Posted by Jon Hagen on January 17, 2015 at 11:04:47 from (69.26.17.105):
In Reply to: Fuel revisited posted by Bob Bancroft on January 17, 2015 at 03:47:54:
That does seem like an odd way to do it, puts a big financial load on the bulk fuel dealer if he has a lot of customers that use off road tax exempt fuel ?
In my state, North Dakota, the farmer or other off highway fuel user pays the tax to the bulk dealer at the point of sale. The bulk dealer is only required to forward that tax money to the state. At years end, the farmer can apply to the state for a refund of the highway tax money he paid at the point of sale for dyed off road fuel. The only downside is that the state has had interest free use of that tax refund for as much as a year. The state does not refund all highway tax for fuel used off road, I believe they keep 2-3%.
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