KYU vs IFTA (they are different systems)
IFTA (International Fuel Tax Agreement)
- Reports fuel usage (gallons + miles)
- Required if you operate a qualified motor vehicle in 2+ IFTA states
- Covers most of the U.S. + Canadian provinces
- Filed quarterly
KYU (Kentucky Weight Distance Tax Account)
- Kentucky-specific mileage/weight tax
- Applies to certain commercial vehicles operating in or through Kentucky
- Based on weight and miles in Kentucky
- Filed separately from IFTA
Key rule
If you are required to have IFTA, you must still file IFTA even if you also have a KYU account.
KYU does not:
- Replace IFTA
- Exempt you from fuel tax reporting
- Combine into IFTA reporting
They are two separate obligations:
- IFTA = fuel tax (multi-state)
- KYU = Kentucky road use tax (state-specific)
Common confusion
Some carriers think:
“I have KYU, so Kentucky fuel reporting is covered.”
That’s incorrect.
Even with KYU, Kentucky miles and fuel are still part of your IFTA quarterly report.
Simple rule of thumb
- Running interstate → File IFTA
- Running in Kentucky with qualifying truck → Also maintain KYU if required
- Both may apply at the same time