NC charges a gas tax of 30.2, nearly double SCs tax of 16.8 cents a gallon.
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From: Charleston SC
NC charges a gas tax of 30.2, nearly double SCs tax of 16.8 cents a gallon.
North Carolina charges a gas tax of 30.2 cents a gallon, nearly double South Carolina's tax of 16.8 cents a gallon.
http://www.charlotte.com/mld/observer/news/16105416.htm
N.C. targets gas cheats
Computer system designed to help catch distributors skirting state fuel tax
- N.C. tax collectors are redoubling efforts to catch scofflaws who have cost the state millions in lost gas taxes.
With gas prices hovering around $2 and N.C.'s gas tax among the highest in the country, avoiding the tax has becoming increasingly attractive.
State officials say offenders include distributors who lie about where they deliver fuel and farmers and truckers who misuse special no-tax fuel.
Now tax collectors are fighting back. They're installing a $1.1 million computer system to track each gallon of gas sold in the state, and they've hired a new team to catch gas tax cheats.
"For some reason, there's been a disconnect between what they owe and what we're collecting," said Norris Tolson, the N.C. revenue secretary and top tax collector.
State officials say their new efforts have brought in $7 million in the last year, and they expect to collect another $48 million over the next two years.
Much of the recouped amount will help build and maintain roads, as does most of the $1.3 billion raised each year from the gas tax.
Most industry officials say they support the new collection program. They say some of the uncollected tax results from honest mistakes or from smaller, fly-by-night companies.
Here's one way a petroleum company can avoid the tax:
First, its drivers fill up their tanker trucks in North Carolina but say they're taking the gas to another state that has a lower gas tax, such as South Carolina. They pay the lower tax.
Next, they deliver to a gas station in North Carolina, passing on to the consumer a price that includes the higher N.C. gas tax.
Finally, the company pockets the difference.
And it's not pocket change. North Carolina charges a gas tax of 30.2 cents a gallon, nearly double South Carolina's tax of 16.8 cents a gallon. For a tanker truck that holds 8,000 gallons, the difference is more than $1,000 per load.
Big problem or minor mistake?
Still, no one knows for sure how much tax is not being paid. Industry officials say the state's $55 million target might be high."We don't think there's as much evasion as they think there is," said Garry Harris, executive vice president of the N.C. Petroleum Marketers Association, a trade group for fuel companies and stations.
Harris also said much of the unpaid tax could result from honest, human error, particularly when tanker drivers pick up fuel from distribution terminals.
"The driver gets out, and a lot of times it's 3 o'clock in the morning, and he has to punch a code for where he's going," Harris said. "Sometimes he'll punch the wrong code."
The state's new computer system should help catch such errors, as well as intentional cheating, by comparing electronic records from various sources. Any discrepancies will show up automatically.
No-tax fuel misused
State officials say there are other ways people get around paying the N.C. gas tax. For example, some farms and small businesses are eligible to buy no-tax fuel if the fuel will be used on private property, under the theory that the gas tax should operate like a fee for using state roads.
But that special no-tax fuel, which is dyed red, sometimes ends up in on-road vehicles, including farmers' pickup trucks and hauling companies' interstate trucks. Tax collectors try to catch them with roadside stops.
"North Carolina is really an at-risk state for cheating because of our very high fuel tax, relative to that of our neighbors," said Charles Diehl, president of the N.C. Trucking Association.
Diehl and Harris both said their associations support increased enforcement of the gas tax because most or all of their members obey the law and lose out when other companies do not.
N.C. revenue officials said the new enforcement program should be at full strength by mid-2007, when the new computer system is scheduled for completion. They're already spending almost $1 million a year for 19 new people, including roadside investigators and auditors who search for discrepancies in paperwork.
A spokeswoman for the S.C. Department of Revenue did not have an estimate on under-collections of the gas tax there, but said the department performs regular audits.
