiring on December 31. Carriers must carry a photocopy of the license in the cab of each vehicle and display one decal on each side of the exterior of the cab.

Quarterly Filing Deadlines and Procedures

North Dakota IFTA returns are due on the last day of the month following the close of the quarter. For the first quarter ending March 31, the deadline is April 30. The second quarter ending June 30 is due July 31. The third quarter ending September 30 is due October 31, and the fourth quarter ending December 31 is due January 31. If the deadline falls on a weekend or state holiday, the return is considered timely if postmarked by the next business day. All carriers are encouraged to file electronically through the NDDOT CVISN/TAP portal to ensure immediate confirmation of receipt.

North Dakota Fuel Tax Rates and Surcharges

As of 2024, the North Dakota state fuel tax rate for both gasoline and diesel is $0.23 per gallon. Unlike some neighboring jurisdictions like Kentucky or Indiana, North Dakota does not currently apply an additional fuel surcharge on top of the base tax rate. However, when filing the IFTA-100 form, North Dakota carriers must calculate the net tax due or credit by comparing the North Dakota rate against the rates of other states traveled. For example, if a driver travels in Minnesota, where the diesel rate is $0.285 per gallon, the carrier will owe the $0.055 difference for every gallon consumed in that state if the fuel was purchased in North Dakota.

Record Keeping and Audit Requirements

The NDDOT requires carriers to maintain detailed records for four years from the filing date or the due date of the return, whichever is later. These records must include Individual Vehicle Mileage Records (IVMRs) that document the date of trip, trip origin and destination, routes of travel, total trip miles, and miles by jurisdiction. Fuel records must include original receipts or invoices showing the number of gallons purchased, the type of fuel, the price per gallon, and the location of the purchase. According to IFTA Articles of Agreement, 3% of the North Dakota licensee base is audited annually to ensure compliance with these record-keeping standards.

Exemptions and Non-IFTA Miles

North Dakota recognizes specific exemptions for certain vehicle types and operations. Vehicles owned by the United States government, the State of North Dakota, or any political subdivision are exempt from IFTA requirements. Additionally, miles traveled on private roads are not taxable under IFTA in North Dakota, provided the carrier maintains documentation to prove the mileage occurred on non-public ways. However, carriers must still report 'total miles' which includes these exempt miles, and then subtract them to reach the 'taxable miles' figure on the quarterly return.

Penalties for Non-Compliance

Failure to file a return, filing late, or underpaying taxes due will result in penalties and interest. North Dakota imposes a late filing penalty of $50 or 10% of the total tax liability, whichever is greater. Interest is assessed on all delinquent taxes at a rate of 1% per month or fraction thereof. Furthermore, NDDOT may revoke an IFTA license if a carrier fails to file two or more consecutive quarterly returns or fails to pay a tax liability. Operating with a revoked license can result in roadside citations and the impounding of the vehicle until all debts are cleared.

Sources

North Dakota Department of Transportation (2024) — https://www.dot.nd.gov/divisions/mv/motorcarrier.htm IFTA, Inc. North Dakota Profile (2025) — https://www.iftach.org/ North Dakota Century Code § 57-43.1 (2023) — https://www.ndlegis.gov/cencode/t57c43-1.pdf

Frequently asked

What is the weight threshold for IFTA in North Dakota?

Vehicles must be registered for IFTA if they exceed 26,000 pounds gross vehicle weight or have three or more axles regardless of weight.

How much does it cost to get IFTA decals in North Dakota?

North Dakota is one of the few states that provides IFTA decals and licenses at no cost to the carrier as of the 2024-2025 period.

Can I file my North Dakota IFTA return by mail?

Yes, paper returns are accepted, but NDDOT prefers electronic filing via the CVISN portal to reduce processing times and errors.

What happens if I don't leave North Dakota during a quarter?

You must still file a 'zero-mileage' or 'in-state only' return to maintain your IFTA license in good standing.

How long should I keep my fuel receipts?

You must keep all fuel receipts and mileage records for a minimum of 4 years to comply with NDDOT audit requirements.