Minimum Purchase of Off-Road Desiel?

[PineRidge]

Around here diesel and home heating oil is one and the same. I helped pump out an old 275 gallon oil tank that was still in a basement where it was used to heat the home before the owners switched to natural gas. Guess what color the home heating oil was, <font color="red"> red. </font>

 

[MadReferee]

Die is ALWAYS added to home heating oil since no federal road has been paid on it.

Red fuel oil = no tax paid
Clear fuel oil = tax has been paid

That's the law of the land, and if somebody tells you otherwise then they are just blowing smoke. /forums/images/graemlins/shocked.gif

 

[Sully2]

</font><font color="blue" class="small">( Die is ALWAYS added to home heating oil since no federal road has been paid on it.

Red fuel oil = no tax paid
Clear fuel oil = tax has been paid

That's the law of the land, and if somebody tells you otherwise then they are just blowing smoke. /forums/images/graemlins/shocked.gif
)</font>

Same thing here! Clear diesel you can buy from a "gas" station or a diesel fuel truck depot...taxes paid on it. "AG" diesel and home heating oil...here is the same thing..( #2) and its dyed.

 

[Jimbrown]

Simply not true. Here in Arizona they sell the exact same fuel out of exactly the same pump. I fill my truck and pay for taxed fuel I then tell the guy I want tractor fuel and pump from exactly the same pump into my can I go inside he subtracts the tax. Same fuel same pump.

 

[Highbeam]

How about you fill a 100 gallon barrel with that clear, tax free, "tractor" fuel and then bring it home to fill your pickup. If not for the dye, this is what would happen and that is why the dye is used in tax free fuel.

 

[MadReferee]

The federal road tax is paid when the fuel leaves the bulk distribution center, ie. at the rack. It is included in the basic price that the wholesaler pays for the fuel. The tax has already been paid by the time the undyed fuel gets to the station. All fuel that has NOT been federally taxed MUST be dyed red before it can be transported from the distribution center. That is a federal law.

If the station owner is rebating you the federal tax from non-dyed fuel, then he is loosing money.

Now, state tax collection may be different depending on what state you are located in. My guess is that he is rebating the state portion of the fuel tax. The state fuel tax amount varies from state to state as do their collection rules. Your state may permit rebating at the pump, while mine doesn't.

 

[MadReferee]

One more thing.

The federal tax on undyed diesel fuel is 24.4 cents per gallon. The state tax in Arizona is 18 cents per gallon with an additional 8 cents per gallon carrier surcharge. That brings the total Arizona tax to 26 cents per gallon. So actually you are paying 50.4 cents per gallon tax on undyed fuel in Arizona.

Exactly how much per gallon are you being rebated at the pump?

 

[Jimbrown]

Hmmm don't really know you are probably right that they are only subtracting the Az tax. I have no idea where the closest fuel dist would be. Probably El Paso or Phoenix both are over 300 miles away.

 

[Scrounger]

Around me in PA, you have to buy off-road in quantities of 250 gallons or more. So for me, I can't even use it in the tractor. That is way more fuel than I'll use in a year or several for that matter.

 

[LBrown59]

</font><font color="blue" class="small">( Around me in PA,
you have to buy off-road in quantities of 250 gallons or more.
<font color="red"> you have to buy off-road in quantities of 250 gallons or more. </font> So for me, I can't even use it in the tractor. That is way more fuel than I'll use in a year or several for that matter. )</font>
<font color="red">Are you sure about that. </font>
I thought the minimum meant you couldn't buy less than that amount too until I found out the minimum has nothing to do with how much you have to buy.

I've been buying the more expensive on road diesel for 20 months before I found out I could have been getting the red diesel all along but wasn't because I misunderstood what the minimum amount thing was all about.