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LABryan

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Posted on Tuesday, September 06, 2005 - 7:27 pm:   

Check out this e-mail from California State Board of Equalization re (temporary) legal use of off-road diesel in on-road applications. Check the link to IRS as well. This is offered FYI. Let's not create artificial demand during this time of apparent shortage, but those actually on the road may be able to take advantage of this rollback without guilt.


From: NewsFromTheHonorableJohnChiang [mailto:NewsFromTheHonorableJohnChiang@boe.ca.gov]
Sent: Tuesday, September 06, 2005 1:58 PM
Subject: State Board of Equalization Release: Chiang Announces Fuel Tax Relief in wake of Hurricane Katrina
Importance: High


FOR IMMEDIATE RELEASE

NR#: 59-C

Date: September 2, 2005

Contact: Anita Gore

Communications Office(916) 327-8988

Website: http://www.boe.ca.gov

<<59-c.pdf>>

CHIANG ANNOUNCES FUEL TAX RELIEF IN WAKE OF HURRICANE KATRINA

John Chiang, Chairman of the California State Board of Equalization (BOE), in response to shortages of clear diesel fuel caused in part by Hurricane Katrina, announced that the BOE will not impose a tax penalty when dyed diesel fuel is sold for use or used on the highway. This relief applies immediately, and will remain in effect through September 15, 2005.

"In a time when people are suffering through the consequences of Hurricane Katrina, this is one way the BOE can offer some assistance by increasing the diesel fuel supply for use on California's highways," said Chiang.

This penalty relief is available to any person that sells or uses dyed diesel fuel for highway use. The relief is available only if the operator or the person selling the fuel pays the state diesel fuel excise tax of 18 cents per gallon.

The Internal Revenue Service (IRS) has adopted the same period for relief from federal penalties imposed on the sale or use of dyed diesel fuel on the highway. For more information on the IRS relief policy see id=147221%2C00.html,http://www.irs.gov/newsroom/article/0,,id=147221,00.html

Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses exempt from excise tax, such as farming purposes, construction activities, and for or others who use the fuel off-highway.

If you have questions about this notice, or require assistance in remitting the excise tax on dyed diesel fuel, please call the Fuel Taxes Division at 916-322-9669 or toll-free at 800-400-7115 (follow the prompts to fuel taxes). Staff is available to help you weekdays from 8 a.m. to 5 p.m, except state holidays.

Chairman John Chiang, of Los Angeles, was elected to his first term as Fourth District Member on the State Board of Equalization in 1998, and re-elected in 2002. He was named Chair of the Board in December 2004. He also presided as Chair in 2002.

The five-member Board of Equalization is a publicly elected tax board. The Board collects more than $44 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and plays a significant role in the assessment and administration of property taxes.

Other Board Members include Betty T. Yee of San Francisco, Acting Member, First District; Bill Leonard of Sacramento/Ontario, Second District; Claude Parrish of Long Beach, Third District; and State Controller Steve Westly.

Bryan
Jim Stewart (H3jim)

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Posted on Tuesday, September 06, 2005 - 8:09 pm:   

So how much savings is that if you still have to pay the .18 a gal tax?

I wonder if I fill up now, and that pesky red dye hangs around in my tank for years, even after many dilutions, do I need to keep my reciept for it with the bus for a long long time so as not to run afoul of those nasty penalties?
Jim Stewart (H3jim)

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Posted on Tuesday, September 06, 2005 - 8:25 pm:   

I just checked the references and it appears that there is not reduction in price or taxes, they still all have to be paid. Its just that you can buy and use the red dye without penalties.
LABryan

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Posted on Tuesday, September 06, 2005 - 9:19 pm:   

Jim is right. This may only serve to make more fuel available for on-road use, but may not affect the price/tax to be paid at all. And the issue raised about the residual dye is valid. This may well be more trouble than it's worth. It may help out in areas where there are acute shortages of on-road fuel, but buyer beware!

Bryan
Jim (Jim_in_california)

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Posted on Tuesday, September 06, 2005 - 10:27 pm:   

Especially for recreational users who don't go through all that much diesel! I would bet the average person here only refills their main tanks once or twice a year. People still building theirs, less than that! Commercial haulers are doing so once or twice a week. Huge difference. I would really think twice before loading up on dyed fuel unless you're a fulltimer doing a lot of travel.
bobhb

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Posted on Wednesday, September 07, 2005 - 10:08 am:   

I changed the fuel filter on my generator last week and found red fuel.The only place I have fueled at was a pilot in Adalanto Ca and 76 in Huntington Beach 2 months ago.?????
Loren Bailor (Lbailor)

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Posted on Tuesday, September 13, 2005 - 9:00 am:   

How likely is a bus conversion to be inspected for red fuel?
Richard Bowyer (Drivingmisslazy)

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Posted on Tuesday, September 13, 2005 - 10:13 am:   

I have been told that they have sniffers that can detect the red coloring in diesel fuel exhaust as you are driving past. I do not know this for sure as I have never seen it. If they do not have it, it would certainly be the method of checking for improper fuel.
Richard
R. Steve Nichol (N4rsn)

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Posted on Tuesday, September 13, 2005 - 12:25 pm:   

has anyone on this board been checked? I have been courious about how much they check???
Steve
John MC9

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Posted on Tuesday, September 13, 2005 - 8:08 pm:   

.... ..

This topic has been on the board quite a few times. So far, not
one person's said they were personally stopped and checked.
The guy that sells fuel oil out of his diesel tanks, is who they're
after; we peons can run olive oil, for all they care.

(oh-ooh..... here we go again!! Get ready..)

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