Fuel Tax Compliance....

Avalon Petroleum has distributed petroleum products in the Midwest since 1925, and offers total compliance for EPA and fuel tax regulations. It is imperative that all fuel vendors use the legal calculation for charging various fuel taxes; in several instances, this has not been the case, and in one instance our former customer became embroiled in a tax dispute with the Excise Tax Division of the IRS and the Illinois Department of Revenue. In many cases the fuel purchaser can be required to pay the appropriate taxing authority directly if the fuel vendor hasn't charged the proper taxes. The legal calculation for various products delivered to Cook County is as follows:

Invoice Component Gasoline On Road Diesel Off Road Diesel
Base price of product .679 .679 .679
Federal Excise Tax .184 .244 -0-
State Motor Fuel Tax .19 .215 -0-
State EIF Fee .008 .008 .008
State UST tax .003 .003 .003
Cook County Tax .06 .06 .06
State Sales Tax (Avalon's rate) 5% 6.25% 6.25%
Calculated as follows (Base + Federal + UST + EIF) X Tax Rate
Total Price per Gallon $1.1677 $1.2674 $.7931

Several Items are of Note, specifically:

If there are large differences in fuel quotations, fuel tax calculations are often the culprit.  Non compliance can result in large, unmanageable problems even though the difference is only a few cents per gallon.  Don't assume that the taxes are right, or you have no liablity if taxes are uncharged.  If you have a question about how your invoices are calculated by Avalon or any other fuel vendor, please call us at 877-2AVALON.  We offer total compliance in fuel tax issues.  Thanks again for your consideration.