When truckers talk about "prorate," they're referring to the complex system of distributing registration fees and fuel taxes across multiple jurisdictions. It's the backbone of interstate trucking compliance, combining IRP (International Registration Plan) and IFTA (International Fuel Tax Agreement) requirements into what the industry calls "prorate."

Think of prorate as your truck's legal passport and tax system rolled into one. It ensures you're paying your fair share in each state or province based on how much you actually operate there. Without proper prorate compliance, your authority to operate across state lines could be compromised.

The term comes from "prorating" or proportionally distributing your fees based on your actual operation in each jurisdiction. For example, if 30% of your miles are in Texas, you'll pay 30% of your registration fees to Texas through the IRP system.

For new truckers or growing fleets, understanding prorate is crucial because it impacts everything from route planning to fuel purchase strategies. It's not just about compliance – it's about optimizing your operation to minimize costs while maintaining full legal operation.