If you run home-made fuels in your car / truck do you have to pay fuel taxes? I've been looking for KY law on this and have not found anything except tax CREDITS for bio-diesel makers.
JCKnife - Generally not. If you make it and use it yourself, and you don't sell it or give it away, it usually isn't taxable.
Slight hijack - If you want a car to convert to WVO I have an '85 300TDT in good running order for sale that would make a great WVO conversion!
Originally Posted By RotaryJihad:
JCKnife - Generally not. If you make it and use it yourself, and you don't sell it or give it away, it usually isn't taxable.
Slight hijack - If you want a car to convert to WVO I have an '85 300TDT in good running order for sale that would make a great WVO conversion!
I heard some states are cracking down on biodiesels. They say they need to be taxed like all highway fuels.
YMMV
If this biodesiel is used in a highway vehicle I understand that you need to pay both state and federal highway taxes on the fuel you use.
I remember a story form a while back where a fellow was driving his old MB which was converted to run on bio. He was pulled over by DOT because they saw the powered by biodesiel on the trunk lid and wanted a sample of his fuel and records supporting that he had paid highway tax on the all fuel that he had be using since the conversion. I belive this ended with the vehicle being impounded and large fines being levied. I think this was in AZ.
YMMV.
I know other states are a lot harsher about this issue. Need to know about Kentucky.
Originally Posted By AN94NK:
Originally Posted By RotaryJihad:
JCKnife - Generally not. If you make it and use it yourself, and you don't sell it or give it away, it usually isn't taxable.
Slight hijack - If you want a car to convert to WVO I have an '85 300TDT in good running order for sale that would make a great WVO conversion!
I heard some states are cracking down on biodiesels. They say they need to be taxed like all highway fuels.
YMMV
And how exactly do they enforce that?
Originally Posted By JCKnife:
I know other states are a lot harsher about this issue. Need to know about Kentucky.
From KY dept of energy site:
Individuals making their own fuel for on-road use (making biodiesel that constitutes blending homemade biodiesel with diesel fuel or making alcohol and blending it with gasoline) are required to be a licensed gasoline or special fuels dealer. Every individual or legal company holding a valid Kentucky Special Fuels Dealer license must post a minimum $5,000 bond. Contact the Kentucky Department of Revenue at 502-564-3853 for more information. See the Kentucky Department of Revenue Form 72A301.
Do I have to pay road tax on BioDiesel fuel?
Good question, we do not give legal advise so this is only our opinion...
This question is one we can not answer because it all depends on the laws in your country & state. Check with your local authorities or do an internet search to see if you can locate any forms or information for the area you live. In the US, if you make BioDiesel for highway use, you should file a road tax form to claim the fuel you used and pay the road tax on it. This may also be applicable for the state in which you reside as well. Generally speaking it is our understanding, if you reside within the US and make BioDiesel for off road or farm use you do not need to file or pay road taxes on the fuel you make. However we are not a law firm and this could vary according to the state or country in which you live so do your own research.
This is from officialbiodesiel.com
If you are using the vehicle on public roadways you are suppose to pay road taxes on that fuel. It doesn't matter if you make it or someone gives it to you. The law is already in place. Some pumps i see list the state and federal taxes per gallon. If the state of KY doesn't press the issue then you can skate on by. But belive me if they decide that the revenue will outweigh the expence of collection you will see enforcement of the tax.
I did a bunch of internetz research on this subject a few years ago. And the question isnt am I suppose to pay? Because yes you are. It's am I likely to be caught using untaxed fuel on public roads.
Not trying to be a party pooper just stating it as I understand it.
Originally Posted By airgunner:
Originally Posted By AN94NK:
Originally Posted By RotaryJihad:
JCKnife - Generally not. If you make it and use it yourself, and you don't sell it or give it away, it usually isn't taxable.
Slight hijack - If you want a car to convert to WVO I have an '85 300TDT in good running order for sale that would make a great WVO conversion!
I heard some states are cracking down on biodiesels. They say they need to be taxed like all highway fuels.
YMMV
And how exactly do they enforce that?
The case I mentioned in AZ was the result of a unrelated stop. CA stop at a stop sign. During the ticket process a DOT officer stopped and notices the powered by biodesiel sticker on the back. Chatted the fellow up on who did the conversion, what kinda millege he was getting, how long and how many miles since the conversion etc. Owner was proud as hell and loved telling about the process and everything, till the DOT guy demanded a fuel sample. It went down hill quick. If I remember by the time it was done he owed something like 47K in back taxes and penelties.
Edit: To add that this was a DOT thing and not AZ state.
Originally Posted By airgunner:
Originally Posted By AN94NK:
Originally Posted By RotaryJihad:
JCKnife - Generally not. If you make it and use it yourself, and you don't sell it or give it away, it usually isn't taxable.
Slight hijack - If you want a car to convert to WVO I have an '85 300TDT in good running order for sale that would make a great WVO conversion!
I heard some states are cracking down on biodiesels. They say they need to be taxed like all highway fuels.
YMMV
And how exactly do they enforce that?
Same way they enforce the NFA. Its illegal unless you have the right paperwork on hand at all times.
Originally Posted By AN94NK:
Originally Posted By airgunner:
Originally Posted By AN94NK:
Originally Posted By RotaryJihad:
JCKnife - Generally not. If you make it and use it yourself, and you don't sell it or give it away, it usually isn't taxable.
Slight hijack - If you want a car to convert to WVO I have an '85 300TDT in good running order for sale that would make a great WVO conversion!
I heard some states are cracking down on biodiesels. They say they need to be taxed like all highway fuels.
YMMV
And how exactly do they enforce that?
Same way they enforce the NFA. Its illegal unless you have the right paperwork on hand at all times.
The difference is, if you go to the range with an NFA item, anybody with eyes (or ears depending) can tell you're running any NFA item. If you are running Bio fuel, who's going to know unless you paste stickers on your rig or run your mouth about it like the idiot from AZ did? I've also never seen a DOT cop in KY? The closest thing I've seen is KY CVE officers and they focus on commercial trucks almost exclusively.
