http://www.wjla.com/news/stories/0905/256998.html

IRS Lifts Taxes on Some Diesel Fuel
Friday September 02, 2005 3:04pm


Washington (AP) - The Internal Revenue Service acted Friday to expand the nationwide supply of diesel fuel by lifting some excise taxes.The action allows diesel fuel intended for farm equipment and government vehicles to be used by commercial trucks and other vehicles without a special tax. The decision lifts federal excise taxes typically imposed when diesel is used outside of farm and government work.

"Today's action is a relatively simple and straightforward step that will immediately increase the available supply of diesel fuel nationwide, which is especially needed in Gulf Coast relief efforts," said Treasury Secretary John Snow.

Treasury Department officials said the possibility of reducing the federal tax on gasoline is not under active consideration in the administration. They said it would require legislation to reduce the tax.



Gasoline in some parts of the country has risen above $3 a gallon, triggering thousands of consumer complaints of price gouging.

Treasury Department officials said it was possible that some members of Congress might push for a cut in the federal gasoline tax to help ease the pain of higher prices, but they would not say which lawmakers might be considering the idea.

State officials started to consider whether to suspend gas taxes in their states. Georgia Gov. Sonny Perdue said he will sign an executive order Friday to suspend state motor fuel taxes through the end of September to "relieve some of the financial burden" on consumers in the wake of Hurricane Katrina.

The order will remove the 7.5-cents-a-gallon tax and a 4 percent sales tax on gas, the governor said, and was set to begin at midnight.

Leaders in several other states, including Massachusetts, Connecticut and Pennsylvania, have either proposed or said they are considering gas tax suspensions in their states.

Federal officials are starting to think about whether they need legislation keep the economy moving as it recovers from the hurricane and surging gas prices.

"We also need to be looking at the long-term economic impact not just to the states affected, but to the economy of the entire region. And I suspect that means some kind of stimulus package out there to be sure that we see the economy move forward as it needs to rather than it might in response to this disaster," said House Majority Whip Roy Blunt, R-Mo.

 

Come On Texas, Get With The Program!

 

woot this means we can all go and fill up with red??? hot dawg I just printed the article in case the fuel depot doesn't wanna fill me.... thanks for the heads up!

 

The action allows diesel fuel intended for farm equipment and government vehicles to be used by commercial trucks and other vehicles without a special tax.

Does that mean the Government has been filling up with red all this time?

Snowplows, school busses, city busses, etc?

The decision lifts federal excise taxes typically imposed when diesel is used outside of farm and government work.

I think that line implies that they are just going to suspend the extra taxes on regular #2 onroad Diesel down to where the red is currently priced.
I've only seen one station that stocks red, and it hasn't been all that much cheaper than the green stuff.


phox

 

well where I work we have a fleet of about 15 diesel's, checking the net for bulk prices drops the price to 239 a gal, quite a savings, 70 + cents a gallon. only way to go, contract buy in quantity and then they deliver when you need/ reg basis. 5000 gallons is what took it to 2.38, 1000 gal was " only " a savings of 60 cents a gallon.

 

Further clarification from the IRS.

IRS Waives Diesel Fuel Penalty Due to Hurricane Katrina

The IRS link: http://www.irs.gov/newsroom/article...=147221,00.html

IRS-2005-89, Sept. 2, 2005
WASHINGTON — The Internal Revenue Service, in response to shortages of clear diesel fuel caused by Hurricane Katrina, will not impose a tax penalty when dyed diesel fuel is sold for use or used on the highway.

This relief applies beginning August 25, 2005, in Florida, August 30, 2005, in Alabama, Louisiana, and Mississippi, and August 31, 2005, in the rest of the United States, and will remain in effect through September 15, 2005.

This penalty relief is available to any person that sells or uses dyed fuel for highway use. In the case of the operator of the vehicle in which the dyed fuel is used, the relief is available only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon. The IRS will not impose penalties for failure to make semimonthly deposits of this tax. IRS Publication 510, Excise Taxes for 2005, has information on the proper method for reporting and paying the tax.

Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses exempt from excise tax, such as to farmers for farming purposes and to local governments for buses.
Finally, the Internal Revenue Service will not impose the recently enacted tax penalty on a failure to meet the requirements of EPA highway diesel fuel sulfur content regulations if EPA has waived those requirements.

 

I'm assuming it's because there is a shortage of "Highway" fuel in the areas, and an abundance of "Red".
It says nothing, however, about being "Dipped" on September 16th and having residual red dye in your fuel system.

Just being paranoid..........

 

yes, school busses use red fuel. not sure on the others, but i know my school does.

 

I wont run red

unless i desperately need to.. Either ways this is good... but im just hopin it dont get abused..

Tx

 

well thanks for the clarification......... darn couln't be that simple. o well

 

so what that means, is that you can run red fuel, but you have to pay the taxes??

 

Yup
also just noticed the new software requires at least 10 characters in a post.

 

Yeah and after the lift the exemption then they will have a hoard of people out there dipping tanks. Seems like there could be soem residual red left for awhile so I would be the putz that gets busted.