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NC Man Fined For Using Vegetable Oil As Fuel

mdsolar writes "The News and Observer reports on an Charlotte, NC driver who has been fined $1000 for not paying a fuel tax when he fills his tank with vegetable oil. Perhaps the funniest quote is this one: '"With the high cost of fuel right now, the department does recognize that a lot of people are looking for relief," said Reggie Little, assistant director of the motor fuel taxes division. "We're not here to hurt the small guy, we're just trying to make sure that the playing field is level."' Sure, since the field is so plainly tilted against Arab oil interests."

29 of 909 comments (clear)

  1. Arab Oil interests? by mr100percent · · Score: 5, Informative
    "Arab Oil interests?"

    That's a cheap shot at Arabs. And untrue. Did you know that the top 2 sources of crude oil are Canada and Mexico? Followed by Saudi Arabia and Venezuela? 3 of the top 4 sources of oil are non-Arab.

    1. Re:Arab Oil interests? by SEE · · Score: 2, Informative

      To be fair, Arab oil actually is the #1 source, beating out Mexico and Canada individually (but not collectively). Saudi Arabia isn't the only Arab country we get oil from, after all.

      Well, yes, if you aggregate all Arabic-speaking countries as a single source, but don't aggregate, say, all the Spanish-speaking countries as a single source, you can argue that the #1 source is "Arab oil". If however, you aggregate all the Spanish-speaking countries, it becomes clear the #1 source is "Hispanic oil". I rather fail to see how aggregating one group and not the other is to "be fair".

      Alternatively, we could consider OPEC's influence on our Crude Oil imports,

      Yes, if you count decidedly non-Arab countries (Venezuela, Nigeria, Angola, Gabon) as Arab, you can prove Arab oil is a majority source. And if you count a dog's tail as a leg, it has five legs.
    2. Re:Arab Oil interests? by cheezedawg · · Score: 2, Informative

      Excellent point, except you left off the biggest supplier of oil to the US- the United States! We produce about 40% of our oil needs domestically. The next biggest supplier, as you point out, is Canada, which accounts for a little less than 10% of our oil needs (or around 17% of our oil imports).

      So counting our domestic oil production, over 70% our oil comes from "non-Arab" sources.

      --
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  2. Re:they were hunting for biofuel users to fine by gone6713 · · Score: 4, Informative

    They weren't hunting for bio-fuel users. The illegal fuel they were looking for was diesel purchased for farm use. When you buy diesel for farm use you don't pay the road taxes on it, which can be around 30 cents a gallon, but you aren't supposed to use it on the road. It is a common thing around where i'm from (Nebraska farm country). They dye the farm diesel so that troopers can tell what type it is.

  3. Re:Regardless by Zarf · · Score: 2, Informative
    Does it help that the state version of the IRS is trying to get him out of the fine because even the tax man seems to disagree with taxing biodiesel? From the article:

    The state Department of Revenue, which fined Teixeira, has asked legislators to waive the $2,500 bond for small fuel users. The department also told Teixeira, after the Observer asked about his case this week, that it will compromise on his fine. Apparently the people responsible for carrying out the fine can't get the people responsible for drafting the laws to lift the fine... typical government run-around.
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  4. Re:humor? by I+don't+want+to+spen · · Score: 2, Informative

    I was going to ask if you knew what donkey punch meant - until I saw your Nick ...

    --
    Don't go to a brothel if you want to buy broth
  5. Re:How are they supposed to know? by awfar · · Score: 2, Informative

    ...cause it smells like french fries? Really, I think it does.... haha

  6. Many states fine you for driving with heating oil by billstewart · · Score: 5, Informative
    While this is the first time I've heard of a fine for using biodiesel, there are a lot of states that will fine businesses and sometimes individuals for using home heating oil instead of regular diesel. It's the same reason - highway taxes - and they don't whine about "level playing fields", they just say they want the money. There isn't much difference between some grades of diesel and heating oil - diesel may or may not have some additives in it, and some states will put colored dye in them so you can tell them apart and bust gas stations that sell heating oil as diesel.


