Taxes

Selahdoor

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I just heard, for the first time.... That there are states that tax homemade biodiesel!

Can anyone here, tell me how that works, in the state of Washington?

I don't find it in the list of 27 states that do so. Yet, there supposedly is a flat rate of some sort you are supposed to pay to the state.

I'm more confused than when I started!
 

79jasper

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Not the first I've heard of it.
You can also be "taxed" for collecting rain water in some areas.


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jwalterus

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technically.....

you should be remitting road taxes to the state and federal govt for any fuel you make that is used on the roads..........

the question is, are you actually cracking the oil into bio, or are you just filtering the oil and using it as a fuel source?
 

Selahdoor

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Been thinking about this...

If I am mixing RUG into WVO, at 20% RUG... And I get 10 miles per gallon mileage...

Aren't I paying the same amount of road taxes, as the guy in the tiny little car that gets 50MPG???



By the way, I am not using any WVO yet. It will be a LONG time before I am set up to process that stuff.
 

OLDBULL8

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That's done on an honor system. Just don't advertise on any diesel forum that you do. There watching.

Edit your post about doing it DELETE it.

There is a forum on alternate fuels.
 

chris142

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In california it's not legal to use non taxed fuel. But many people do.
 

Selahdoor

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That's done on an honor system. Just don't advertise on any diesel forum that you do. There watching.

Edit your post about doing it DELETE it.

There is a forum on alternate fuels.


I don't do it.

I have been thinking about doing it. As I said in the other response, it will be a long time before I am even set up to begin processing WVO. I haven't even begun to get the needed filters, pump, storage, etc...

After finding this out, it's just as likely as not, that I will never do it.
 

Macrobb

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DaveBen

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We have RED Diesel that is non taxed. If you get caught using Red diesel on the highways you can be fined up to $10,000. Not worth it in my opinion.
 

Macrobb

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We have RED Diesel that is non taxed. If you get caught using Red diesel on the highways you can be fined up to $10,000. Not worth it in my opinion.
Yeah, but red diesel is not biodiesel. If your home-made biodiesel mixture is red, you might have some issues. If not, you'll be just fine... especially as it seems to be fully legal!

Edit:
I did find one other bit of info:
http://www.ncsl.org/research/transportation/taxation-of-alternative-fuels.aspx

You may need to purchase a sticker, but there's nothing saying it can't be done. Unfortunately, I can't find much about said sticker. If you wanted to use Propane, you just pay a $45/year fee and get a sticker and be done with it.

There's probably something similar here, but I'm having trouble finding a lot of information on bio/wvo.
You might try printing a few of these pages out and go ask at the local sheriff’s office or DMV? They might be able to point you in the right direction.
 
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DaveBen

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Yeah, but red diesel is not biodiesel. If your home-made biodiesel mixture is red, you might have some issues. If not, you'll be just fine... especially as it seems to be fully legal!(/QUOTE]

No but Red Diesel is un-taxed just like Biodiesel. Your conversation is about un-taxed diesel. :)
 

Macrobb

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No but Red Diesel is un-taxed just like Biodiesel. Your conversation is about un-taxed diesel.

There's actually some differences legally. There are certain exemptions for biodiesel and other "alternate fuels" that don't apply to dyed or non-taxed diesel.
There's also that specific exemption(to licensing requirements) for home-production of biodiesel for personal use, up to 5,000 gallons per year.

Plus, if you get 'caught' with dyed diesel, it's going to be a fine. If you get 'caught' with something else, it's not going to be as cut and dry, considering all the special rules surrounding it.
 

Selahdoor

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Just look into running a propane vehicle. There will be a lot more information on that, and it's similar in that taxes are generally not paid at the 'point of purchase'.

Edit:
Actually...
Found a couple of useful things:
http://dor.wa.gov/Docs/Pubs/SpecialNotices/2008/sn_08_VeggieOil.pdf

http://apps.leg.wa.gov/rcw/default.aspx?cite=82.08.0205

Sure looks like making biodiesel for personal use is actually tax exempt, both from sales and use taxes.
Thank you!!!!

~~~

The problem with red diesel is if it isn't taxed. Here, it's called "off-road diesel". And yes, if you are caught with it in your tank, it's a hefty fine.

It does, however get kind of sticky, if you buy it at a station, and that station charges you exactly the same as the diesel from the other pumps. You obviously paid taxes on it. Or did you? If you didn't, the station is going to have to answer some questions. If you did, are you still in trouble???

Oh, and the question wasn't about diesel that isn't taxed, per se. The question was about taxes on biodiesel. :)
 

DaveBen

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There's actually some differences legally. There are certain exemptions for biodiesel and other "alternate fuels" that don't apply to dyed or non-taxed diesel.
There's also that specific exemption(to licensing requirements) for home-production of biodiesel for personal use, up to 5,000 gallons per year.

Plus, if you get 'caught' with dyed diesel, it's going to be a fine. If you get 'caught' with something else, it's not going to be as cut and dry, considering all the special rules surrounding it.

Good to know. Thanks
 

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