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  • vegetable oil car fuel,it can happen here/TAX

    State makes big fuss over local couple's vegetable oil car fuel
    By HUEY FREEMAN - H&R Staff Writer
    DECATUR - David and Eileen Wetzel don't get going in the morning quite as early as they used to.

    So David Wetzel, 79, was surprised to hear a knock on the door at their eastside home while he was still getting dressed.

    Two men in suits were standing on his porch.

    "They showed me their badges and said they were from the Illinois Department of Revenue," Wetzel said. "I said, 'Come in.' Maybe I shouldn't have."

    Gary May introduced himself as a special agent. The other man, John Egan, was introduced as his colleague. May gave the Wetzels his card, stating that he is the senior agent in the bureau of criminal investigations.

    "I was afraid," Eileen Wetzel said. "I came out of the bathroom. I thought: Good God, we paid our taxes. The check didn't bounce."

    The agents informed the Wetzels that they were interested in their car, a 1986 Volkswagen Golf, that David Wetzel converted to run primarily from vegetable oil but also partly on diesel.

    Wetzel uses recycled vegetable oil, which he picks up weekly from an organization that uses it for frying food at its dining facility.

    "They told me I am required to have a license and am obligated to pay a motor fuel tax," David Wetzel recalled. "Mr. May also told me the tax would be retroactive."

    Since the initial visit by the agents on Jan. 4, the Wetzels have been involved in a struggle with the Illinois Department of Revenue. The couple, who live on a fixed budget, have been asked to post a $2,500 bond and threatened with felony charges.

    State legislators have rallied to help the Wetzels.

    State Sen. Frank Watson, R-Greenville, introduced Senate Bill 267, which would curtail government interference regarding alternative fuels, such as vegetable oil. A public hearing on the bill will be at 1 p.m. today in Room 400 of the state Capitol.

    "I would agree that the bond is not acceptable, $2,500 bond," Watson said, adding that David Wetzel should be commended for his innovative efforts. "(His car) gets 46 miles per gallon running on vegetable oil. We all should be thinking about doing without gasoline if we're trying to end foreign dependency.

    "I think it's inappropriate of state dollars to send two people to Mr. Wetzel's home to do this. They could have done with a more friendly approach. It could have been done on the phone. To use an intimidation factor on this - who is he harming? Two revenue agents. You'd think there's a better use of their time," Watson said.

    The Wetzels, who plan to speak at a Senate hearing in Springfield today, recalled how their struggle with the revenue department unfolded.

    According to the Wetzels, May told them during his Jan. 4 visit that they would have to pay taxes at either the gasoline rate of 19½ cents per gallon or the diesel rate of 21½ cents per gallon.

    A retired research chemist and food plant manager, Wetzel produced records showing he has used 1,134.6 gallons of vegetable oil from 2002 to 2006. At the higher rate, the tax bill would come to $244.24.

    "That averages out to $4.07 a month," Wetzel noted, adding he is willing to pay that bill.

    But the Wetzels would discover that the state had more complicated and costly requirements for them to continue to use their "veggie mobile."

    David Wetzel was told to contact a revenue official and apply for a license as a "special fuel supplier" and "receiver." After completing a complicated application form designed for businesses, David Wetzel was sent a letter directing him to send in a $2,500 bond.

    Eileen Wetzel, a former teaching assistant, calculated that the bond, designed to ensure that their "business" pays its taxes, would cover the next 51 years at their present usage rate.

    A couple of weeks later, David Wetzel received another letter from the revenue department, stating that he "must immediately stop operating as a special fuel supplier and receiver until you receive special fuel supplier and receiver licenses."

    This threatening letter stated that acting as a supplier and receiver without a license is a Class 3 felony. This class of felonies carries a penalty of up to five years in prison.

    On the department of revenue's Web site, David Wetzel discovered that the definition of special fuel supplier includes someone who operates a plant with an "active bulk storage capacity of not less than 30,000 gallons." Wetzel also did not fit the definition of a receiver, described as a person who produces, distributes or transports fuel into the state. So Wetzel withdrew his application to become a supplier and receiver.

