Propane, and Highway Use Tax

kaiser715

kaiser715

Doing hard time
Joined
Jun 1, 2006
Location
7, Pocket, NC
OK, I finally got in touch with the NC DOR, Motor Fuels Division. I want to get legal for on-highway use of my 2 propane-powered Jeeps, so looked at the options. Rough guessing, I burn about 400 gallons a year, 10% on-road.

First, and what I thought I wanted, was to get set up and pay my own taxes. This will be a major headache, application form is the same as if I was a propane dealer, not just an end user. Also have to post a $2k bond. NC form #1262 is the application, #1252 is the monthly reporting form, if you want to take a look at them.

Second option is to pay at the pump. But none of the dealers around here charges the highway use tax. I found a couple of internet directories of propane fueling stations, presumably for automotive use. I called 4 of the nearest stations listed (all major suppliers, no bbq-tank places), and none of them are set up to collect highway use tax. According to the person I talked to, I can maintain and fill separate vehicle tanks just to have occasional receipts for paying tax proportionate to my usage (I guess as in 'don't ask, don't tell') or pay on all fuel purchased and use form #1201 (refund of HUT) to get tax money paid back at the end of the year on fuel used for non-highway. Paying tax on every gallon won't work, as there is no local station to do it at...I can't drive an 80-mile round trip to fill up the tanks.

So, two questions: 1) for those running propane on the road, what are you doing about HUT? and 2) can you give me the name of a propane filling station in the Raleigh area that you use (or south) that is setup to collect highway use tax on propane?

THANKS!!
 
wow, you have got to have one of the most active consciences ever. i would never think of trying to figure out how to pay taxes that the govt didnt force me to pay.
 
unless you use it as a primary fuel for your daily drivers, etc., I wouldn't worrry about it. they are after the bigger fish.

Although its not the "right" way, its what I would do

Don't a lot of the propane refulling trucks run propane? What do they do?
 
BigRedB2 said:
is there a fine for getting caught?
Click to expand...

According to the state, $2750.00 combined state and federal penalties right off the bat....then they audit you and figure out how much tax you owe on past consumption.

All the biofuel people have brought this to the forefront...and then the state simplied the rules and process for them, leaving us stuck.
 
rockcity said:
unless you use it as a primary fuel for your daily drivers, etc., I wouldn't worrry about it. they are after the bigger fish.
Although its not the "right" way, its what I would do
Don't a lot of the propane refulling trucks run propane? What do they do?
Click to expand...

Thats addressed on the form...they have to track mileage and report approximate fuel consumed.
 
isnt the state $2k bond offset by a federal tax rebate for running a clean fuel?
 
bringing back a dead one here because I was just discussing this with a co-worker.

a friend of his had a propane powered vehicle that he had tagged and drove on the road some (mostly for farm use). when the gov found out about it, they charged him HUT tax for every mile on the ODO, he ended up owing over 10k in fines on a vehicle that, at that point, was not being driven due to a bad engine....

I wouldnt mind keeping track of my mileage, as it will be mostly a trail vehicle anyways. Has anyone gone through the process of doing this???
 
We ought to find spmeone up in Raleigh (state legislator) that will sponsor a bill to give us the same exemption that they gave biodiesel.

Anybody want to help get theball rolling?
 
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