The Weight Distance Tax is a mileage tax for vehicles having a combined gross weight or licensed weight in excess of 59,999 pounds, excluding farm licensed vehicles. For each qualified vehicle operating upon the public highways within Kentucky, the weight distance tax is computed by the rate of $0.0285 (2.85 cents) per mile. Tax returns and remittance covering the taxes owed are due on the last day of the next calendar month following each quarter.
The Kentucky Intrastate Tax (KIT) is a fuel consumption tax as prescribed by KRS 138.660
. "KIT license" is defined as the Kentucky intrastate tax license issued by the Kentucky Transportation Cabinet to intrastate motor carriers subject to the taxes imposed by KRS 138.660(1) and (2). The laws governing KIT are found in KRS 138.665 through KRS 138.7291, and are supplemented by the following Administrative
Record Retention Requirements
Weight Distance (KYU)
All records, including driver's logs, shall be maintained for a period of five (5) years.
It is the responsibility of the taxpayer to maintain mileage information on each qualified motor vehicle. An acceptable source document to verify mileage is through the use of an "Individual Vehicle Mileage Record" (IVMR). IVMR's shall contain the following:
Date of Trip (starting and ending)
Trip Origin and Destination, along with intermediate stops (including both city and state)
Routes of Travel
Beginning and ending odometer or hubometer readings
Mileage by jurisdiction
In addition to IVMR's, taxpayer shall maintain monthly / quarterly mileage recaps and fuel receipts.
An alternative method to using IVMR's is to have a computer software program in place that routes trips and allocates miles to each jurisdiction. Supporting documentation to this system requires:
A monthly / quarterly recap showing the unit number
Date of trip
Origin and Destination (with intermediate stops)
Mileage for each jurisdiction
Note: If IVMR's are not maintained, DO NOT THROW AWAY DRIVER'S LOGS
All records, including driver's logs, shall be maintained for a period of four (4) years.
In addition to the normal records that an operating entity is required to maintain, a Kentucky IFTA and/or KIT Licensee is required to maintain the following records:
1. Over the Road Purchases
The licensee must maintain complete records of all fuel purchased, received, or used in the conduct of its business. Separate totals must be compiled for each fuel type: (Diesel/kerosene, Gasoline, Gasohol, Liquefied Petroleum Gas (LPG), and Compressed Natural Gas (CNG/LNG), and reported separately on your quarterly return. The fuel records must contain:
(a) the date of purchase
(b) the name and address of seller
(c) the number of gallons purchased
(d) the type of fuel purchased
(e) the price per gallon or liter, or total amount of sale
(f) the unit number of the vehicle or equipment into which the fuel was placed
(g) the purchaser's name (in the case of a lessee/lessor agreement, receipts will be accepted in either name, provided a legal connection can be made to the reporting party) and
(h) Quarterly fuel recaps for each qualified motor vehicle
Acceptable fuel receipts include an invoice, a credit card receipt, automated vendor generated invoice or transaction listing, or verifiable microfilm / microfiche. Receipts that contain alterations or erasures will not be accepted.
2. Bulk Fuel Purchases / Withdrawals
A licensee who maintains a bulk motor fuel storage facility may obtain credit for tax paid on fuel withdrawn from that storage facility. The following records should be maintained:
(a) date of withdrawal
(b) number of gallons or liters withdrawn
(c) fuel type
(d) vehicle unit number of the vehicle into which the fuel was placed
(e) purchase and inventory records to substantiate that tax was paid on all taxable fuel disbursements
Note: It is the licensee's responsibility to reconcile fuel purchases with the licensee's general ledger.
B. Mileage Records
The Kentucky IFTA Licensee is responsible for maintaining detailed distance records of all inter jurisdictional and intrastate operations of qualified motor vehicles. These detailed distance records must show operations on an individual vehicle basis. The licensee's records must support the information reported on the quarterly tax report. Mileage must be kept by fuel type. An acceptable source document is a trip report, which must include:
date of trip (starting and ending)
vehicle unit number and fleet number
distance traveled for taxable and non-taxable use
trip origin and destination (including city & state), with intermediate stop points
trip beginning and ending odometer readings
total trip miles or kilometers and
mileage by jurisdiction for each qualified motor vehicle;
Quarterly distance recaps for each qualified motor vehicle.
If driver's logs are the primary / source document for mileage records, they should be retained for the required 4 (four) year period.
As prescribed by 601 KAR 1:201
, "A taxpayer subject to an IFTA, KIT or KYU license who operates exclusively in intrastate commerce and for which all of the mileage traveled is taxable may choose to maintain quarterly odometer readings on an individual motor vehicle basis rather than the more detailed records..."
C. Record Retention Period
Adequate record keeping is vital for documenting your compliance and your claim for a refund or credit for tax-paid fuel. Every licensee must maintain records to substantiate information reported on the quarterly tax report. These records must be maintained for a period of 4 (four) years from the due date of the report or the date that the report was filed, whichever is later. Records must be made available upon request by any member jurisdiction. Failure to provide records demanded for the purpose of audit extends the statute of limitations until the records are provided.
D. Penalty for Failure to Maintain Records
Licensee shall retain the previously described records for a period of 4 (four) years from the date of filing the quarterly tax return. Non-compliance with any record keeping requirement may be cause for revoking the license, and the Division of Road Fund Audits may construct a fuel tax liability based on the best available information.