Illinois man gets "busted" by revenuers for veggy oil car, interesting read.

LOGDOG · March 03, 2007, 10:49:49 AM

FarmerDoug,

Are you able to provide a link to where it says 400 gallons per quarter or 1600 gallons per year? That would be most helpful. Not that I currently run biodiesel, but it is an interest of mine. When I read the article I spoke of (last year) it stated 1100 gallons. I'll see if I can find it. Yours is better though without a doubt. Hope you can provide a reference. That would be great.

LOGDOG

LOGDOG · March 03, 2007, 11:05:43 AM

Here is some info I found. Notice the links to the IRS.GOV website. Interesting reading. Taken from a discussion on bio-diesel and road taxes. And I quote...

"USA BD Tax Laws
After hearing about bio-diesel taxes, I started looking around the net and the IRS's website to see what taxes are imposed on BD. According to IRS publication 510 ( http://www.irs.gov/publications/p510/index.html ) there is a $0.244/gallon tax on BD fuel above 400 gallons per year, but on publication 378 ( http://www.irs.gov/publications/p378/ar01.html ) there is a refund on methanol used to make BD for $0.50/gallon. Meaning the IRS will pay you $0.256/gallon to make BD, right? I haven't finished reading all the off shoots for these publications (instructions for form 720, etc), but if I'm interrupting these documents correctly the US government will pay you to make BD."

LOGDOG

Tom · March 03, 2007, 02:28:27 PM

I didn't think the use of Methanol in the production of Bio-diesel was gal. per gal.

Don_Papenburg · March 03, 2007, 11:29:02 PM

Yep, My understanding is that the methanol is used to "wash" the bio and most is recovered and reused for the next batch.

OneWithWood · March 05, 2007, 02:40:27 PM

Actually methanol is used as a carrier for the lye catalyst. Useage is generally about 22% by volume and can be mostly recovered with further distilation of the glycerol by-product. Water is used to wash the bio diesel to remove residual soaps in most processes.

Murf · March 05, 2007, 02:44:32 PM

Here in Cannuckistan they have a really foul twist to fuel taxes. >:(

They 'stack' the taxes, for instance, there is a Federal Exise tax on all fuel produced or imported, then on top of that is a set (Federal and Provincial) of road taxes, and then on top of all of that is the Federal sales tax called the GST (affectionately known here as the Gouge & Screw Tax).

So, in the end (pun intended ;) ) you are paying a tax on the tax which then taxed...... :

We also have some screwy twists in the road tax column too, for instance, you can run off-road gasoline or diesel in a tractor, or a bulldozer, but not in a boat or an ATV or snowmobile. Clear as mug huh?

BigTrev · March 05, 2007, 03:09:06 PM

We call it 'Government Suction Tax' :D

Ron Wenrich · March 05, 2007, 05:01:50 PM

Our income taxes at the state and local level are the same way. Its a flat tax with no deductions. So, we are paying tax on our federal and FICA taxes, real estate taxes, sales taxes, etc.

olyman · March 21, 2007, 10:25:21 PM

logdog--i used to have the link--but after a few to many crashes---------------its 400 gal per qtr--per driving member of the household-----fed exempt--NOT STATE!!!!!!!!!!!!!!!!!! thats were their getting the illinois guy--personally--if people were careful who they said what to---and i agree with the one person said to shoot those gestapo tax agents--id said nearly all of them have a agenda-----

Don_Papenburg · March 22, 2007, 10:46:55 PM

OWW , Will bio D burn without washing /removal of the glyceral . I was thinking like in a heating stove not internal combustion. My idea was to squeeze some canola oil and just use that to heat with insted of propane . But it would be nice to not have to do all the extra work.

OneWithWood · March 23, 2007, 11:20:29 AM

Don, check out this site

http://groups.yahoo.com/group/altfuelfurnace/

You can burn straight veg oil after modifying the oil gun of your furnace, you can burn prewashed bio-d also but it may be hard on your equipment. Washing is more time consuming than labor intensive. Well washed and dryed bio diesel gives the best performance with the fewest hassles overall, IMHO.

Don_Papenburg · March 24, 2007, 09:13:44 AM

Thanks One WW ,
I was wondering if it would burn without the extra steps. I used to have a no1 diesel burnner that just had a float and a burner pan that held a small amount of fuel and was lit then as the fuel burned off more was let in . when heat was needed the fan would kick in andthe burn was faster and hotter. real simple and I was thinking of something like that . I would grow canola ,harvest ,squeeze , and then heat and relax. One could hope . I was thinking of less equipment to mess with.

slowzuki · March 26, 2007, 04:11:56 PM

Swampy you're doing pretty good, I was assessed this year for 400$ on a half finished pole barn/shop with no walls, no heat, no phone, etc. The lumber is all sawed from my own property too. On top of that, they don't even have the address right on the property :D I want my 5$ assesment fee back!
Ken

Quote from: SwampDonkey on March 02, 2007, 05:19:08 PM

See this highlighted line? The government has gotten away with so much over the years, they have added this little nickel and dime item. It's called an assessment fee. You'd think the property tax would be paying the assessment costs wouldn't you? There are a lot of these nickel and dime fees that people pay and not even aware of them. If you question it they say it's a cost of assessment. You say, that cost is in your assessment. They repeat the same line like a broken record. :

SwampDonkey · March 26, 2007, 04:29:51 PM

$5?!?

>:(

If you have any camps or sheds on the back on your woodlot, just keep your mouth shut.

My woodlot tax is less than $30 ;D :D

OneWithWood · March 27, 2007, 10:19:54 AM

Our county has ways to spot those little sheds. They start out with the latest aerial surveys and go from there.

Big Brother is definately watching and there is no place to hide

SwampDonkey · March 27, 2007, 11:02:58 AM

They have GIS and Orthophotos, but most of these assessors wouldn't know how to use it or how to interpret what they see. My cousin is an appraiser for the government. They know the leased land if it has a camp, but not likely to know on private unless the word got out or if it's a 1/2-5 acre lot along a public road. ;D

slowzuki · March 27, 2007, 12:23:54 PM

Luckily my father has access to the aerials for our area too and they are about 10 years out of date. They got his garage from aerials back a while though.

Quote from: OneWithWood on March 27, 2007, 10:19:54 AM
Our county has ways to spot those little sheds. They start out with the latest aerial surveys and go from there.

Big Brother is definately watching and there is no place to hide

SwampDonkey · March 27, 2007, 05:24:51 PM

They most likely got the garage from just driving by. My cousin gets send out at different times to reassess properties. He was up this way back about 2004. I got a paper this summer from an appraiser left on the front steps. I filled it out and sent it in, taxes didn't change. I'll probably get a $200 rebate. ;D