State Rep. Nelson Cole, a Reidsville Democrat who often works on transportation issues, said the General Assembly is eager to see whether the new program pays off.
"If it takes one year to pay for it," Cole said, "why wouldn't you invest?"
Evading the Gas Tax
N.C. tax collectors think a small number of companies and people are avoiding the state's 30.2 cents-per-gallon gas tax. Here's how:
Farmers and truckers: The gas tax is intended to pay for roads, so some people get their gas tax-free if it'll be used off-road. But that no-tax gas is sometimes misused.
Fuel companies: The gas tax is imposed at distribution terminals and companies pay based on where they say they'll be delivering the fuel. But sometimes the fuel is later diverted.
http://www.charlotte.com/mld/observer/news/16105416.htm
N.C. targets gas cheats
Computer system designed to help catch distributors skirting state fuel tax
- N.C. tax collectors are redoubling efforts to catch scofflaws who have cost the state millions in lost gas taxes.
With gas prices hovering around $2 and N.C.'s gas tax among the highest in the country, avoiding the tax has becoming increasingly attractive.
State officials say offenders include distributors who lie about where they deliver fuel and farmers and truckers who misuse special no-tax fuel.
Now tax collectors are fighting back. They're installing a $1.1 million computer system to track each gallon of gas sold in the state, and they've hired a new team to catch gas tax cheats.
"For some reason, there's been a disconnect between what they owe and what we're collecting," said Norris Tolson, the N.C. revenue secretary and top tax collector.
State officials say their new efforts have brought in $7 million in the last year, and they expect to collect another $48 million over the next two years.
Much of the recouped amount will help build and maintain roads, as does most of the $1.3 billion raised each year from the gas tax.
Most industry officials say they support the new collection program. They say some of the uncollected tax results from honest mistakes or from smaller, fly-by-night companies.
Here's one way a petroleum company can avoid the tax:
First, its drivers fill up their tanker trucks in North Carolina but say they're taking the gas to another state that has a lower gas tax, such as South Carolina. They pay the lower tax.
Next, they deliver to a gas station in North Carolina, passing on to the consumer a price that includes the higher N.C. gas tax.
Finally, the company pockets the difference.
And it's not pocket change. North Carolina charges a gas tax of 30.2 cents a gallon, nearly double South Carolina's tax of 16.8 cents a gallon. For a tanker truck that holds 8,000 gallons, the difference is more than $1,000 per load.
Big problem or minor mistake?
Still, no one knows for sure how much tax is not being paid. Industry officials say the state's $55 million target might be high."We don't think there's as much evasion as they think there is," said Garry Harris, executive vice president of the N.C. Petroleum Marketers Association, a trade group for fuel companies and stations.
Harris also said much of the unpaid tax could result from honest, human error, particularly when tanker drivers pick up fuel from distribution terminals.
"The driver gets out, and a lot of times it's 3 o'clock in the morning, and he has to punch a code for where he's going," Harris said. "Sometimes he'll punch the wrong code."
The state's new computer system should help catch such errors, as well as intentional cheating, by comparing electronic records from various sources. Any discrepancies will show up automatically.
No-tax fuel misused
State officials say there are other ways people get around paying the N.C. gas tax. For example, some farms and small businesses are eligible to buy no-tax fuel if the fuel will be used on private property, under the theory that the gas tax should operate like a fee for using state roads.
But that special no-tax fuel, which is dyed red, sometimes ends up in on-road vehicles, including farmers' pickup trucks and hauling companies' interstate trucks. Tax collectors try to catch them with roadside stops.
"North Carolina is really an at-risk state for cheating because of our very high fuel tax, relative to that of our neighbors," said Charles Diehl, president of the N.C. Trucking Association.
Diehl and Harris both said their associations support increased enforcement of the gas tax because most or all of their members obey the law and lose out when other companies do not.
