Certainly selling biodiesel or veg-oil for use on the street to others is not legal, but what about for your own consumption, and even then as a blend to regular number 2 diesel. Can you just consider it an additive to the fuel.
I guess if you really made a bunch of it, the revenuers might take notice.
has this been discussed? I'm new to this section...
mike
__________________ SOLD--97 F-250 HD PSD XL reg cab 4x4, 84k miles. E40d 5R110 torque converter-John Wood trans, 4.10 gears (Detroit Locker!). Banks power pack, Stock AB splitshots, TS 2-pos chip, Pedal-switched 10k mod., aFe intake, Ugly Saddle Brown metallic paint. 290 rwhp. No leaks.
Its a grey area. Officially, according to the FEDERAL tax system, it must be taxed.
State taxes are a different story. Some states do, and some do NOT have a system for paying the tax.
Now some will say that Bio-D is an "additive" and additives do not pay road tax. If that were the case, then I dont think they would be passing legislation allowing tax BREAKS for running Bio-D. (its in the works, but it hasnt passed both house and senate to become law yet).
I remember in Seattle, one of the first guys to COMMERCIALLY sell bio-d from his homegrown setup got shutdown by the revenuers for not charging and paying taxes. He got busted because the local papers did a big write up on what a cool thing he was doing.
If your a small time single use producer (such as just your own rig) then I wouldnt worry to much about trying to pay road taxes right now. The system to PAY just isnt there for the average user.
I have found website literature that claims we DO need to pay taxes and I have found websites that claim we DONT need to pay taxes.
I think the IRS allows up to 440 gallons per quarter for a ahomebrewer before you ahve to pay roadtax. The states may or may not have a system to collect it. I will prob. check with FL DOT before I just run it.
__________________
J.D.'s Fords: 1986 F-250 6.9 diesel Solid State Glow Plug System 3.55 gears C-6 2WD 178,960 miles.... it still runs pretty good!
Wishlist H-max turbo, T19 tranny,
1989 Ford Ranger ga$$er, non runner, soon to be donated or scrapped!
I have read that the Biodiesel is taxable. Here is something from another site:
Quote:
TAXES
Federal (Internal Revenue Service)
The applicable diesel fuel tax rate is 24.4 cents per gallon. This tax is paid by submitting Form 720 Quarterly Federal Excise Tax Return. This also applies to biodiesel fuel which is considered a blended diesel fuel. The person that produces the blended diesel fuel, outside the bulk transfer / terminal system (blender), is liable for the tax which is imposed under IRC section 4081(b) upon sale or removal. Blended diesel fuel is any mixture of diesel fuel, with respect to which tax has been imposed and any other liquid (such as kerosene) which no tax has been imposed. The number of gallons of blended diesel fuel subject to the tax, is the difference between the total number of gallons of blended diesel fuel removed or sold, and the number of gallons of previously taxed diesel fuel used to produce the blended diesel fuel. An exclusion from tax on the "blended taxable fuel" mixture is provided in Treasury Regulations section 48.4081-1(c)(1)(ii) for minor blending if: during any calendar quarter the removal or sale of the mixture in aggregate by the blender is less than 400 gallons.
http://www.irs.gov and go to publications/forms to Form 720 & Pub 510.
California (State Board of Equalization)
When used in a diesel-powered vehicle, both biodiesel and straight vegetable oil are taxable under the Diesel Fuel Tax Law. Based on the law (Blender) 60012, Blended diesel fuel 60023, supplier 60033, Blender liability 60055, Levy of tax 60052, and supplier license 60131, biodiesel makers would be "Blenders". As such would need to register as a supplier of diesel fuel and pay $0.18 per gallon on the blending activities. The application for supplier and/or Ultimate Vendor License is BOE-400-FCO.1 (4-01).
It looks as though we can produce 400 gallons per quarter without tax. I suspect none of us will exceed that volume. That said, I probably will not rush down to pay those crooks. If all of our road use taxes were used for the roads there would not be a single pot hole or dilapidated bridge.
