Rumors of a Tax Evasion Grease Bust!

August 20, 2008

wacky packages jail-oYep, I got a call today from a new SVO driver who wanted to know about vegoil and taxes.

The rumor out in the Matsu Valley is that the State Troopers are checking fuel tanks for tax evasion.

Supposedly they found a guy with big svo sticker and slapped him with a $800 fine for not paying the Alaska motor fuel tax.

I’ve been wondering how many folks have actually taken my advice and started paying their 8 cents a gallon to the state.

Now, I don’t have a great source for this info. It came by way of a phone conversation by way of a gas station conversation in Palmer by way of a “my buddy” story. I’ve got a call in to the Department of Revenue to see if I can verify any of this, but heck.. the rumor is already started.

Seems kinds funny this would happen now, as the latest petroleum profit payoff plan includes suspending the state motor fuel tax. (Yep, for you who don’t live in the last frontier, it’s true: every man, woman and child in Alaska is getting about three grand this fall from our oil investment “dividend” with a one-time “energy relief” bonus tacked on. That’s in addition to no income tax, no sales tax, and now no fuel tax!)

The other thing that doesn’t make sense is that I was told by a local petroleum distributor that Alaska is exempt from off-road dye requirements. How would the State Troopers test fuel if not by color?

Anyone know any more about this?

Veg On!

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One Response to “Rumors of a Tax Evasion Grease Bust!”

  1. Hydro Cracker Says:

    Throughout my law enforcement career I’ve never heard of any troopers or any other law enforcement officer in the state checking fuel tanks for SVO or enforcing any of the state regs on motor fuel tax and what not. First of all I believe that would constitute illegal search and seizure (depending on the situation). And now comes the big state budget cutbacks… The state can’t even afford to fly district attorneys around the state to participate in trial calls! I can’t imagine being out on patrol and fussing over anybody running with SVO, bio d or using home heating fuel in their diesel. To tell you the truth, (not to disparage my coworkers) I highly doubt any average copper or State Trooper for that matter would be able to tell you what SVO or WVO even is!

    I looked in my yellow traffic infraction manual for any possible motor fuel violations that could carry an $800 dollar fine and I can’t find any. I couldn’t find any citable offenses relating to motor fuels at all to be frank… Plus that $800 fine seems awful steep…. The largest citations issued for traffic offenses are generally for commercial vehicle violations and a big $500 and 6 pointer for driving without proof of insurance (correctable).


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