Community Forums

mikron · 01-06-2012, 03:31 PM

Saw a sign at a gas station in town, what is it.

Tha_Rooster · 01-06-2012, 03:33 PM

Tractor diesel no road taxes.

Elkhartjim · 01-06-2012, 03:50 PM

Its fuel to be used for agricultural usage only. I have a 250 gallon storage tank at our country place and use that fuel only in tractors and other diesel fueled equipment. With a state provided permit, I can purchase fuel less all taxes which is currently about $0.40 per gallon. The fuel has a dye additive and you best not be caught using it in your diesel dually (or motorhome) even if you're running farm plates hauling a cattle trailer.

RickO · 01-06-2012, 04:06 PM

Quote:

Originally Posted by Elkhartjim

The fuel has a dye additive and you best not be caught using it in your diesel dually (or motorhome) even if you're running farm plates hauling a cattle trailer.

You bet. My FIL lives in rural Minnesota and tells tales of his neighbor being pulled over and having the LEO run a tube in his tank... pulling out dyed fuel. It was a very expensive 40 cents/gallon that he saved.

Rick

Pigman1 · 01-06-2012, 04:16 PM

Off road fuel is just that, for use off road. They take off the tax and add the red dye. It isn't restricted to just diesel fuel. We also used to use off road (untaxed) gasoline for numerous uses on the farm. Pumps, stationary engines, generators, garden and lawn equipment, boats, and anything else you can run that doesn't go on the road. Like the man said, just don't get caught with it in your road machine. Believe the fine is in the neighborhood of $10K. Getting a tax free permit for gasoline is harder in some states than others. Some states allow you to sell it in local service stations, but my state required tax returns to substantiate the business and claim for use of the gas.

mikron · 01-06-2012, 04:21 PM

Ok, thanks for that. We live in a farm county but sign was in the city at a gas station.

freebirdbus · 01-06-2012, 06:31 PM

That's why I have two tanks, if anyone asks, the tank with the red fuel in it is "for my generator"

Elkhartjim · 01-06-2012, 06:53 PM

Quote:

Originally Posted by freebirdbus

That's why I have two tanks, if anyone asks, the tank with the red fuel in it is "for my generator"

Too funny. Unless that fuel tank is connected to a generator that is suppling power to something like a water pump thats irrigating a field you'll be out of luck in Texas. Maybe our enforcement officers aren't as naive as other states.

Ray,IN · 01-06-2012, 07:04 PM

My on-road diesel fuel tanks all have a locking cap. Probable cause is the only way an enforcement officer can legally make me remove the cap. When they do have/show cause, I'll remove the cap so they can find clear diesel fuel. I'm not much of a gambler.
There is supposedly another method to discover the burning of dyed diesel fuel. Something about swiping the tail-pipe residue.I've never read a first-person account of that though.

wa8yxm · 01-06-2012, 07:15 PM

Diesel fuel for ON-ROAD use is taxed by assorted governments (Federal and state) and dyed to indicate the tax has been paid,, OFF ROAD is for use in tractors, construction equipment, generators and other uses OTHER than movin' on down the road. If you segregated your fuel supply to the generator it would be legal in that tank, but NOT in the RV's tank.

Not all states do it that way.. Where I grew up, far as I know, we bought regular diesel and filed for a refund of tax paid at the end of the year (That was my mother's job, she was one very skilled accountant, in fact at one time here in the state of Michigan and half a dozen surrounding states she was the only woman to head an accounting department in a coed company and the only female officer (and one of very few members) in the local chapter of the national association of accountants! One rather impressive woman, which has to do with the way I look at women today.

Elkhartjim · 01-06-2012, 07:33 PM

Quote:

Originally Posted by wa8yxm

Diesel fuel for ON-ROAD use is taxed by assorted governments (Federal and state) and dyed to indicate the tax has been paid,,

I've bought diesel all over the US and the only place I've bought dyed fuel (that I'm aware of) is at my farm in Texas for off-road use. Are you saying I've been buying dyed diesel in other states and not knowing it? Our diesel is dyed red for off-road use. What color diesel are you buying?

freebirdbus · 01-06-2012, 07:41 PM

An End User Signed Statement Number authorizes the tax-free purchase of only dyed diesel fuel for use in off-highway equipment operated in
Texas for non-agricultural purposes. Non-agricultural purposes include diesel fuel used by forklifts, loaders, welding machines, space heaters or generators.

Off-Road diesel fuel use, like in this Texas?

Ray,IN · 01-06-2012, 09:27 PM

wa8yxm I think you have that backwards. On-road diesel is not dyed, off-road diesel is tainted with red dye. The amount of on-road diesel sold would make adding dye more expensive for the distributor vs off-road quantity sold.

The journalofaccountancy.com explains everything.

RustyJC · 01-07-2012, 04:09 AM

Quote:

Originally Posted by Ray,IN

There is supposedly another method to discover the burning of dyed diesel fuel. Something about swiping the tail-pipe residue.I've never read a first-person account of that though.

Supposedly there's now a "marker" in the dye added to off-road diesel that allows the revenuers to detect the presence of the marker immediately with a tailpipe probe from the residue inside the pipe. Although I don't frequent such sites, I'm told this is done routinely at farm equipment and livestock auctions and other such gathering places for Farm Trucks here in Texas. A locking fuel cap isn't gonna help if this technology is used.

And, yes, it's the off-road diesel that's dyed - thus, the nickname "red diesel" for the off-road fuel.

Rusty