Expert
Posts: 3853
    
Location: Vermont | Yes, if you don't submit your road tax monies...and they have started to cross-check those who are purchasing quantities of methanol against road taxes monies... Here is a site which has everything you want to know about biodiesel...:D http://www.biodiesel.org/ |
Expert
Posts: 3853
Location: Vermont | Originally written by Painted Horse on 2008-05-24 12:06 AM
Luckily the Boi Diesel you make is not dyed red. So if you are stoped and have your fuel tank "Dipped" it won't show red. So it will be a lot harder for the law enforcement to know that the fuel you are using has not been taxed. Based on the smell, they can ask you to produce either a fuel receipt or your tax receipt...Consider yourself warned...Uncle Sam is looking for all of the revenue he can find... But then again I just got this... Another problem is that when you try to register with the IRS to pay these federal road taxes (to say nothing of the state side), most people are TURNED DOWN. This happened to me personally, I have the rejection letter from the IRS. It's form 637 "registration to file certain excise taxes"...you're supposed to file on form 720 - IF you've been approved via the 637 application. I told them exactly what my business was doing (and our customers) and they said that there was no tax for that. I've asked other IRS people and they said there is a tax. We even invited the IRS to take a look at what we're doing. They came out and looked at everything, then left saying they'd get back to us about the vegetable oil stuff, but never did.
So clearly, the IRS doesn't know what it's doing. The day that they put clear guidance in writing is the day I'll fully comply with whatever they say to do - and then lobby for change. But until they can't be clear about what the law is today, they cannot expect compliance.
At the state level, Texas (and California) define biodiesel as 'wholly or partially derived from vegetable oil', which includes SVO/WVO. Since Texas exempts "biodiesel" from road taxes (40 cents, I think), we don't have to pay it.
Jason Burroughs
DieselGreen Fuels
512-391-0569
www.dieselgreenfuels.com
Edited by PaulChristenson 2008-05-25 1:52 AM
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Biodiesel