    Back when I lived in New Jersey, I had oil heat, and if I'd forgotten to check the oiltank dipstick in a while and ran out of oil at night, I could get a can of diesel at the gas station to restart my furnace until the oil people could get there. It was really convenient.

    --

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  7. Re:Solar power and an electric car by mdsolar · · Score: 2, Informative

    The cracks that allow the water in come from wear. This goes as the fourth power of the axle weight http://en.wikipedia.org/wiki/Road#Maintenance. If you don't weaken the road surface, you don't get potholes as frequently.
    --
    Convert to solar power for what you pay now: http://mdsolar.blogspot.com/2007/01/slashdot-users -selling-solar.html

  8. Re:Hell hath NO fury by Rei · · Score: 3, Informative

    Infinitely.

    The government needs money to provide everything that it provides -- a common defense, support for those who can't afford it, transportation infrastructure, education, and so forth. We could debate all day what it *should* provide, but that's not the issue here. Even the most hardcore libertarians want the government to at least provide for a common defense.

    Well, how does the government pay for that? It doesn't need a one-time influx of cash; it needs a regular influx of cash. Obviously.

    The most equitable way to do this would be to have everything of value slowly trickle a small amount of its value to the government. Obviously, that's not going to happen. So, instead, we have this compromise system based on taxation at the time of transactions. It approximates, roughly, a constant income stream to the government which, in turn provides for a common defense and so forth.

    This notion of "double" or "triple" taxation somehow being unfair belies a complete misunderstanding of the process. John has a personal business that makes widgets. Sam buys a widget from him. Sam pays taxes -- single taxation. Now John pays taxes on his business -- there's double taxation! Now John gets paid by his business, but the government gets a cut. Triple taxation! Now Sam buys something with his income. Quadruple taxation! And on and on it goes. Why? Because, obviously, a one-time influx of cash into the government just won't cut it.

    --
    Everybody point at the libertarian and laugh.
  9. Re:So what? It's North Carolina... by Anonymous Coward · · Score: 1, Informative

    The same way they tax the oilcompanies or dinosaurs when you fill your car with gas...?

  10. What happens if you buy it from a gas station by grahamsz · · Score: 4, Informative

    There are a few gas stations near me that sell actual biodiesel.. presumably that's properly taxed.

    I imagine he's being hit by the same kind of statute that would stop you using red or farm diesel in your car.

    1. Re:What happens if you buy it from a gas station by Darlantan · · Score: 2, Informative

      Actually, I'd like to clarify your statement a little further. Generally it's a stock tank + small aux tank setup in small vehicles, though there are some spare tire well tanks available for purchase out there. Depending on how serious the driver is, it can be SVO in the small tank, or the opposite -- diesel in the small tank, used just for warming up/purging the system before shutdown.

      --
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    2. Re:What happens if you buy it from a gas station by pla · · Score: 3, Informative

      If his is like most of the other greasecars out there, it's got a dual fuel system with veggie oil on one side and standard diesel or a biodeisel mix on the other

      Biodiesel != running on vegetable oil. You can run B100 from a cold start in an unmodified diesel engine, without the slightest bit of trouble. You can even use it in post-2007 diesels that require ULSD (<15ppm sulphur), as biodiesel has effectively no sulphur.

      Now, buidiesel does have a higher gelling point than dinodiesel, but that just means you need to thin it in the winter (kerosene works wonders, though here in the NorthEast you'll probably need to run B20 at best in the winter).



      As for the more on-topic issue here of "should he get a fine for evading fuel taxes"... If you brew your own beer, you don't need to pay the alcohol tax on it. Why wouldn't noncommercial low-volume biodiesel production fall into the category?

