Fueling up

Discussion in 'Ask An Owner Operator' started by JHaulingS, Jul 26, 2014.

  1. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    OK. i just checked the website for AZ DOT, re: diesel fuel sales. 2 types of taxes (.18 and .26) The pump with .18 tax is NOT for big trucks, it's just for pick-up trucks etc. If you fuel a class 8 you need to be fueling from a pump that is charging the .26 tax, or else you'll have the state of Az. on your donkey. Now this is only Az. I'm not sure if other states have a similar policy. I have seen stations posting "car diesel" for less per gallon than "truck diesel".
     
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  3. JHaulingS

    JHaulingS Bobtail Member

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    Yeah, I suppose if you're a fleet, even a small one, you can negotiate with the truck stops. The truck stops will give them a break on fuel cause they know the drivers will spend money there. I'm sure at some point, I'll have to use my fuel card to get whatever discount I can. But until I can find a better end of the day price, I might try to fill up here at home whenever I can. And we plan to come home often, so that might work most of the time.
     
  4. JHaulingS

    JHaulingS Bobtail Member

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    I'll keep that in mind if heading down that way & fuel up in another state. With 280 gal at my disposal, I have options. Thanks for doing the research. And to Az, thanks for sticking it to the truckers. I'm sure ones who thought up that law sleep very good at nite knowing they're making the world a better place.
     
  5. otherhalftw

    otherhalftw R.I.P.

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    It isn't just AZ! There is a difference in tax amount to cover the additional wear and tear on the roads from the heavy trucks. i.e., highway use tax!
     
  6. JHaulingS

    JHaulingS Bobtail Member

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    Geez, when I went to the IRS to fill out Form 2290 (Heavy Highway Vehicle Use Tax Return), & paid $550.00 before I could get my apportioned plate, I didn't think I was going to get stuck again. Are you sure about that?
     
  7. otherhalftw

    otherhalftw R.I.P.

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    That is the Fed you aren't figuring state by state. Many companies still have drivers monitoring mileage for each state on pay envelopes, companies that are a bit more "techie" use programs that figure mileage by dispatch route taking the burden off the driver.
     
  8. double yellow

    double yellow Road Train Member

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    Oh no. On top of hhvut you have:
    Your apportioned plate --costs are based on declared weight & estimated mileage through various states
    Ifta which calculates fuel taxes owed/refunded throughout the states you ran
    Additional weight-distance taxes in OR, NM, KY, & NY


    With an apportioned plate & ifta it really shouldn't matter what tax rate your pump is -- you ultimately wind up paying the same tax when you do the ifta filing. That's why you should subtract the fuel tax when comparing prices -- you pay the same tax regardless so you want to focus on the lowest cost of fuel.
     
  9. JHaulingS

    JHaulingS Bobtail Member

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    So what is the tax we pay? Is it just the federal tax? Are we refunded the state tax we pay at the pump? My friend that has his authority told me to avoid buying gas in Or cause they don't have state tax on their fuel. I don't get it.
     
  10. double yellow

    double yellow Road Train Member

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    Lets say you're going from Central Point, OR to Sacramento, CA. 314 miles, 33 in Oregon, 281 in California. Your truck averages 6.5mpg.



    You pay the following state taxes regardless of where you fuel:

    Oregon: $0.1638/mile, which comes to $5.41 (0.1638 × 33)

    California: $0.453/gallon which comes to $19.58 (281 / 6.5 × 0.453)

    for a total of $24.99


    It costs you $24.99 for this trip whether you buy fuel in Oregon, California, or not at all. But lets say you want to buy 75 gallons along the way... The cash price in Oregon is $3.699. The cash price in California is $4.059.

    Seems like Oregon is a better buy, right? Wrong. Oregon charges no tax at the pump. California charges $0.453/gal. So your cost for fuel is actually $3.699 in Oregon and $3.606 in California.

    So you buy the 75 gallons in California which means you prepaid $33.98 in fuel tax. Since you only owed $24.99, you'll wind up with a ~$8 refund when you file your next ifta return.

    Had you bought your fuel in Oregon, you would have needed to send in a ~$25 payment.





    * This is simplifying it slightly -- It is actually 2 separate filings -- but the net result is the same*
     
  11. Cranky Yankee

    Cranky Yankee Cranky old ######

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    pay now or pay later on the state tax rate
    ends up all in the filing afterwards
    or so my boss says
     
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