dieselJon

What sort of legalities will I face when making my own biodiesel? My dad says I would have to pay tax on it. Fine but where do I find the info on it? Or is it tax exempt? He also made mention of the fact that after you admit to making bio, they are gonna want certificates and a alphabet after your name so they know it is being done right. I need a little help here.

Mods, I put this in the General section so it get more publicity. If it is not ok, please, by all means, move it.

Thanks!

Jon

Number47

as long as you dont sell it i dont think you have to pay tax on it, but i could be wrong

Totallyrad

There was a thread on here a while back about just this. It included a link to an article where a fellow in North Carolina was making his own bio. He got caught somehow and received a $1000 fine from the state and was told to expect another from the feds. It seems there, he needed to post a $2500 bond and pay the fuel taxes. This is just one incident in one place in a very large country. The State or County tax assessor's office would be a good place to start if you intend on doing it legal. Remember, the responsibility to find the information, comply with the law and properly dispose of any bi-products is yours. You've started out well by asking for info.

On edit; there's some interesting links in this thread.
https://www.dieseltruckresource.com/...h+carolina+bio

kawi600

yeah the maze of laws you need to navigate in order to comply with your state and federal obligations is crazy. you also need to pay the road tax to the state and fed for all the fuel you use on the road. That part isnt near as bad as the first part though.
All this over-regulation and nanny-state junk does not make it easy for new markets to spring up, thats for sure. =(

j-fox

As I understand Illinois law, we can make 400 gallons a year as experimental fuel, without consequence.
After that taxes and regs get involved.
Don't even ask about the road and sales taxes!! They will hound you worse than a drug dealer.
Just shut up about it and do it safely. Keep and crude paper work that shows you made less than 150 gallons a quarter. If you know what I mean.

patdaly

And do not forget, you also make Biodiesel to run your SHOP FURNACE. Sure was cold for most last winter, but not Y'all with your nice toasty BIODIESEL shop furnace.......Of course, what road tax would you owe for your shop furnace?

John Faughn

Competition is limited by large companies having the government & lawyers in there pockets , making the rules to favor them alone .

Southern Pride

sooooooooo "if you live out in the sticks with no one around on a farm", how will "they" ever know what fuel your runnin.

Valv

Does this include using vegetable oil ?

Sprinter17

Just make it, you ask ten people, you'll get ten different answers. It's like when I needed permits to build my house, I finally talked to the city engineer,and he said I didn't need half of what the building dept. said I needed. If I got questioned about making it, I'd just act stupid like the local governments do. You might get questioned by a fire marshal if you burn your house down though. If I had the source of good oil, I'd be right behind you, the uS gov. is not doing anything about regulation,or using oil reserves to stimulate these prices, I will. I'll run a 1foot straight pipe of my engine if I thought it would give me better mileage, because what good is a 3ton piece of steel sitting in my driveway if I can't use it. If I'd of know this is what we were heading for when I bought my truck, I'd of bought a convertible mits. spyder , which I might still do if this fuel pricing garbage keeps up.

Iron Mike

Do a Google search on couple in Illinois who Our wonderful Governor is having prosecuted for making their own BIO and not paying taxes on. He was really sticking it to them.

stuckey200224

wonder what they would say to those of us running off road fuel?

Timmay2

State and federal tax evasion.

Any motor fuel must be taxed at state and federal level. Waste, bio, diesel, motor oil, anything you combust in your engine or place in your tank has to be taxed for on road use.

Roads gotta be paid for, and if youre not chippin in they will hit you for tax evasion when they find out.

Some states allow you a certain number of gallons before requiring to be taxed.

As of now, they are all different on a state level.

The tax evasion hotline may be able to answer your questions more legally, as they do take calls about people homebrewing biodiesel.

Timmay2

Heres what you want Jon

http://tax.illinois.gov/Motorfuel/index.htm

Timmay2

Kept reading just for fun, and theres actually alot on it on their site there:

Heres the actual form that should be filed:
http://www.revenue.state.il.us/TaxFo...ft/RMFT141.pdf

Who must fi le Form RMFT-141
If you produced biodiesel fuel or blended diesel with any
agent to make a biodiesel blend, for your own use in operating
motor vehicles on Illinois public highways or, for use in
recreational-type watercraft on Illinois waters, you must fi le
Form RMFT-141, Private-Use Biodiesel Producer Return.


And... its yearly if you use less than 5,000 gallons:
http://www.revenue.state.il.us/Legal...500-203-pa.pdf
Effective July 1, 2007, if a
private biodiesel fuel producer’s total gallonage is less than 5,000 gallons per year, he may
report and pay his motor fuel taxes once a year.