REGIONAL ISSUES 2009 Discussions including 2007 & 2008 Findings and Issues

1. REGIONAL ISSUES2009 Discussions including2007 & 2008Findings and Issues

2. REGIONAL ISSUES • Overview: • An opportunity to breakout into geographic regions to: • Meet sit down with your jurisdiction’s neighbours • Identify /discuss similar issues/problems and potential solutions • An opportunity to then share regional issues/solutions with the entire group (select a presenter) • A brief recap of the issues/discussions from last year and ask for examples of implemented solutions • Timelines: • 75 minutes for regional discussion • 15 minutes for coffee • 45 minutes for group discussion to present individual findings and issues to the entire group

3. REGIONS / JURISDICTIONS

4. Midwest Region – 2009 Recap System Developments • New Systems • Unpaid Returns and collections • Unsigned returns • Manual report errors – rejects • 30-day decal • Extra decals • How to audit decals • US DOT #’s • Can you have two decals on your truck and who reports • Checking serial #’s on decals • No decals/barcode readers/license plate readers/transponders but what about visual effect and

5. Midwest Continued • Trip Permits • Integrating Tax Databases • XML for IFTA tax returns • IA has enforcement officer in the office • Web-based online concerns – many transactions are offered online and what is the affect • Placement of decals • Exemptions

6. Southeast Region – 2009 Recap • Dealing with settlements on large audits. • Importance of communication between management and law enforcement. • Leased vehicles using another companies DOT #. • Checking the # of decals order against the # of vehicles registered. • Communicating information on vehicles found with dyed fuel to their base jurisdiction. • Dealing with revoked carriers setting up new accounts under different SS #’s / Fed ID #’s. • Auditing fuel tax refund. • IFTA contractors with operations on military bases may be getting non-tax paid fuel. • Non-military aircraft repair facilities disposal of fuel taken out of aircraft.

7. Western Region - 2008 • Carriers and civilian vehicles going to Mexico to purchase cheaper fuel and bringing the fuel back across the border – not caring about tax, safety and environmental concerns. • Canada same issues • Carriers from Wyoming not actually based there due to not sales tax on commercial vehicles

8. Western Region - 2008 • Two tiered taxes in Arizona between the heavy vehicles and the light vehicles. • Arizona stopping carriers without both decals and license, being told by the carriers that other jurisdictions have approved them. • Other jurisdictions not honoring grace period for qualified carriers.

9. Midwest Region – 2008 • Closing Accounts - If middle of year-what to do… - Affidavits, return credentials, etc - Unused decals and pieces of used ones • Revoked Carriers - Notification to other jurisdictions-no response - Important to use clearinghouse for new applicants • Penalties - $50 or 10%, which ever is higher - Waivers-one time vs. multiple - Reinstatement fees

10. Midwest Region – 2008 • Farmers-exemptions • High MPG’s • Delinquent Returns • Permitting Services • Google-Street Maps

11. Southeast Region - 2008 • BudgetHow are we going to continue to network? What affects has your state endured? • DOTLack of participation during legislation and support in regards to compliance/collections • State AgenciesInconstancies with processes (IRP & IFTA) same section. Centralization of processes to assure no credentials are issued if carrier has suspended, inactive or revoked credential

12. Southeast Region - 2008 • TrainingLack of adequate training for Motor Carriers, DOT, Enforcement and local governments • Enforcement Clearinghouse consistency and TACT (Ticketing Aggressive Cars & Trucks) • DecalsThe need for identification/vehicle specific to assure compliance.

13. Northeast Region - 2008 • Retail dyed fuel pumps: dyed fuel into propulsion tanks – can’t perform surveillance at all stations • Staffing: flux of staff – re-org of staff – need to have dedicated inspections staff - fuel issues • Paper trail – lack of trail to ensure that tax is being paid

14. Northeast Region - 2008 • Communication between jurisdictions to be improved for inspections • Inspections can’t issue Trip Permits on road • Fraudulent decals

15. Northeast Region - 2008 • Clearinghouse: not all jurisdictions in clearinghouse – not all juris. Entering decal info. • Uniformity with decals & license • Walk in service needs to be expanded in ON to many different locals – customer service

16. Northeast Region - 2008 • Biodiesel: no violation provisions QC – legislation to be revised • Manpower being taken from IFTA to cover Tobacco • Sighting reports: not being utilized

17. Western Region - 2007 • SSN v FEI number • Mexican Carriers - Bonding and CDL • Mexican v US Operating Authority • DOT# - Not always linking to IFTA • Dyed Fuel • Renewals/Grace Period - Jurisdictions not honoring • Decals - Tracking by Decal Number's • Trip Permits – Issuing electronically • Borders - Not only Mexico/Canada

18. Midwest Region - 2007 • Audit Selection - High KPL/MPG • Audit Requirements • Alternative Motor Fuels – Biodiesel and ethanol • Counterfeit Decals • Citations for non compliance • Decals – Placement and visibility (i.e., colored border) • Farm Tags • Government vehicles • Special Mobilized Equipment • Commercial zones

19. Northeast Region - 2007 • Roadside Enforcement - Misuse of dyed fuel – Katrina and IRS waiver • Biodiesel – Taxation/reporting, ways to catch backyard manufacturers' and ways to determine % alternative fuel in tank • Information exchange - Between Law Enforcement and IFTA (using CH and SAFER) • Decals and Licenses - Not charging opens doors for base jurisdiction shopping • Decals – Companies producing inferior decals, carriers ordering more decals then they need (decal fraud), incorporate IFTA & IRP identification (barcode) on TP license plate to eliminate decals, decal placement education • Dyed diesel – IFTA & exempt usage, out of jurisdiction carriers using and how to enforce payment of fines • Audit count – reduce for 3% or (1) include certain activities in audits (inspections) or (2) count each period as an audit • Buses operating interjurisdictionally under multiple legal entities

20. Southeast Region - 2007 • Hurricane • Off highway fuel use • Early decal display – 2005/2006 December • Non-pay Non-file licensees – Bond, Impound • Split Tax rates – Rate change mid-quarter • Lease issues • Alternative fuels - Bio diesel and LPG/CNG • Vehicle Specific Decals/License • Standardized forms and manuals • Enforcement