Diesel

Stuart said:
Interesting. It's always been my understanding that Customs in Arizona in not authorized to collect duties. I've been told this by the Customs themselves when I had an extra bottle of two or liquor. They can confiscate, or let you go, but they have no power (or mechanism) to collect duties on any overages.

ADOT is obviously a whole different organization. What you describe borders on ridiculous. The "Average Joe" bringing back a couple of cans/jugs of fuel with their jetskis or off-road vehicles is extremely common. Having to pay taxes and surcharges on this is insane! I mean, I can see it if you were importing a tanker truck of fuel. But anything under 50 gallons is but a drop in the bucket, so to speak. I guess the 20% drop in AZ tax revenue is hurting the state more than we know and they're going to try to make up every penny of it in every way they can. :roll:

I tow a boat with a 250 gallon capacity and nobody has ever asked me how much fuel is in it. Maybe because the tanks are physically part of the boat and not "loose" or auxillary. But what's to stop me from filling it to the top in Sonoyta and towing it home, then using that gas for my car? Nothing. Absolutely nothing. Except that I hate towing it full because it's like a bloated whale on the trailer with all that extra weight.

Time for the TransferFlow tank. Like I said earlier, if it appears to be original factory equipment (not aftermarket or an accessory), you shouldn't have problems going either way over the border. Sub - I may contact you for assistance. I'm sure it's not that hard to do, but looks to be a two man job anyway. I'll buy the beer! Let me see how much shipping is versus SuperDuty HQ's installed price.
The actual tax that ADOt is collecting is a drop in the bucket......it's the "administrative service charge" of $25 that is the big one.
 
S

Submarine

Guest
Mordida Arizona Style

Yes that is the kicker. Here is the statute they are using:
http://www.azleg.gov/FormatDocument.asp ... ocType=ARS

28-5607. Fuel imported by other than licensed supplier; payment of tax; fee; import limitation

A. A person who is not licensed as a supplier and who imports motor fuel from a point outside this state to a point in this state shall pay both:

1. The tax at a department facility approved by the director before importing the fuel.

2. A twenty-five dollar administrative processing fee.

B. A person who is not licensed as a supplier and who causes motor fuel on which taxes have not been collected to be transported from a point outside this state to a point in this state shall pay to the director the following:

1. The tax required by section 28-5606 or 28-8344.

2. A penalty equal to the tax required by section 28-5606 or 28-8344.

3. Interest of one per cent per month or portion of a month on the tax.

C. A person who is not licensed as a supplier may not import more than sixteen thousand gallons of motor fuel per calendar year.


So it seems to me that this statute is of dubious constitutionality as far as Art 1 sec 10 of the Constitution goes, and quite possibly elsewhere.
"No state shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing it's inspection laws: and the net produce of all duties and imposts, laid by any state on imports or exports, shall be for the use of the treasury of the United States; and all such laws shall be subject to the revision and control of the Congress. "
Also, if Mexico collects any taxes on fuel sales then we are exempt from that statute. I've been looking for that but gotta pick it up later. Anyone wanna try?

I did email as many news organizations as I could and I suggest others do. Time to shine a light on this shakedown. Mordida.....Arizona Style!

I hope you made them give you a receipt Joe! Seemed like ADOT just opened up a can of angry wasps!
 
S

Submarine

Guest
More issues:

Key Fuel Programs – International Fuel Tax Agreement
The International Fuel Tax Agreement (IFTA) is a single system for collecting and distributing fuel taxes based on where fuel is consumed rather than where it is purchased. IFTA simplifies fuel tax registration and reporting requirements for
inter-jurisdictional motor carriers, such as truckers who travel frequently to other provinces or into the United States.

Under IFTA, carriers register with their base jurisdiction and receive an IFTA licence and decals allowing them to travel through other IFTA member jurisdictions. Please see Register for a Carrier Licence for more information about registering.

Registered carriers file a single quarterly fuel tax return and make payment to their base jurisdiction. The base jurisdiction processes the return and forwards funds to, or requests funds from, each jurisdiction for net fuel taxes. Please see How to File for more information on filing an IFTA tax return.

