Off Road Diesel

[stuckmotor]

After reading about the farm sales tax exemtion, it sounds like your store owner was letting you slide on two kinds of payment. I don't think I get a sales tax exemption on diesel, but I might. Like you say, the road tax and sales tax on what you'll run trough a B9200 isn't worth much drama.

 

[Jim Timber]

If you're driving your tractor as a mode of transportation, then you'd need to pay for on-road fuel. If you're driving it as a means of getting the fuel to the tractor, then it's off-road equipment and exempt from the road tax; at least that's how it is here in MN. Same thing with towed equipment - if you can hook it to the truck to pull it (like a wood chipper), then it's not a trailer and not taxable. If you put it on a trailer and pull the trailer to move it, then the trailer needs to pay tax (tabs).

I can think of much better uses for my time than driving at 19mph 8 miles to the closest gas station on my tractor.

 

[square1]

There's two levels of tax exempt here. Road tax exempt (but you pay sales tax), i/e Off Road fuel, and sales tax exempt, i.e Farm Use fuel (which is also road tax exempt). You have to sign a form for the 2nd one.

 

[varmint]

A possible third solution is to do what I have done... when we get heating oil delivered, I put out a couple of 5 gallon jugs, and the driver fills them for me. The price is usually the same, or less, than the ORF- it was $1.74 last week. Make sure that your heating oil is the same as off road diesel, of course, which it is from this guy. Easier than hauling cans to the gas station.

 

[jenkinsph]

I don't bother with tax exempt issues and buy highway diesel for my tractors. I do write off all fuel purchases against the business and that is close enough for me. The fuel is always fresh and filters last a long time.

If I were running high hp machines that might need revisiting.

 

[rd_macgregor]

Several gas stations here have installed heating oil pumps. Yesterday I filled two 20-liter fuel cans with heating oil. Road diesel is about $1.03/l whereas the heating fuel was about $0.65/l, so I saved $15 (CD$). After several years of using heating fuel, so far I haven't noticed any difference in the way my tractor performs.

 

[Gary Fowler]

I guess I have been lucky to escape any drama. I get bulk red diesel delivered at no charge as long as I get 150 gallons at a time. NO TAXES and no hassle. I have never been asked to sign any papers regarding farm use either.

 

[JRobyn]

In TN, fuel dealers (and Tractor Supply) ask for your "tax number" (Certificate of Exemption From Sales And Use Tax For Tennessee Agricultural Exemptions). I assume this is because the state requires them to record it for off-road fuel sales. Seems reasonable to me.

Our local off-road dealers ask for it one time and record name and number in a little log book. TSC keeps it in their computer with your phone number.

 

[RPW]

Texas you need to full out a form and submit it to the state. They issue you a number. Unfortunately they quite allowing individual Service stations from selling ORD and you have to go to the distribution point to get it or have it delivered. At some point I'll get it delivered but for now I just take my 55 gallon drum and get it filled.

 

[Howling]

A possible third solution is to do what I have done... when we get heating oil delivered, I put out a couple of 5 gallon jugs, and the driver fills them for me. The price is usually the same, or less, than the ORF- it was $1.74 last week. Make sure that your heating oil is the same as off road diesel, of course, which it is from this guy. Easier than hauling cans to the gas station.

My heating oil supplier won't fill 5 gallon cans. Said pump speed is too fast. Have overflowed cans and made a mess when they tried it.