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Does anyone know what you've gotta do to get tax exempt (for fuel and stuff)? I'm looking to start a small transport company but can't make the finances work by paying this much for fuel (or I'd have to charge more than I want and **** off my customers).
I live in Indiana, by the way. Not sure how the tax laws differ per state.
Your not totally tax exempt(atleast not in the state the I am in), you just get to claim a certain amount and that gets deducted off what you have to pay in April. I don't know how much per mile your able to claim nowadays, but I believe that's what your able to do. I'm more familiar with agriculture exemption then I am transportation exemption.
What about exempt fuel? I pass stations all the time that are advertising the exempt price of diesel. In many cases, its 30 cents cheaper than non-exempt diesel.
Slashpyro - I just drove through Indiana on my way to Florida and noticed that too - Exempt Diesel pricing on the mile high station signs. I was curious as well. I don't think they are using that advertising space for pushing their off-road use fuels. Again, these were big truck-stops/diners right off the interstate.
What about exempt fuel? I pass stations all the time that are advertising the exempt price of diesel. In many cases, its 30 cents cheaper than non-exempt diesel.
That is for tractors, lawnmowers, wood chipper engines etc. You are not able to use it in trucks that travel on public transportation roads. Well you can use it, but if you get dipped at a trucker weigh station(which you'll have to stop at those since your doing commercial hauling) you run the risk of getting big fines.
I noticed that as I was driving through Indiana as well.
I stopped at a station (just north of Indianapolis on I-65) and it was a big truck stop, but all the big truck pumps said "Tax Exempt".
I had no idea WTF that was about so I pulled to the pump right next to the door and pumped regular priced diesel.
Indiana has some type of exemption law for otr companies not sure about it exactly. but I do know it does not exempt you from paying the quartly fuel taxes based on miles driven.
In Indiana, as well as Oregon, trucks with a PUC sticker can fill up without paying the road taxes. They then have to report the number of miles driven and gallons used in the state and pay the taxes on it.
In the long run you pay the same. There is no tax exemption for on road vehicles, commercial or otherwise.
In Indiana, as well as Oregon, trucks with a PUC sticker can fill up without paying the road taxes. They then have to report the number of miles driven and gallons used in the state and pay the taxes on it.
In the long run you pay the same. There is no tax exemption for on road vehicles, commercial or otherwise.
Yep, I think this is the right answer. You keep track of miles driven in each state and pay accordingly.
Decades ago, we had to have decals in all the southern and western states. You could offset your fuel purchases agains the tax. This next statement will shock most, but we figured our fuel consumption at 4.5 MPG.
Religiously, auditors would come into our office and audit our trip records. We were an Irregular route common carrier.
Today, I have no clue, but from above posts, it sounds like several States still follow this method of taxation. One way or another, you pay.
Indiana has some type of exemption law for otr companies not sure about it exactly. but I do know it does not exempt you from paying the quartly fuel taxes based on miles driven.
Forget it. You will not make your margin by cutting corners on fuel taxes. You'll spend it in legal and accounting fees getting out of trouble.
The above analysis is correct, you have to be registered and have the decal, keep meticulous logs, and report the mileage quarterly and pay the tax in lump sum. Not worth doing unless you have very sophisticated accounting and computer gear.
Change your pricing model, build in a fuel surcharge, or find something else to do.
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