Originally posted by SFRT - Frenchy
I already paid for 2007. What kind of taxes am I looking at with the diesel?
he was referring to the homemade biodiesel and SVO. according to the law in some states you owe a road tax per gallon even if it isn't gas or diesel.
after reading up on some tax forms I've found if you do use so called "green technology" and/or take tax credits. you have to fill out other forms to compute other taxes you will owe (you are going to pay taxes one way or another).
on home brewed fuel, there can also be an escrow type of thing tax withholding or bond of $2500 just to home brew road fuels. in some places for electric vehicles, they do the road tax by the mileage.
you might even owe the Feds as well for biodiesel and SVO. I haven't really looked into it on the Federal level yet, State (NC) level is too much of a hassle here. but in the case of making your own alcohol for fuel (Fed level), theres a whole lot of crap to go through to get it legal to distill your own.
for regular diesel pumped at a filling station the taxes are paid at the pump. unless it is listed for off road use only, or K-1 kerosene. if you are caught using non tax paid fuels like off road use only or K-1 kerosene, well lets just say you'd rather just paid it (taxes) in the first place.