Guidance is provided regarding the reporting of miles and gallons that are exempt from motor fuels tax on International Fuel Tax Agreement (IFTA) quarterly tax returns. When an IFTA jurisdiction suspends their fuel tax or a taxpayer travels with a fuel trip permit, some of those miles or gallons may be exempt. Each IFTA jurisdiction has its own definition of tax-exempt miles. It is the taxpayer’s responsibility to know what miles are tax-exempt for each jurisdiction in which the taxpayer operates. Exemption information is available on the IFTA website. To claim exempt miles, a taxpayer’s account must be updated prior to filing a return. More information is available in the International Fuel Tax Agreement (IFTA) and Interstate User Diesel Fuel Tax Guide. Special Notice L-1030, California Department of Tax and Fee Administration, July 2026