Randy.
You are correct railroad are exempt from state motor fuel tax for fuel used
in off road equipment (anything that does not run on the hiway). But from
there on your reasoning is all wrong. The idea behind "dyed" fuel for off
road use and "clear" (on dye) for hiway use so it can be kept separate for
tax accounting reasons for the government. It makes no difference if you buy
"clear" diesel for a truck to run on or to start a brush pile on fire or put
it in a diesel locomotive you will be charged state motor fuel tax because
it is "clear" fuel. Now if you buy "dyed" diesel fuel you can use it for any
reason but just do not use it in a vehicle used for hiway use, the fines are
very expensive when you get caught.
The supplier must keep track of gallons of "clear" and "dyed" that he has
bought and sold separately. He (supplier) collects the motor fuel tax from
the buyer at time of the sale. Once a month the supplier must send into the
state a statement of gallons sold "clear", along with the amount of motor
fuel tax collected, and the amount of "dyed" gallons sold. When an audit is
done the amount of gallons w/tax and gallons with out/tax, amount of tax
monies paid must all come out.
Like I said in my first post I work for a fuel supplier for 13 years so I
am not just shooting in the dark. I have delivered quite a few gallons to
the UP railroad. What was to be used for their equipment was "dyed" and no
motor taxes were charged. What I delivered to them that they used in their
trucks was "clear" and they did pay motor fuel tax on those gallons.
I know this might sound rather confusing but blame it on the governmental
people who were afraid that they were not getting their fair share of motor
fuel tax on diesel fuel.
This is the last post I am going to post on this subject and I do not want
to start a flame. So I am going to say it one more time.....If "clear"
diesel fuel is bought you will be charged state motor fuel tax! If "dyed"
diesel fuel is bought no motor fuel tax will be charged!
Myron Dudenbostel
----- Original Message -----
From: <milepost206@mchsi.com>
To: <CBQ@yahoogroups.com>
Sent: Tuesday, February 03, 2004 10:01 PM
Subject: [CBQ] Fuel Dye
> Hi Myron & Bill,
>
> The railroads are exempt from motor fuel tax in every state I know of
> and since rr diesels are not motor vehicles, they are exempt from the
> accompanying dye additive that is placed in diesel fuel for motor
vehicles.
>
> Randy
>
>
>
>
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