MasterCard International, a leading global payments company, and TAXWARE International, Inc., one of the foremost developers of worldwide commercial tax compliance systems, announced Monday the release of Motor Fuel Tax System , which will provide tax calculation and exemption determination for the MasterCard Government Fleet Card Tax Exemption Program. MFT is the first automated, commercial excise tax compliance software package that calculates federal and state excise taxes on transportation fuels.
MFT provides government agencies that use MasterCard-branded fleet cards under the Government Services Administration’s (GSA) SmartPay program with an efficient method to automate tax calculations and exemptions on federal and state excise taxes on qualifying petroleum fuel purchases. When the card is presented to a qualified merchant, the transaction record is submitted with additional information, and populated with data for the tax exemption process.
“TAXWARE’s expertise in tax calculations, exemption processing, and jurisdiction reporting has helped guide us through the maze of the tax calculation process,” said Steve Abrams, senior vice president, Corporate Products, MasterCard. “The improved product flexibility and comprehensive record reporting TAXWARE will provide to our issuers and oil companies has enabled MasterCard to be the first fleet card brand in the market.”
Motor Fuel Tax System is the first comprehensive tax system that calculates federal and state excise tax for petroleum transportation fuels, as well as applicable exemptions. This software accommodates tax exemption processing for government cardholders on the purchase of fuel, and streamlines the process for everyone involved, including cardholders, fleet card issuers, motor fuel retailers, oil companies and their merchant acquirers, as well as government central billing locations.
TAXWARE has developed special processing elements to calculate taxes and determine motor fuel exemptions, including the tax exemption classifications related to GSA. MFT is updated on a regular basis by TAXWARE to reflect the most current law changes “Our alliance with MasterCard has allowed us to help reengineer the entire tax process surrounding the fleet card purchase of transportation fuels,” said Dan Sullivan, CEO, TAXWARE. “We are pleased to be working with MasterCard on the development of this application, and the end product will save significant time and red tape for the many companies, agencies, and individuals involved in the tax calculation and reporting process.”
The MasterCard tax exemption program provides the capability for identifying fuel-related taxes in government fleet card transactions that qualify for tax exemption, facilitating net billing and reimbursement of taxes. MasterCard fleet card issuers will be able to net bill fuel transactions qualifying for tax exemption, and recoup these funds from the applicable taxing jurisdiction. This is one of many MasterCard innovations developed for the federal government SmartPay cardholders, along with the unique MasterCard “Multi Card” – a single card and platform for purchasing, travel, and fleet transactions.
The MasterCard Fleet Card Tax Exemption Program will be made available to Federal government agencies first. State and local governments, as well as tax exempt organizations, such as universities and charities, will be offered the program later in 1999. The petroleum companies that currently participate in the government program with MasterCard and TAXWARE include Amoco, BP Oil, Cenex, Chevron, Getty, Mobil, Phillips 66, and Sunoco.
About MasterCard International MasterCard International has the most comprehensive portfolio of payment brands in the world. With 23,000 member financial institutions, serving consumers in 220 countries and territories, MasterCard is the industry leader in quality and innovation. More than 600 million MasterCard, Maestro, Cirrus and Mondex cards are accepted at more than 15 million locations worldwide. In 1997, gross dollar volume exceeded $600 billion. MasterCard can be reached through its World Wide Web site at .
About TAXWARE International Founded in 1964, TAXWARE International is a leading developer of worldwide commercial tax and compliance systems. The company’s systems for automated tax compliance include modules that address sales/use, consumer’s use, Internet, property, payroll, and international taxation; address verification; exemption processing; and automated returns. TAXWARE is privately held with headquarters in Salem, Mass., and has offices in Los Angeles, San Mateo, Cincinnati, Chicago, and London. For more information call (978) 741-0101 or visit the Web site at [www.taxware.com].