    Mike Klemens, spokesman for the department of revenue, explained that Wetzel has to register as a supplier because the law states that is the only way he can pay motor fuel tax.

    But what if he is not, in fact, a supplier? Then would he instead be exempt from paying the tax?

    "We are in the process of creating a way to simplify the registration process and self-assess the tax," Klemens said, adding that a rule change may be in place by spring.

    David Wetzel wonders why hybrid cars, which rely on electricity and gasoline, are not taxed for the portion of travel when they are running on electrical power. He said he wants to be treated equally by the law.

    David Wetzel, who has been exhibiting his car at energy fairs and universities, views state policies as contradicting stated government aims.

    "You hear the president saying we need to reduce our dependence on foreign oil," Wetzel said. "You hear the governor saying that."

    State Rep. Bob Flider, D-Mount Zion, also plans to support legislation favoring alternative fuels.

    "I'm disappointed that the Illinois Department of Revenue would go after Mr. Wetzel," Flider said. "I don't think it is a situation that merits him being licensed and paying fees.

    "The people at the department of revenue apparently feel they need to regulate him in some way. We want to make sure that he is as free as he can be to use vegetable oil. He's an example of ingenuity. Instead of being whacked on the head, he should be encouraged."

  • #2
    Re: vegetable oil car fuel,it can happen here/TAX

    Yet another example of how incredibly rediculous governments are ...
    Rob

    2004 VW R32

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    • #3
      Re: vegetable oil car fuel,it can happen here/TAX

      Totally ridiculous!!!!! Just shows you that the only ingenuity allowed is gov't regulated ingenuity. If they can't make money off you, you're not allowed to do it. This is soo frickin foolish. I guess the only alternative fuels are the hybrids gas/electric and ethanol cuz they've already set up a system around to make their money off us.
      LOGAN
      94 Jetta mk3 constant evolution

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      • #4
        Re: vegetable oil car fuel,it can happen here/TAX

        I agree on how stupid this sounds, also goes to show why I never went down to the states with my veggy powered car. If somebody is willing to spend the money and the time to convert and keep a veggy powered car on the road then I think he should not have to worry about taxes. The whole process is not as easy as most see it, I have done it and ran a car for 50000 km's, not one easy task. 50,000 km's on veggy oil instead of diesel, I think the gov't should have paid me for helping them achieve their climate change target, don't you think?
        Anyhow, over in Europe they tax veggy cars, but that is more because it is like half the cost to run off of new veggy oil then it is off of diesel. Diesel is cheaper here still so I don't see a mass following of veggy cars yet.
        This guy should be given a medal, not a tax bill.
        Just my opinion though as a fellow past veggy burner.

        Benjamin
        Last edited by Benjamin; 03-05-2007, 11:04 PM.
        Ben
        2016 Ram 3500 Laramie
        2000 Jetta TDi, Dead and removing parts
        2005 Passat Wagon TDi, 310,000 km's and counting, BSM delete done....Trans died going to replace
        Her's
        2016 Toyota Highlander XLE Pearl White

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        • #5
          Re: vegetable oil car fuel,it can happen here/TAX

          Yes, its total BS. How much money would have to be spent by the gov't in a situation like the above? The benefits in this case are worth more then the tax money that will be claimed. If, though, an entire state moved to alternate energy, of course a highway tax would need to be claimed. Regardless of how much effort you put in to your car.
          Stefan
          -> '19 Deep Black Pearl Alltrack
          -> '05 Urban Grey Passat Wagon TDI.
          -> Past rides: '14 Allroad, 06 Mazda5, '98 Jetta K2, '01 Jetta TDI, '91 Mazda B2200, '81 Toyota Cressida
          -> FutuRe Ride...??!

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          • #6
            Re: vegetable oil car fuel,it can happen here/TAX

            The States is based on precedent though, and if they allow 100 people to ride with no tax, then 1000, then 10,000 - at what point do they all of a sudden say "Hey, someone needs to pay for all this road construction/maintenance". Sort of like spending your budget or else you lose it next year.

            Of course this all leads closer to the GPS based tax on how far you drive, rather than the gas you consume. :(

            Khyron
            Geoff
            Fear is the element that unites all losers.

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