  11. Re:Hell hath NO fury by Logic+and+Reason · · Score: 3, Informative

    Even the most hardcore libertarians want the government to at least provide for a common defense.
    I don't know where you got this idea, but "the most hardcore libertarians" are anarchocapitalists, and do not want any government at all.
  12. Fuel Tax is Voluntary. by __aazpqo4999 · · Score: 1, Informative

    Since fuel has a voluntary tax attached to fuel, you can choose to not buy any. This man cannot legally be fined since he chooses a fuel not already taxed.

  13. Re:No mistake about it. by jgc7 · · Score: 4, Informative
    The parent comment is nothing more than a troll.

    From the article, The state Department of Revenue, which fined Teixeira, has asked legislators to waive the $2,500 bond for small fuel users. The department also told Teixeira, after the Observer asked about his case this week, that it will compromise on his fine.


    So Big Brother has asked Big Brother to fix a stupid law. Big Brother is also willing to compromise on Big Brother's cut. Seems pretty reasonable to me.

    --
    70% of statistics are made up.
  14. Re:Regardless by the_tsi · · Score: 5, Informative

    For those who missed further intricacies of the above joke, (former) NASCAR driver Rusty Wallace (who, along with most other NASCAR teams, is/was headquartered just outside of Charlotte, NC) was fined $5000 for an infraction during a race in 1997. He paid the fine in pennies delivered to the NASCAR officials in an armored truck -- during the next weekend's race, no less, in an attempt to turn it into a PR stunt. (It worked.)

  15. Re:Ask a long-haul Trucker about NC taxes! by philipgar · · Score: 3, Informative

    Uh, I'm pretty sure the taxes are there to help build the roads that people are driving on. As cars get more enviornmentally friendly, the states will need to start finding new ways to tax them for using their infrastructures. Roads aren't exactly cheap to build you know, and maintaining them isn't cheap either.

    Phil

  16. Driving on public roads using untaxed farm fuel .. by lvcipriani · · Score: 3, Informative

    This is nothing new. Fuel for use in vehincles on farms does not have road tax applied to it. If you drive on public roads using that fuel you will be fined if caught. This is just special pleadiing that since it's vegetable based fuel he shouldn't have to pay road tax. Wrong. He gets to pay road tax just like the rest of us, or don't use that fuel on public roads.

  17. Re:Ask a long-haul Trucker about NC taxes! by JDevers · · Score: 2, Informative

    I live in a state that does something similar (Arkansas), but you have grossly misrepresented what they actually do (here at least). Sure they have checkpoints at the weigh stations but they also carry around equipment to check trucker's tanks for taxed gas. The point though is they are checking for taxed gas from any state, they don't care where it was bought. Fuel bought for off road purposes is not taxed (say you own a large farm, tractors are very fuel inefficient and there is no reason to pay road taxes for something that will never drive on the road), but it is illegal to then sell this fuel to truckers for on-road use. THIS is what they are checking for. Fuel sold as off road only has an additive added that is easily detectable.

  18. Re:Ask a long-haul Trucker about NC taxes! by cjb-nc · · Score: 2, Informative
    Perhaps this article sheds some light on the truth of the situation:
    Source: http://www.landlinemag.com/Archives/2006/Jul2006/n ews/fuelish.htm

    Consider this: You're driving a route that takes you through both North and South Carolina. On May 31, the price of fuel in North Carolina was $2.839 per gallon, while in South Carolina it was $2.738 per gallon.

    When just looking at the pump price, instinct tells you that you're going to save more money by fueling up in South Carolina, instead of North Carolina. But, the base prices tell a different story.

    North Carolina collects a total of 30.2 cents per gallon in state taxes. South Carolina collects a total of only 16.8 cents per gallon in state taxes.

    North Carolina charges 29.9 cents per net taxable gallon for IFTA miles driven in the state. South Carolina charges only 16.0 cents.

    It's still tempting to buy fuel in South Carolina - lower pump price, lower state taxes, lower IFTA obligations. But is this the best buy for you?