IFTA jurisdictions currently include all Canadian provinces and American states, with the exception of Alaska, the District of Columbia, and Hawaii. The Yukon Territory, Nunavut, Northwest Territories and Mexico are also currently not members of IFTA.

Commercial motor vehicle means a motor vehicle that is used interprovincially or internationally for the commercial carriage of passengers or goods and that:

has two axles and a gross vehicle weigh or registered gross vehicle weight exceeding 11,800 kg (26,000 lbs), or

has three or more axles regardless of weight, or
when combined with the trailer with which it is used, has a gross vehicle weight in excess of 11,800 kg (26,000 lbs)
but does not include a recreational vehicle

You do not need an IFTA licence or trip permit if:

you use your qualified motor vehicle exclusively as a recreational vehicle for personal use by an individual,

you use your qualified motor vehicle exclusively as an ambulance, school bus, fire truck, taxi or police vehicle, or
you use motive fuel (diesel, biodiesel or a combination of diesel fuels) to operate a commercial motor vehicle registered for farm use outside of British Columbia

If you are not registered under IFTA, you must purchase trip permits each time your vehicle enters another jurisdiction or returns to BC or you may be subject to fines or penalties.

For more information please see Bulletin MFT 008, International Fuel Tax Agreement, or the British Columbia - IFTA Operating Manual
 
S

Submarine

Guest
Fight 'em Joe!

28-5928. Legal remedies

A. An injunction, a writ of mandamus or any other legal or equitable process shall not issue in an action or proceeding in any court against this state or against any officer of this state to prevent or enjoin the collection of any tax, fee, penalty or interest required by this chapter to be collected.

B. A person against whom an assessment under this chapter has become final pursuant to section 28-5924 may bring an action against the director in the Arizona tax court for recovery of the amount paid if the person:

1. Pays the amount stating it is paid under protest.

2. Verifies and states the grounds for objection to the legality of the payment.

3. Pays the amount within ninety days after the assessment becomes final.

C. The person shall institute the action provided in subsection B of this section within thirty days after payment under protest. Failure to bring an action within thirty days constitutes a waiver of all demands against this state on account of the protested payment. A court shall not consider a ground for illegality other than that stated in the protest filed at the time of payment.

D. If judgment is rendered for the plaintiff, the director shall both:

1. Credit the amount of the judgment on any tax, fee, penalty, interest or other amount due from the plaintiff under this chapter.

2. Refund the balance to the plaintiff.

E. A court shall not render judgment in favor of the plaintiff in an action brought against the director to recover any amount paid under this chapter if an action is brought by or in the name of an assignee of the person who paid the amount.

F. A person aggrieved by a decision or order of the director issued pursuant to section 28-5924, except for an assessment for taxes, fees, penalties or interest, may seek judicial review of the decision or order in the Arizona tax court pursuant to title 12, chapter 7, article
 
Here's where they get you on any tank add-ons or larger then stock fuel tanks....

28-5608. Fuel imported in fuel tanks; violation; classification

A. An owner or operator of a motor vehicle, watercraft or aircraft who imports motor fuel into this state in the fuel tank or tanks of a motor vehicle, watercraft or aircraft in a quantity exceeding the capacity of the fuel tank or tanks of that vehicle, watercraft or aircraft according to the manufacturer's stock specifications shall pay to the director the tax required of suppliers on the excess motor fuel.

B. A person who violates this section is guilty of a class 2 misdemeanor.
 
Well, after reading all of the garb age in the ARS....it appears that I was overcharged for the diesel tax....I should have been charged 19 cents/gallon, instead of the 26 cents/gallon. I'm sure that everyone that came thru Lukeville and got stopped, also got mischarged!!!

Class Action Lawsuit???? LOL..........
 
S

Submarine

Guest
Well we need to start complaining or they will just keep doing it. Like cockroaches, they will run if you shine a light on 'em.
 

