IDEAS home Printed from https://ideas.repec.org/a/ntj/journl/v58y2005i3p591-603.html
   My bibliography  Save this article

Interstate Tax Coordination: Lessons From the International Fuel Tax Agreement

Author

Listed:
  • Denison, Dwight
  • Facer, Rex L. II

Abstract

A growing concern over lost sales tax revenue on remote sales transacted through the Internet has motivated many states to explore cooperative tax agreements for sales and use taxes. With the support of the National Governors Association (NGA) and the National Conference of State Legislatures (NCSL), an ambitious and controversial project known as the streamlined sales tax project (SSTP) has emerged to propose principles for sales tax coordination. While SSTP is currently center stage in tax cooperative agreements, another cooperative agreement, the International Fuel Tax Agreement (IFTA), was initiated over 20 years ago. The agreement has evolved significantly through the years and currently the 48 contiguous U.S. states and 10 Canadian provinces have signed the agreement. The purpose of this paper is to describe the history, background, and incentives that have led to IFTA's success. We show how the combination of improved tax administration and lower transaction costs play a critical role in the success of IFTA. Last, we identify lessons from IFTA that have relevance for other tax coordination agreements.

Suggested Citation

  • Denison, Dwight & Facer, Rex L. II, 2005. "Interstate Tax Coordination: Lessons From the International Fuel Tax Agreement," National Tax Journal, National Tax Association;National Tax Journal, vol. 58(3), pages 591-603, September.
    • Handle: RePEc:ntj:journl:v:58:y:2005:i:3:p:591-603
    DOI: 10.17310/ntj.2005.3.18
    as

    Download full text from publisher

    File URL: https://doi.org/10.17310/ntj.2005.3.18
    Download Restriction: Access is restricted to subscribers and members of the National Tax Association.
    File URL: https://doi.org/10.17310/ntj.2005.3.18
    Download Restriction: Access is restricted to subscribers and members of the National Tax Association.
    File URL: https://libkey.io/10.17310/ntj.2005.3.18?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mandell, Svante & Proost, Stef, 2016. "Why truck distance taxes are contagious and drive fuel taxes to the bottom," Journal of Urban Economics, Elsevier, vol. 93(C), pages 1-17.
    2. Marion, Justin & Muehlegger, Erich, 2018. "Tax compliance and fiscal externalities: Evidence from U.S. diesel taxation," Journal of Public Economics, Elsevier, vol. 160(C), pages 1-13.
    3. Rao, R. Kavita & Mukherjee, Sacchidananda, 2010. "Administration of GST: Can we Continue with Present Structures?," MPRA Paper 76446, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:58:y:2005:i:3:p:591-603. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: The University of Chicago Press (email available below). General contact details of provider: https://www.ntanet.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.