    If you run more miles in North Carolina than you do in South Carolina - yet you continually fuel in South Carolina, you are shortchanging the taxes paid and may very well not have enough at the end of the quarter in your account to cover IFTA taxes in North Carolina.

    If you don't mind writing a check - one that could be a sizeable IFTA payment - then your decision to buy the cheaper fuel worked for you. But what if you could have a refund each quarter? How could you accomplish this?

    It's simple. In this example, you would buy more of the high-tax fuel in North Carolina. Sure, it's 10 cents more per gallon at the pump - but North Carolina also charges 13.9 cents more than South Carolina in IFTA taxes. Buying the high-tax fuel will actually help cover your IFTA obligation and could go a long way toward a refund each quarter.

    Seasoned truckers have also tapped into one other neat little trick when deciding on buying fuel in a high-tax state or a low-tax state - competition.

    The closer to the state line you get in a high-tax state that neighbors a low-tax state, more than likely you will see the pump prices starting to decline. Just because a state is charging a high tax doesn't mean retailers won't lower their pump prices just to draw in traffic. Truck stops are not going to give up business to another state if they can help it.

    Once free-market competition comes into play, you could see the difference between North and South Carolina's pump prices drop by several cents per gallon. That leaves you buying high-tax fuel, with a lower base price which, in turn, pads your IFTA account, but saves money in the long run.

  19. Re:Many states fine you for driving with heating o by thejynxed · · Score: 2, Informative

    The entire problem with what you propose, is that in the USA, 25 mpg is the current fuel economy standard. Good luck finding any car here that gets your 46 mpg average. All of the car manufacturers claim it is too hard or impossible to manufacture 30+ mpg, let alone 40+ mpg vehicles for the USA. Senator Dianne Feinstein has recently submitted a bill that would require 30+ mpg average fuel economy by 2010, and 1 gallon per year after until 2020. She calls shenanigans on all of the car companies that can manufacture cars in Canada, Australia, Europe, Asia and even Africa that get 35 or more mpg, and are making them right now, but claim they can't do it here. She's right.

    Also, you aren't even allowed to import any of those aforementioned vehicles into the USA, unless you are immigrating to the USA and already own one. All sorts of taxes, regulations and whatnot to make quite sure of that.

    You should try looking up how the Brazilians do it. Sugar cane ethanol. They have trucks, let alone cars, there, that have been recorded at 46-75 mpg. Then read up on why the USA charges an exorbitant import and production tax on cane sugar, and cane sugar ethanol, to the point that you lose money on every drop of that particular flavor of ethanol that you would import or produce domestically, so that a gallon of sugar cane ethanol is more than four times the cost of a gallon of oil-based gasoline. The cost to manufacture, from seed to distilling into ethanol, costs quite a bit less in energy and dollars than it does to even pump a full tank of standard gasoline into the tank of an average SUV (let alone produce it). You'd almost think that the oil companies through their purchased government representatives might have had a say in those import taxes on cane ethanol eh?

    --
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  20. Re:Changes to the law in the UK by Gordonjcp · · Score: 2, Informative

    The only info I have at the moment is from a mailing list I'm on, and there seems to be a *lot* of debate on the biofuel forums and lists on exactly what this means. It's probably worth joining one of the forums or lists for the most up-to-date information.

  21. Re:Many states fine you for driving with heating o by simm1701 · · Score: 2, Informative

    I'm used to petrol prices in the uk - about 90p per litre right now, which works out about $6.50 per US gallon.

    Most of that is tax.

    The American car market is very different to the rest of the world - the scenic (and as large I was meaning the largest within its range as there is more than one model) is a very comfortably sized family car - most family cars here have very good fuel economy.

    The cars with poor economy are not the large family cars, its SUVs, some sports cars and luxury cars with over sized engines. SUVs are unnecessary in the UK in almost all areas - especially cities, the other cars are expensive. If you want to pay so much for your car then you can pay for the fuel to run it - and the tax on that fuel.

