Man fined for not paying motor fuel tax on Vegetable oil!

[babalu87]

http://www.newsobserver.com/news/story/599471.html

Bruce Henderson, The Charlotte Observer
Bob Teixeira decided it was time to take a stand against U.S. dependence on foreign oil.
So last fall the Charlotte musician and guitar instructor spent $1,200 to convert his 1981 diesel Mercedes to run on vegetable oil. He bought soybean oil in 5-gallon jugs at Costco, spending about 30 percent more than diesel would cost.

His reward, from a state that heavily promotes alternative fuels: a $1,000 fine last month for not paying motor fuel taxes. He has been told to expect another $1,000 fine from the federal government.

To legally use veggie oil, state officials told him, he would have to first post a $2,500 bond.

How many other states have similar laws? Could my buddy be in violation of a Massachusetts law for putting home-brewed bio-fuel in his F250?

Reduce dependence on foreign oil, just make sure the state gets there share.

Then there is this guy.........

State Sen. Stan Bingham, R-Denton, is known around Raleigh for his diesel Volkswagen fueled by used soybean oil. The car sports a "Goodbye, OPEC" sign.

"If somebody was going to go to this much trouble to drive around in a car that uses soybean oil, they ought to be exempt" from state taxes, he said.

Well, draft the law you dumbass

 

[Highbeam]

Yep, your buddy would be in violation of tax evasion. I buy off-road diesel fuel 55 gallons at a time and save 40 cents per gallon because I am not allowed to use the fuel on the roads. In other words, if I used the off road fuel or homemade fuel than I would be "stealing" 40 cents per gallon from the gov't. They get pretty excited about that.

 

[restorer]

Here we go with a whole new specialty in law. The bio-fuel, alternative energy consumer use law for environmental protection legal services. Next thing we will have to pay an excise tax each time we go to the burger joint for environmental safe disposal of toxic french fry oil. These regulators need to get a life. Maybe we need to rethink the hover car, that way the tax evaders can say, but we are not using the "highway" we are using the air above it and are, therefore, not subject to any use tax.

 

[mayhem]

Just put a hand crank pump in your home heating oil tank and fill your deisel with that. Same stuff, no road tax.

 

[Highbeam]

"Just put a hand crank pump in your home heating oil tank and fill your diesel with that."

Careful now, like off-road diesel - home heating oil is dyed blood red to indicate to enforcement folks that you are using it in a vehicle. That's how people get caught. The red dye actually leaves a residue in the exhaust system that can be swabbed and used to convict you. The dye stains your fuel filter too. It really is blood red, an amazing amount of dye.

Home heating oil is often state sales tax free as well as road tax free so it is even cheaper. And yes, depending on your location home heating oil is the same thing as off-road high sulfur diesel. Most locations use #2 diesel for HHO. In the winter, you might want #1 diesel.

 

[webbie]

I just spoke to my friend who owns Greasecars and they are starting to pay all their taxes on the fuel before they sell it - still only costs $1.50 a gallon for their filtered veggie oil.

I'm going to do an interview and small factory tour soon on these conversions (converts diesel to veggie oil).....and I will make certain I ask such questions.

I can see both sides of the debate - the biofuels still use the roads and wear them down, etc.

BUT, the % of vehicles using them is so low, that it would be good to exempt this from tax until it actually makes a dent (say, over 1% or so).

 

[Highbeam]

In WA we have a Off Road Vehicle registration program for dirtbikes, ATVS, snowmobiles, etc. Since it was agreed that the ORVs should not pay road taxes but it would be too hard to refund them, a portion of the state's gas tax has been earmarked for the ORV program to be spent on trails, bridges, latrines, and other ORV related infrastructure. A side issue is whether these funds get spent on off-road vehicle projects and not stolen for non motorized projects.

So perhaps the road tax should be paid for alt fuel but then that portion of the tax paid by alt fuel users be earmarked to a fund set up to develop the alternative fuel infrastructure as a reward for using alt fuel. It is a slippery slope to just say that if you can source something that burns as fuel that you shouldn't have to pay for roads.

I actually think the tax per gallon is a decent way to properly tax those who drive more miles or who drive heavier vehicles and also reward high MPG users.

 

[HarryBack]

Just put a hand crank pump in your home heating oil tank and fill your deisel with that. Same stuff, no road tax.

Here in MA, if you get caught with red diesel in your vehicular tank, I think the first offense is $10,000! That buys alot of taxes! Some officials even use hollow glass rods to "dip" the tank and visually inspect color.

 

[mayhem]

Yikes. Makes sense that there would be a reliable way to test for the use of home heating oil in a vehicle. Fortunately for me I don't have a deisel so I have not been foolish enough to try this.

 

[jpl1nh]

Craig, I appreciate your perspective regarding road wear and tear costs and eliminating taxes for now. If government was truly serious about encouraging biofuel use, then they would increase the taxes on fossil fuels and eliminate taxes on biofuels. They could cover the road costs of everybody from the increased fossil fuel taxes and reward those conscienous enough to use biofuels. If biofuels got to be a major part, (not 1%, but maybe 10 or 20 %) of the energy market, they could start phasing in taxes as necessary. It certainly ain't necessary now! IMO government is not yet serious about biofuels. Its still just a PR effort, not a government backed concept.

 

[begreen]

We pay a decent amount of tax that goes to the dept of transportation. It's ridiculous to penalize people for using alternatives like vegetable oil. What are they going to do in a few years with plugin hybrids, add a tax on electricity? That'll be a hell of an incentive. I think they should give the guy a tax credit for getting off of imported oil. Time govt. went on a major diet. This nonsense makes my blood boil.