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State makes big fuss over local couple's vegetable oil car fuel


http://www.herald-review.com/articles/2007/03/01/news/local_news/1021491.txt



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 #@$%!, 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."

Huey Freeman can be reached at [email protected] or 421-6985.

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Does anyone have an large and well done online source for quotations esp for the Founding Fathers ? (Serious question )
 
One interesting way to look at it - and some other related issues .



http://www.treehugger.com/files/2007/03/illinois_man_fi.php



The money quote from the first H&R article is this:- "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." In a follow up story, H&R reported that:- "Dave Wetzel, who drove to the state Capitol from his Decatur home in his fryer waste-propelled 1986 Volkswagen, won the hearts of lawmakers as he told of his struggle with the "revenuers."" TreeHugger wishes Mr Wetzel and his legislative supporters well. Epiphanies about energy security and fairness notwithstanding, this story certainly reinforces decades worth of conspiracy stories about oil companies quashing competition by lobbying for unfair regulations. For the future, however, and along the lines of Mr Wetzel's musing about hybrids and tax fairness, we wonder if the Illinois State Dept. of Revenue would also tax the "coal to liquids" plant diesel fuel product that is being actively supported by some US Senators, should a CTL plant be built and operated in Illinois at taxpayer expense? Wouldn't such taxation be double taxing? Image credit: Mobile Magazine
 
There is a big fuss about this on the Frybrid and the infopop forums. Hybrids are different than diesels. yes, they both use two forms of energy for locomotion, but only the hybrid create the energy for the other. the hybrid is just taking back some of the energy it wasted to use later. The diesel is using a totally separate form of energy that is not derived from the vehicle. Heated, yes, but not created. If you could get it declared as an additive, maybe, but having a separate tank for it wouldn’t be much of an additive would it.

His problem is stated in the article

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

The Japanese have a saying; The nail that sticks up gets hammered down. There are thousands of vehicles running on WVO in one way or the other. Those that brag about beating the system and do it in public, well, give a cop the finger and see what happens. Was it worth it for the government to send men out to talk to him, well, if they hoped to start something, like gets the little guy, and then you use that precedent to go after others, sure. Last I saw he didn’t have to pay at all, and the bill was pushing forward. Good for him for doing it, maybe it will make it easier for everyone doing it.
 
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There is a big fuss about this on the Frybrid and the infopop forums. Hybrids are different than diesels. yes, they both use two forms of energy for locomotion, but only the hybrid create the energy for the other. the hybrid is just taking back some of the energy it wasted to use later.




Let's not forget Hybrids or electric cars that can plug into the grid. Concievably they could also not pay any road fuel taxes.
 
I'd be happy to pay a 21 cent tax on each gallon of electrons my future electric car burns, especially if I charge it on alternating current.

Road tax will have to be assessed per mile.
 
Interesting. Listened to a radio interview of a man near here who contacted the provincial government to advise them that he is making BD and he wished to pay the appropriate road tax. They went away for a while and then came back and quoted him a number. He self-assesses his usage and remits his tax monthly. very straight-forward, it seems. There's no fooling around with stupid licensing schemes, etc.

John.
 
Just one more reason I add to the list of "Why I hate living in Illinois". If the US needed an enema, this is where they would put the tube.
 
Frankly, this whining is asinine. Roads are payed for primarily through fuel taxes. This kind of stupidity simply pushes for the Oregon-style GPS receiver/logger in the car that generates a tax bill for you monthly, or the advancement of toll roads into the West. The trouble with those alternatives is that they never replace fuel or other taxes, they are just added on. States are already aware of the 'dangers' of higher-mpg vehicles to their revenue streams and ability to build and maintain roads. Trying to cheat is a stupid way to try to change the system.
 
It doesn't look like he was trying to cheat. It looks like he thought posting a bond equal to 51 years of estimated usage was excessive.

I have to agree with him. I'm filing this under "just another day living in the Peoples Republik of Illinois."

I can't be objective though. I've lived her all of my life and in the past had to deal with the Illinois Department of Revenue...
 
"hybrids, electric cars, biodiesel, ethanol, should all be tax free. anything to reduce dependence on foreign oil should be tax free."

Well, as a famous philospher -I believe it was Dirty Harry Callahan- said, "Opinions are like ********, everybody's got one."

It MAY or MAY NOT be a good idea to rescind or rebate motor fuel taxes on these fuels. That's a political decision, and all the contemporary scene showe is that goverment is lagging behind reality (as ever). What "bulwnkl" says is nothing more than the truth. Road construction and repair is paid for primarily by the payment of motor fuel taxes. It amounts to a "pay as you go" system, and so is fairly conceived. Letting people off the hook, if done too much, will only spell disaster for our roads and highways, or, as has been stated, revert back to a system of toll roads and turnpikes. Actually, almost all the good roads in the U.S. at the beginning (late 18th - early 19th C.) were privately constructed, maintained, and operated turnpikes. It was a system, and it worked, and most public roads were a series of ruts.
 
An RFID toll tag would be good, as long as the tags are completely transferrable among vehicles of equivalent weight class. This would allow you to sell your tag and its associated account to anyone you want, in case you wanted privacy. When you want to top up your tag account, all you'd need to give is an anonymous account number and some money. The tag could have a keypad and a number screen showing how much money is on it. It could be optionally locked with a password.
 
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