    No one is forcing people to drive such cars - and a pay as you spend system of tax is far fairer than a pay as you earn.

    As for me? Well the last car I had was an older, larger car. A volvo S80, still does far better to the gallon than most US cars.

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  22. Re:Many states fine you for driving with heating o by Silentknyght · · Score: 2, Informative

    While this is the first time I've heard of a fine for using biodiesel, there are a lot of states that will fine businesses and sometimes individuals for using home heating oil instead of regular diesel. It's the same reason - highway taxes - and they don't whine about "level playing fields", they just say they want the money. There isn't much difference between some grades of diesel and heating oil - diesel may or may not have some additives in it, and some states will put colored dye in them so you can tell them apart and bust gas stations that sell heating oil as diesel. I am an environmental engineer (IAAEE). Depends on the "differences" to which you are referring. EPA has a list of emission factors for all sorts of combustion ( http://www.epa.gov/ttn/chief/ap42/index.html ). Fuel (i.e. heating) oil comes in multiple grades and is not as clean-burning as diesel. Therefore, it's likely that the fine for using fuel oil instead of diesel is due to violating the terms of their air permit (it's very common for permit conditions to specify/limit fuel types).


    For many pollutants, using a grease/oil like vegetable oil is actually LESS polluting than using fuel oil or diesel, and for some pollutants, it's on a similar clean-burning level to natural gas. IIRC, grease/oil will emit a higher amounts of particulates (i.e. soot) but lower amounts of nitrogen oxides and carbon monoxide (versus fuel oil/diesel).

  23. Re:Sales tax isn't regressive by jtcm · · Score: 3, Informative

    Sales tax is regressive? How so? If my consumption goes up (i.e., I'm rich), then I pay more tax.

    Sales tax is regressive because if you are poor, sales tax is a greater percentage of your income (i.e. a greater burden) than if you are rich. While you may buy more goods total if you are rich, the percentage of sales tax stays the same.

    For example, say there are two people buying a car, Richard (who is wealthy) and Paul (who is poor).

    Richard makes $300,000 per year
    Paul makes $20,000 per year

    Richard buys a car for $60,000 and pays 5% sales tax, or $3000. This is 1% of his income.
    Paul buys a car for $20,000 and pays 5% sales tax, or $1000. This is 5% of his income.

    Even though Paul spends $40,000 LESS on his cars, he's still paying 5 TIMES the percentage of his income. $1000 for Paul is 5 times the burden that $3000 is for Richard. Do you see why sales tax is regressive?

    In contrast, federal income tax is progressive because the percentage increases as your income increases.

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  24. Re:Many states fine you for driving with heating o by Brandon30X · · Score: 2, Informative

    Uh, farmers do have the ability to buy untaxed fuel. The fuel is dyed so that it can be checked if used on public roads. In fact that is probably what the checkpoint from TFA was for.

    -Brandon

    --
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  25. Re:Sales tax isn't regressive by Firethorn · · Score: 4, Informative

    You're forgetting that Richard eats out while Paul eats at home*. That Richard spends $100k on clothes a year while Paul pays $300/year for his clothing. That Richard goes to the dealership for his maintenance while Paul does his own for the most part. And wtf is Paul doing buying a car costing a whole year's income?

    Using just the car is a bad example. First - it's not an annual purchase.

    We have the issue where 'rich' is more a statement of assets available more than it's a statement of income. Sure, if you make a million bucks a year you're 'rich' - But we still have 'millionaires' declaring bankruptcy. A large income helps, but it's not a guarantee. Just look at comparative debt loads.

    Now, by the arguement that Richard is likely NOT spending all of his money while John is, would be an arguement that the sales tax is regressive. Still, if Richard goes hog wild while John is a careful spender, Richard can still end up paying a higher percentage of income as sales tax vs John.

    Look at it as an encouragement to save. Which is a good thing.

    *Restaurant food is generally subject to sales tax, while food from a market generally isn't.

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