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"Off Road" fuel

Discussion in 'Lawn Mowing' started by Jimbo, Jan 23, 2003.

  1. Jimbo

    Jimbo LawnSite Bronze Member
    Posts: 1,093

    I have read the posts about off road diesel fuels. It make sense to offer these fuels minus the taxes for road maintenance, because the equipment never sees the road except when its on a trailer.
    What about regular gas???? I could save a ton of money on my mowers and 2-cycle equipment. Is this something that is out there I am not aware about or is it something that our industry needs to lobby for??

  2. lawnMaster5000

    lawnMaster5000 LawnSite Senior Member
    Posts: 589

    not to be rude, but do a search, I would find something for you but the search button never seems to show up on my computer.

    i know we have talked about this on two diffrent threads - under the business forum.
    good luck
  3. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    Check with your CPA. Gas tax is deductable.
  4. xpnd

    xpnd LawnSite Senior Member
    Posts: 378

    When you file your taxes there is a form (don't know the number) that based on gallons(diesel, gas or kerosene) used for non road use, gives you a credit for the amount of excise tax to any payment due. You need to know how many gallons though not total dollars
  5. Gravely_Man

    Gravely_Man LawnSite Silver Member
    Posts: 2,076

    Income tax deductions are your only option for gas. Talk with you CPA.

  6. Mowingman

    Mowingman LawnSite Platinum Member
    from Texas
    Posts: 4,664

    This is NOT correct, at least not in Texas. I file a form with the State Comptrollers office each qtr. showing how many gallons of gas was used off road. The State sends me a refund for the tax on that gasoline . Then I file the balance of my gasoline cost as a deduction on my income tax.
    Maybe this state refund is something that each individual state decides on ?
  7. dougaustreim

    dougaustreim LawnSite Senior Member
    Posts: 488

    The first part of the answer to this question is that there are actually two fuel taxes. Federal and state. The federal tax you take as a credit on your income tax return. You simply have to keep records on the number of gallons that you buy and record those on the fuel tax form. It is then deducted directly from the tax that you owe or is added to your refund.

    State tax depends on your state. In our state, in order to get off road tax refunded, you have to buy it in bulk and periodically send original copies of your invoices to that state and they send you a refund. One kicker is that for non-ag off road fuel, you have to pay sales tax on the purchase price, but that is much less than the 0.18 a gallon fuel tax.

    For diesel, it is different, dyed diesel fuel is sold untaxed. It is of course illegal to put dyed fuel in a motor vehicle for highway use. If you do any highway or street work, however, you have to be a licensed highway contractor, and then quarterly pay the state the fuel tax on fuel used on highway projects. Work on highway construction etc is considered on road work.


    Austreim Landscaping

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