Biofuels buffs beware: The taxman cometh!

This post is brought to you by  Curt Rosengren ~ Passion Catalyst TM   "Love your work. Change your world."

Let's say you've bought an old diesel Mercedes so you can run it on biofuels. And let's say you feel so good about it that you slap a bumper sticker on your car that says, "Powered by 100% vegetable oil." Now let's say your bumper sticker gets noticed by state Department of Revenue inspectors who are inspecting RVs for illegal (i.e., untaxed) fuel.

What do your efforts to use alternative fuels net you? A big fat fine.

So last fall [Bob Teixeira] spent $1,200 to convert his 1981 diesel Mercedes to run on vegetable oil. He bought soybean oil in 5-gallon jugs at Costco, spending about 30 percent more than diesel would cost.

His reward, from a state that heavily promotes alternative fuels: a $1,000 fine last month for not paying motor fuel taxes.

He's been told to expect another $1,000 fine from the federal government.

And to legally use veggie oil, state officials told him, he would have to first post a $2,500 bond.

On the one hand, I look at this and think that's completely out of whack. Talk about a disincentive to convert to alternative fuels. On the other hand, I look at it and think, well, fuel is fuel. Why should alternative fuels be exempt?

What do you think? Should alternative fuels be taxed? Or should the government encourage their use by letting it slide?

[via TreeHugger]

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