OAR 740-200-0045: Inadequate Records Assessment

The International Fuel Tax Agreement (IFTA) Articles of Agreement, the IFTA Audit Manual and IFTA Procedures Manual adopted under OAR 740-200-0040 requires an additional assessment be imposed when a licensee fails to maintain or provide records adequate to support reported fuel tax. (1) If the Department determines the audit records produced by the licensee for the licensee’s fleet as a whole do not meet the standard for the adequacy of records specified in the IFTA Procedures Manual, the Department must impose an additional assessment by either: (a) Adjusting the licensee’s reported fleet Miles Per Gallon (MPG) to 4.00; or (b) Reducing the licensee’s reported MPG by twenty percent. (2) The IFTA Audit Manual describes that an Industry Average MPG may be applied to specific vehicles in a fleet under audit, when fuel or distance records for these vehicles are substantially impaired or missing based on such factors as: (a) Prior experience of the licensee; (b) Licensees with similar operations; (c) Other vehicles in the fleet with similar operations; (d) Industry averages; (e) Records available from fuel distributors; and (f) Other pertinent information the auditor may obtain or examine. (3) The Commerce and Compliance Division will periodically analyze industry fleet data to determine Oregon industry standard average MPG segregated by four vehicle weight groups: (a) 26,001 — 33,000 pounds; (b) 33,001 — 60,000 pounds; (c) 60,001 — 80,000 pounds; and (d) Over 80,000 pounds.