Published: August 28, 2008 09:13 am      

Untaxed diesel use by truckers on the rise

By TESA CULLI

tesa.culli@register-news.com

MT. VERNON — As the price of diesel fuel goes up, the instances of truck drivers obtaining and using off-road diesel to avoid paying taxes is increasing.

“During the first 18 months of 2008, agents for the Department of Revenue Bureau of Criminal Investigation have already caught 117 trucks using untaxed diesel fuel for highway use,” information from the Department of Revenue states. “Agents caught 111 trucks with untaxed diesel fuel in all of 2007, and only 46 trucks in 2006.”

According to Rod Brockman, energy and marketing director for Agripride FS, truckers obtaining non-taxed, or off-road diesel isn’t new. But, the instances of the drivers using the fuel for highway use is on the increase.

“Everyone pays sales tax on both types of diesel,” Brockman explained. “But with clear diesel, the federal and state motor fuel taxes are added on to the sale price. And, in Illinois, that’s about 46 cents per gallon.”

When truckers are faced with filling a 100 gallon tank on a vehicle that gets between seven and 10 miles per gallon when fully-loaded, there’s a big temptation.

“Our stepped up enforcement is a matter of simple fairness,” Revenue Director Brian Hamer stated. “The motor fuel taxes being evaded pay for the very roads these trucks use. Honest truckers who pay the tax want to know we are pursuing those who do not.”

During recent road checks drivers offered inspectors a variety of excuses for having the dyed diesel in their tanks, according to the Department of Revenue.

“When stopped by agents near Cairo for a fuel inspection recently, the driver just lowered his head and stated, ‘I’m as guilty as a four-legged possum,’” information from the department states. “Just prior to a fuel inspection near Bloomington, another driver told an agent, ‘I’ll save you the trouble, I’ve got dyed fuel in my truck.’ After the inspection which confirmed untaxed fuel, the driver told the agent, ‘See, I told you so.’ The owner of a trucking business in Chicago was recently caught with dyed fuel in two of his semi trucks. When questioned about where he got the dyed fuel, the owner finally admitted he siphoned the dyed fuel from his neighbor’s bulk fuel storage tank.”

Off-road diesel is legally obtained and used by farmers for farm equipment and commercially by those who use heavy equipment such as skid and front-end loaders and dirt-moving equipment.

Brockman said some truckers are switching to biodiesel to avoid paying sales taxes legally.

“In Illinois, they can avoid paying sales taxes by using an 11 percent blend of biodiesel,” Brockman said. “That’s a blend of 11 percent soy oil and 89 percent diesel fuel. It will run in an engine and equipment just fine. Illinois is the only state that abates the sales tax on biodiesel, but they still pay the motor fuel taxes.”

The penalties for being caught using off-road diesel on highways is a $2,500 fine for the first offense, and $5,000 for subsequent infractions in addition to criminal penalties, according to the Department of Revenue. Inspectors will be traveling to every county in the state to ensure equal and fair enforcement of the law, and have already conducted enforcement details in Chicago, the Metro East area, southeastern Illinois, Southern Illinois and the Quad Cities area.