__________________
<span style="color: blue">2003 SD F250</span>, 7.3 ltr. PSD, Auto, Lariat, White over Gold Crew Cab, FX4 Package, 3.73 Limited Slip, Line-X bed coating, DS External Transmission Filter, AIS Severe Duty, DS 203 degree thermostat, Grill Mod (gutter guard), Ruff Stock Grill Guard, System1 In-line Fuel Filter (pre-pump), Hutch mod, Harpooned, Bridgestone Dueler A/T REVOS, Monroe Reflex shocks, DS Coolant Filter Kit, 119k miles
snider--are we saying that MOST of the politicians are C R O O K S ?????? how can this be--you mean when they get in office they are swayed by M O N E Y?????? [img]/ubbthreads/images/graemlins/vomit.gif[/img] [img]/ubbthreads/images/graemlins/vomit.gif[/img]
__________________
94 f250 idi turbo sc e4od alum fac rims 149,289 --dana 60 frt with posi--10.25 rear w/posi--shouldnt get stuck!! ats turbo 3" parts on--what a diff from stock turbo!!!!!--- also 96 F250 with 305,000 is fixed!!-- 7.3 rattler-also 85 6.9-needs new engine!! tired!!
[ QUOTE ]
snider--are we saying that MOST of the politicians are C R O O K S ?????? how can this be--you mean when they get in office they are swayed by M O N E Y?????? [img]/ubbthreads/images/graemlins/vomit.gif[/img] [img]/ubbthreads/images/graemlins/vomit.gif[/img]
[/ QUOTE ]
Several years back, they caught (I believe 70 of 77) county commissioners taking kickbacks in this state. Every now and then someone who works for them will make a public statement that nothing has changed. Also, over 50% of our state road use taxes go into the general fund and now they want to add addtional fuel tax to pay for fixing bridges. What would you call them?
__________________
<span style="color: blue">2003 SD F250</span>, 7.3 ltr. PSD, Auto, Lariat, White over Gold Crew Cab, FX4 Package, 3.73 Limited Slip, Line-X bed coating, DS External Transmission Filter, AIS Severe Duty, DS 203 degree thermostat, Grill Mod (gutter guard), Ruff Stock Grill Guard, System1 In-line Fuel Filter (pre-pump), Hutch mod, Harpooned, Bridgestone Dueler A/T REVOS, Monroe Reflex shocks, DS Coolant Filter Kit, 119k miles
Now I know the IRS allows a tax break for “ qualified clean-fuel vehicles”. I don’t know what type of vehicles qualify, but I’m sure they wouldn’t want us diesel folks lobbing to get WVO and Bio-d vehicles on that list. The deduction for a single vehicle has got to be far greater than the fuel tax they are missing out on.
__________________ 1997 F-250 2wd PSD XLT Ext. cab White
Mods - A.R.E. topper, Open element air filter
How would the government know, unless you tell them, or announce to the world what you're doing? I don't think any of the materials used in either WVO or Bio D are tracked by big brother, at least not in the quantities that individuals would manufacture/use. Looking for a tax credit as an alternate fuel only brings attention to a good source of untaxed, cheap fuel.
snider--isnt it interesting how people get elected to office--and change their attitude soooo severly?????? and they wonder how come some of them years ago had blocks tied to their legs--and you know the rest-------or like some cops when they put the badge on!!!!!!!
__________________
94 f250 idi turbo sc e4od alum fac rims 149,289 --dana 60 frt with posi--10.25 rear w/posi--shouldnt get stuck!! ats turbo 3" parts on--what a diff from stock turbo!!!!!--- also 96 F250 with 305,000 is fixed!!-- 7.3 rattler-also 85 6.9-needs new engine!! tired!!
I've always been afraid somebody will call the FBI during my process of gathering supplies. I can just see the ATF knocking down my door saying "full cavity search- roto rooter!" [img]/ubbthreads/images/graemlins/crazy.gif[/img] Actually I think the most likely way to get in toruble is 1) to sell teh stuff without charging all applicable taxes or 2) the government might think your making crystal meth or moonshine.
__________________
J.D.'s Fords: 1986 F-250 6.9 diesel Solid State Glow Plug System 3.55 gears C-6 2WD 178,960 miles.... it still runs pretty good!
Wishlist H-max turbo, T19 tranny,
1989 Ford Ranger ga$$er, non runner, soon to be donated or scrapped!
The AutoGuide.com network consists of the largest network of enthusiast-owned enthusiast-operated automotive communities.
AutoGuide.com provides the latest car reviews, auto show coverage, new car prices, and automotive news. The AutoGuide network operates more than 100 automotive forums where our users consult peers for shopping information and advice, and share opinions as a community.
Linear Mode
