OT truck fuel tax exemption

INCase

Well-known Member
Question. Many fuel stations post a "tax exempt" price for diesel. This is often lower than the "regular" price. Who qualifies for this price and how do you get it.

Thanks.
 
Sounds like the off-road price. In truck stops, it's usually used to fuel reefer units. Otherwise it's for off-road use only, and is dyed. You don't want to get caught with dyed diesel in your vehicle's tank.
 
Around here it is pretty simple. You take a can or cans or even a tank in the back of your truck. Then pull up to the tax exempt pump and pump it in. Just make sure you don't go home and pour it in a vehicle for on road use. That fuel will be dyed red. It has the road use taxes taken off the price. You will still be paying sales tax. That fuel is intended for off road use. As far as it is "often lower" around here it is always lower. That is the only tax exempt fuel around here.
 
Offroad fuel is also legal for use in boats.
And for gasoline burned offroad you can file and get the taxes back.
 
In Oregon Diesel is free of state tax for commercial vehicles as these are taxed by mileage. You have a counter on a wheel that tells how far you drove.
Walt
 
The thumbnail sketch is "tax exempt" AKA "untaxed" fuel is for anything NOT licensed to be used on a public road. "Un Taxed" means there is no road use tax on it and is dyed red. I'm pretty sure there is still sales tax on it. Don't get caught running untaxed fuel in a vehicle licensed for the road. The DOT, in Iowa anyway, checks diesel powered vehicles for red fuel. They might check your tank at a scale, or they may pull you over and check your fuel as part of a roadside inspection. At one time it was a $10,000 fine per instance plus the amount of road use tax as charged per gallon of fuel capacity per vehicle.
Around here I'm told they look for pickups with large diameter tailpipes, especially when they see one hauling a trailer with machinery on it.
 
A couple of years ago I saw a service truck for a logging company pulled up at an off road pump and the driver let a bunch of red fuel spill out while he was putting it in the truck. if a weigh man had ridden by while he was doing that he would have had a nice fine.
 
If you are in Indiana the fuel tax is paid quarterly by heavy trucks. You have to have a motor carrier number and ifta sticker. You have to file your miles and fuel used every quarter. Then you divide your miles driven by your quarterly fuel mileage and pay so many cents a mile for the fuel THEN they make you pay it again as a surcharge. It is not a cheap or a good solution. It isn't off road fuel it is just for semi trucks. It is a archeic invention that I allways hated. I never bought fuel in Indiana because of it.
 
I did a little more research. I think with a DOT # and or a sales tax exemption you don't have to pay the sales tax on the fuel. Similar to farmers buying say, baler twine or roundup tax exempt.
 

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