N.C. revenue officials said the new enforcement program should be at full strength by mid-2007, when the new computer system is scheduled for completion. They're already spending almost $1 million a year for 19 new people, including roadside investigators and auditors who search for discrepancies in paperwork.
A spokeswoman for the S.C. Department of Revenue did not have an estimate on under-collections of the gas tax there, but said the department performs regular audits.
State Rep. Nelson Cole, a Reidsville Democrat who often works on transportation issues, said the General Assembly is eager to see whether the new program pays off.
"If it takes one year to pay for it," Cole said, "why wouldn't you invest?"
Evading the Gas Tax
N.C. tax collectors think a small number of companies and people are avoiding the state's 30.2 cents-per-gallon gas tax. Here's how:
Farmers and truckers: The gas tax is intended to pay for roads, so some people get their gas tax-free if it'll be used off-road. But that no-tax gas is sometimes misused.
Fuel companies: The gas tax is imposed at distribution terminals and companies pay based on where they say they'll be delivering the fuel. But sometimes the fuel is later diverted.
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From: Buies Creek, NC
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From: NC
This is all way I buy all my fuel in Virginia. For the truck, cars, etc. It's easy for me since I work there and live just across the line. For some reason all the stations in my county are about .10 cents higher than Greensboro or W-S areas. Doesn't seem right, my county is much less urban. Right now, the station I get fuel at is $2.49, that's diesel in southern VA.
Besides the fuel prices being higher, my yearly state taxes are much higher in NC. Since I work in VA and live in NC, it takes all my return from VA plus that amount just to pay NC. Yea, NC taxes suck. My accountant once told me that NC has the highest fuel tax, this side of the Mississippi River.
Besides the fuel prices being higher, my yearly state taxes are much higher in NC. Since I work in VA and live in NC, it takes all my return from VA plus that amount just to pay NC. Yea, NC taxes suck. My accountant once told me that NC has the highest fuel tax, this side of the Mississippi River.
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From: Shippensburg, PA
Not trying to start a war or get into a political discussion here but I take issue with the entire fuel tax system.
According to the above quotes, almost all of the income from fuel taxes should go to maintenance and repair of state roads right?
I live in Pennsylvania but frequently drive through MD and VA. As of right now the Flying-J in Carlisle, PA has unleaded at $2.31 and diesel at $2.65 yet the Flying-J in Winchester, VA has unleaded at $2.19 and diesel at $2.41. Pennsylvania is KNOWN for having some of the WORST roads on the east coast, possibly the country. Virginia has some of the nicest roads I have driven on yet fuel in VA is roughly $0.18(avg) cheaper. If the fuel tax system is working correctly then shouldn't PA comparatively have some REALLY nice roads? I'm not saying this is an issue across the country but with a $0.30 fuel tax NC better have some NICE roads.
I also take issue with the fact that about 8 or 10 years ago diesel was usually like $0.25 cheaper than unleaded and then all of a sudden *POOF!* diesel magically costs $0.25 more. I understand that medium and heavy-duty trucks do more damage to the roads but there are also alot more of them out there buying alot more fuel than us little guys. I guess my point with that is, don't punish all oil-burners just because 99.9% of big trucks are diesels. Thats why they have fuel
IMO the entire system looks great on paper but has been fouled up by legislation. The whole thing needs to be revamped so that it acutally works as it was designed to do. And PLEASE feel free to correct me if I am wrong...
I live in Pennsylvania but frequently drive through MD and VA. As of right now the Flying-J in Carlisle, PA has unleaded at $2.31 and diesel at $2.65 yet the Flying-J in Winchester, VA has unleaded at $2.19 and diesel at $2.41. Pennsylvania is KNOWN for having some of the WORST roads on the east coast, possibly the country. Virginia has some of the nicest roads I have driven on yet fuel in VA is roughly $0.18(avg) cheaper. If the fuel tax system is working correctly then shouldn't PA comparatively have some REALLY nice roads? I'm not saying this is an issue across the country but with a $0.30 fuel tax NC better have some NICE roads.
