Are certain states bad to fuel in?

Q2: GA $.30 TN $.21 KY $.216 at the pump. KY then adds another $.102 surcharge that you've got to pay for your gallons used, as well as a $.0285/mile tax.

In other words, if the pump price in GA was less than $.09/gal more than TN or KY, you'd have been better off buying in GA. If you're running a lot of KY miles, the fuel bought in GA offsets the KY surcharge and mileage tax...especially useful if you're paying less than $.09 more per gallon pump price because you're also paying less for the actual fuel (pump price minus state tax).

 

I wouldn' go by Rutherford system. He simply says buy the cheapest (post tax) fuel. That will cost you more up front, and more in the long run. Because all states don't pass 100% of over buy.

 

When I used to run cross country (ny-ca) if just buy fuel in every other state going out. Then reverse it coming back. That way I bought fuel in every state. Usually resulted in a refund.

If you buy 50-60 gallons in every state you cross, on each run. You will always be covered.

Now I run east coast to south and midwest. I just make it a point to buy 100 gallons a month in ny,pa,ct,il. Other than that I don't worry about it. It covers itself (although I buy as little as possible in Indiana due to my political views) And the way they used to screw ya, not charging all tax at pump.

 

You do realize that if you and I run the same route we will pay the same fuel tax regardless of where we each buy fuel right?

When I'm looking to buy fuel I subtract the states for tax from the advertised price to get the real cost of the fuel. Then I buy whichever is cheaper at that price regardless of the fuel tax. The amount of fuel tax a driver owes the states has nothing to do with fuel being bought. It's all calculated by the miles ran/gallons burned in each individual state. When you buy fuel you pay some fuel tax right then. Just like with income tax. Your employer holds out taxes every payday but the amount they withhold has nothing to do with how much tax you actually are liable for. That is based on your income. If your employer withheld enough then you won't owe any at the end of the year because your tax liability has been fulfilled. If they withhold too much or not enough then you get a refund or pay in.

Fuel tax works the same. You owe based on gallons burned in each state. You pay a little of it at the pump. At the quarter you might have to pay in some cause you didn't pay enough at the pump, you might get a refund because you already paid too much, or neither will happen cause you paid just enough.

I prefer to lower my operating expenses by buying the cheapest fuel I can and whatever I pay at the pump, I pay. It doesn't make sense to buy forward in a high tax state that has a high price after fuel tax is deducted just to pay more tax at the time of purchase.

 

Thank you for giving me a education on fuel tax. I am the guy who usually does that. In a round about way, we are saying the same thing. However the amount of tax owed a state. Has EVERYTHING to do with how much fuel was purchased. Yes if we run same route *** important*** and get same fuel mileage. We will both owe/ pay the same thing) But the tax is paid at time of purchase. Therefore if you buy enough fuel in a given state. Then you will pay enough tax. That you won't owe, the overage paid will transfer to other states. And in the end you may get a refund. (I usually get a refund 2 quarters, and owe a small amount $50 the other two)

 

Nah...just Commerce mainly.

 

A lawyer with his briefcase can steal more than a hundred men with guns. - Mario Puzo, from the Godfather

It's true! Some of the biggest thefts were done without a gun, or weapon.

I'm looking at you Wall Street, Politicians, Corporations, etc etc.

Sirscrapntruckalot - It's not paranoia if they really are out to get you. - Not me

 

If the pump price is 3.00 and 2.80 less IFTA
And the other state pump price is 3.50 and 2.70 less IFTA
Where are you go8by to fill up at?

 

Yes it is possible to pay enough tax at the pump and even over pay. But my point was this, if we run the same route and get the same MPG but I have to pay at the quarter and you get a refund we still have paid the same amount in fuel tax. You just decided to pay yours at the pump and I decided to pay mine at the quarter. But the total amount if fuel tax paid in will be the same. We just paid it at different times. Like the post above, I'm buying the fuel that is posted at $3.50 a gallon cause it's really the cheaper fuel. I've seen guys spend $500-$600 more than me in fuel in a quarter trying not to "owe" $100 in fuel taxes. Doesn't make sense to me.

 

Have been seeing signs that say buy it where you burn it.
Makes some sense. Support your local fuel dealer.