INTERNATIONAL FUEL TAX AGREEMENT
IFTA, Inc. Clearinghouse
Funds Netting Account
JP Morgan Chase
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
• The account is a checking account
dedicated to funds netting; sits with a zero
balance pending the next funds netting
cycle.
• Allows for ACH Credit and Funds Transfer
(Wire) activity only – money in and money
out
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
• US and Canada to US:
– Once funds netting final totals are completed,
jurisdictions owing funds will transmit by ACH
Credit (US) or Funds Transfer (Canada) into
the funds netting account in US $.
– IFTA, Inc. will then transmit funds by ACH
Credit (US) and Funds Transfer (Canada) to
those jurisdictions due money from the Funds
Netting Account in US $.
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
• Canada to Canada
– A separate account will be set up with the JP
Morgan Chase affiliate in Canada (World
Bank). The account has not been set up yet,
but will allow the Canadian jurisdictions to
transmit Canadian $ to and from the Funds
Netting Account via ACH Credit.
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
• Two Test Phases
– Penny Test – Each jurisdiction participating in
the current funds netting test will transfer $.01
to the Funds Netting Account.
– Funds Netting Test – From the
Clearinghouse, a Final Funds Netting report
will be run from actual transmittal data
uploaded by the test jurisdictions. Based on
that report, those jurisdictions will transfer
money to or receive money from the Funds
Netting Account.
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
• Penny Test Status
– On July 2, 2008, Kansas successfully
transferred $0.01 into the Funds Netting
Account.
– From JP Morgan Access, IFTA, Inc. was able
to verify the details of that transaction and e-
mail Kansas a copy of the verification.
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
Balance and Transaction Detail Report for KS Transaction
CREDIT Details
AMOUNT TRANSACTION DESCRIPTION TRAN OUR-REF-NO AVL TIME DATE
TYPE
0.01 EFT Credit ACH 1846668427TC SAME 5:16 7/2/2008
ORIG CO NAME: ST OF KS STARS
ORIG ID: 1486029925
DESC DATE: 080630
ENTRY DESCR: VEND PAYMT
ENTRY CLASS: CTX
TRACE NO: 021000026668427
ENTRY DATE: 080702
IND ID NO: 022130983
IND NAME: 0006860640757 01
ADDENDA: ISA*00* *00* *17*101000695 *17*122100024 *080630*200
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
– Also on July 2, 2008, IFTA, Inc. sent the return
transfer to KS (which is done by batch through JP
Morgan Access)
– The batch was created with one jurisdiction (KS) and
released
– The bank sweeps for batches 7 times per day from
5:30 a.m. (PT) through 6:00 p.m. (PT)
– IFTA, Inc. released the batch at 8:00 a.m. (PT) and it
was in process by the bank at 8:30 a.m.
– Within 30 minutes, the batch had been approved by
the bank and submitted for payment
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
– On the morning of July 3, 2008, we received
confirmation from Kansas that they had
received the penny that morning.
ACH Credit Received 0.01
Immediate Funds
INTL FUEL TAX,,PAYMENTS,021000022098705
0200005150,0000000001,MOTOR FUEL TAX,KS DEPT OF
REVENUE
ADDENDA: 05IFTA TRANSMITTAL PAYMENT
00012098705
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
• Funds Netting Test Status
– The actual funds netting test will take place
after the penny tests are completed with each
of the four test jurisdictions.
Celebrating 25 Years of Cooperation and Trust - 2008
INTERNATIONAL FUEL TAX AGREEMENT
Celebrating 25 Years of Cooperation and Trust - 2008