Stick it to OPEC, but pay the taxman...

[mechmike0034]

Thumbing your nose at oil sheiks can cost you in North Carolina. (http://journalnow.com/servlet/Satellite?pagename=WSJ/MGArticle/WSJ_BasicArticle&c=MGArticle&cid=1173351566923&path=%21localnews&s=1037645509099)


Bob Teixeira, a Charlotte guitar teacher, took a stand against U.S. dependence on foreign oil last fall and spent $1,200 to convert his 1981 diesel Mercedes to run on vegetable oil. He buys soybean oil in 5-gallon jugs at Costco, which costs him about a third more than diesel.

Despite his good intentions, the state fined Teixeira $1,000 for not paying motor-fuel taxes. North Carolina officials also told him that to legally use veggie oil here, he’d have to first post a $2,500 bond.

Such penalties have also been levied against other North Carolina drivers whose vehicles were powered by alternative fuels.

I understand the road tax, but it needs to be more equitable in instances like these. The NC legislature should address this by changing the law.

[Napoleon54]

WTF, so much for promoting the use of alternative fuels. :rolleyes:

I wonder if there are tax breaks that would offset his fines and the bond. What is the bond for, anyway?

[DarkFury]

Now that's total BS.... :2far:

Honestly, I just can't believe some of the stupid laws that are still on the books today.

I wonder how they caught him?

[mechmike0034]

I wonder how they caught him?

That's in the article. He was flaunting it, not that there's anything wrong with being proud...


Officials with the N.C. Department of Revenue noticed Teixeira last month near Lowe’s Motor Speedway while they were checking fuel tanks of diesel RVs for illegal fuel. The bumper sticker on his car that reads “Powered by 100% vegetable oil” grabbed their attention.

“It was like some twist of fate that put me there,” he said. “It was like I was asking for them to stop me.”

Off-road (non-road taxed) diesel is dyed a different color. Some truckers/motorhomers use it (illegally) to save money to the tune of almost .30/gallon in tax.

[mechmike0034]

What is the bond for, anyway?

I would imagine that any business that collects tax on behalf of the state (as would a fuel reseller) would need to be bonded.

Disclaimer: I am neither a lawyer nor an accountant, and I don't play either on television. The above statement is my opinion - nothing more or less. Take it for whatever it may or may not be worth to you personally.

[VTGreg]

I saw this in the Observer this weekend. Sounds like it was a bit over the top but I understand the intent of the law. Even though he is using alternative fuels to power his automobile, he is still driving on the state roads and those roads are paid for by tax dollars, most of which comes from taxes on gasoline.

There are ways, which were discussed in the article, to not have to pay the fine. The rub was that the state government doesn't do a very good job of letting the public know what needs to be done to be on the up and up.

[DarkFury]

I'm sure he still paid sales tax for the vegetable oil... so more or less, those taxes should be deducted from his penalty if they go forward with this.

[Napoleon54]

Off-road (non-road taxed) diesel is dyed a different color. Some truckers/motorhomers use it (illegally) to save money to the tune of almost .30/gallon in tax.

That's what I've heard as well... supposedly the dye in the off-road stuff is potent enough to be detected long after the offending fuel has been used up. Like several dozen tankfuls later, there's still enough dye to indicate off-road fuel was used at some point.

[VTGreg]

I'm sure he still paid sales tax for the vegetable oil... so more or less, those taxes should be deducted from his penalty if they go forward with this.

The 4.5% sales tax in NC pales in comparison to the taxes on gasoline.

[DarkFury]

The 4.5% sales tax in NC pales in comparison to the taxes on gasoline.
Hence my saying that it still should be DEDUCTED from the charged road tax amount. :D

I didn't say that he should be absolved from paying the tax. (similar to how some paid taxes are deducted from your federal income tax filing...)

[VTGreg]

Hence my saying that it still should be DEDUCTED from the charged road tax amount. :D

I didn't say that he should be absolved from paying the tax. (similar to how some paid taxes are deducted from your federal income tax filing...)

My bad. I glossed over the last part of the sentence.

Agreed. FWIW, this guy doesn't isn't against paying his fair share. He just didn't know the correct course of action and the complaint against the NC govt is that they don't make the information readily accessible.