I also take issue with the fact that about 8 or 10 years ago diesel was usually like $0.25 cheaper than unleaded and then all of a sudden *POOF!* diesel magically costs $0.25 more. I understand that medium and heavy-duty trucks do more damage to the roads but there are also alot more of them out there buying alot more fuel than us little guys. I guess my point with that is, don't punish all oil-burners just because 99.9% of big trucks are diesels. Thats why they have fuel
IMO the entire system looks great on paper but has been fouled up by legislation. The whole thing needs to be revamped so that it acutally works as it was designed to do. And PLEASE feel free to correct me if I am wrong...
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From: Minneapolis, MN
Fuel prices differ from state to state and from city to city for a lot of other reasons than fuel taxes. California gas taxes are low to mid range, yet they usually have some of the highest gas prices.
Federal diesel fuel tax is 6 cents higher than gasoline so that alone doesn't explain why diesel prices are higher thasn gasoline. Higher taxes for diesel are not even close to 25 cents.
Brian Elfert
Federal diesel fuel tax is 6 cents higher than gasoline so that alone doesn't explain why diesel prices are higher thasn gasoline. Higher taxes for diesel are not even close to 25 cents.
Brian Elfert
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From: Mountains of Western NM
http://www.lmoga.com/taxrates.htm
Taken from the above site:
This site gives the state, local, and federal tax per gallon:
http://www.taxfoundation.org/publica...show/1054.html
Taken from the above site:
State Gasoline Taxes
Gasoline taxes are levied in various ways in different states. Some states, such as Louisiana, levy a flat rate per gallon. Others charge a tax similar to a sales tax in that it applies to the monetary amount of the gasoline sold. Other states allow local communities to levy gasoline taxes in addition to any state taxes that might be levied. The following table only shows the statewide taxes.
Gasoline taxes are levied in various ways in different states. Some states, such as Louisiana, levy a flat rate per gallon. Others charge a tax similar to a sales tax in that it applies to the monetary amount of the gasoline sold. Other states allow local communities to levy gasoline taxes in addition to any state taxes that might be levied. The following table only shows the statewide taxes.
http://www.taxfoundation.org/publica...show/1054.html
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From: Owensboro KY
Well , I can tell you NC doesn't spend the money on keeping roads clear in the winter . After stopping in TN to fuel up on I-40 Thursday night , I got about 3 miles into NC and came to a dead stop because of icy conditions 20 miles ahead . After 2 hours I made it another 6 miles to a rest area where I spent the night .
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From: outside Raleigh, NC
If NC raised taxes to where it could afford all of the equipment needed to keep the roads clear then our property tax rate would not be as attractive to all of those Yankmees that keep moving down here because it costs less to live here. Due to the influx of people who "grew up driving on snow" that do not know how to drive their trendy little SUVs on the slush/refroze/black ice-that-will-melt-tomorrow we get around here I stay off the road when it gets slick. I have the equipment to go in the snow if I want to but don't want to deal with the hassle of the rest of the motoring public trying to get little Sarah home from dance class. Years ago I used to haul doctors and nurses around when it got ugly but my better sense now says to stay home and watch the TV for reports on all the non-driving in-duh-viduals in sport utes piling into each other and immovable objects off the roadway. All I can think is there goes an excuse for the insurance companies to raise my rate whenever I see some high-end sport ute, Explorer, minivan, 4wd cityboy pickup, etc. upside down or crumpled in the snow. I don't suffer traffic well these days.
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From: Montana
I ask you what is better, higher fuel taxes or states selling taxpayer built toll roads to foreign companies in order to gather needed money for road maintenance?
Hard to believe that some states are selling off their highways rather than raise taxes.
Hard to believe that some states are selling off their highways rather than raise taxes.
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From: Owensboro KY
TN , SC , and KY all have fuel prices considerably lower than NC and KY just removed tolls on their parkways last month .