Stuart

Aye carumba!!!
Staff member
Hey DM,

Start here to figure out what you need:

http://www.transferflow.com/gm_tanks_0.html

Look here to find out locally who does it, then call around:

http://www.transferflow.com/fuel_tank_installers.html

To give you an idea, Super Duty HQ quoted me $1084 installed and out the door; 1/2 day job. They said it takes about to or three days to get the tank, so you have to schedule in advance. Basic tank kit for my F-250 is $743 from TransferFlow. I didn't get a quote on shipping. So, they're charging about $340 for installation (shipping is probably included in that, too). Replacement tank weighs 175 lbs. and is shipped by commercial truck carrier, so it's going to cost a bit to ship due to weight and bulk size.
 
S

Submarine

Guest
Rates can change but I believe it was around $100 for shipping and they used Yellow Freight or Rodeway and it was door-to-door. We did it in less than 3 hours so probably less time knowing how the fuel lines come off etc. Make sure you have a pretty empty tank before you want to do it though!



Anyone who gets jacked for mordida by ADOT needs to call Gary Harper of 3 On Your Side at 602-207-3431. Around 9-10 am seems to be a good time to get ahold of him but he does return phone calls. Gary likes to visit Rocky Point too and is very interested in this story, but he needs some first person accounts.
 
F

FIESTAFROG

Guest
OK, I just got back from RP. I had my 80 gallon tank installed in the bed. I came across with about 115 gallons of diesel total. I got the rude mexican guy that cant speak english. How did HE get a job in border patrol? Anyways. I couldnt understand a word he was saying and he was very rude. I just played dumb. After trying to undersand him for 15 minutes, He let me go! no tax, no fine, nothing! I paid $2.30 a gallon.
 
A

AZ Miguel

Guest
AZ Miguel said:
I've also been hassled by Customs when returning with my tank in the back filled. They act as if it's going to destroy our nation. I know they have a job to do and I respect that but when I'm not doing anything illegal and I have to to give them the stare like: what the #$%^% do you idiots want? then it gets annoying and they let me go.

FIESTAFROG, Sounds like you got the same treatment I get.
 
S

Submarine

Guest
Well a disappointing report from 3 On Your Side about ADOT taxing fuel crossing the border. Nothing about the legalities of ADOT's actions, the cost vs. benefit, or the fact that we are being double taxed. I like the 'rolling bomb' excuse, as if suddenly fuel cans that are DOT approved are a safety hazard if actually used.


Arizona officials taxing gas brought in from Mexico

More 3 On Your Side Reports

05:30 PM Mountain Standard Time on Wednesday, July 16, 2008

By Gary Harper / 3 On Your Side

PHOENIX -- Looking for a break on high gas prices?

Mexico seems to be the answer for a lot of people. That's because gas in Mexico is just downright cheap compared to what we're paying.

It's so cheap that many Valley residents started transporting gas from Mexico back into Arizona so they could use the gas here.

But then state officials found out what was going on and put the hammer down.

Joe Kolisek likes his toys. He also likes to take them down to Rocky Point in Mexico so he can enjoy them on the ocean.

But before crossing back into the United States, Kolisek always brings back extra fuel for his jet skis, and why not? Gas isn't nearly as high in Mexico as it is here.

"The gas prices are a couple bucks cheaper a gallon down there and diesel fuel is about half the price," Kolisek said.

And cheap diesel fuel in Mexico is why Kolisek always fills up a 50-gallon barrel and brings it back with him to Phoenix.

The reason? It helps offset the high prices here.

But on a recent trip, Kolisek got a surprise inspection as he tried to cross back into the United States and that inspection wasn't done by Customs. It was performed by the Arizona Department of Transportation.

"The ADOT agent told me that they started cracking down two to three weeks ago," Kolisek said.

He's right. ADOT tells 3 On Your Side that there is such a large number of people transporting fuel back into Arizona that the agency started dispatching agents around April to inspect and tax anyone who gets caught at the border.

"We collected around $4,000 or $5,000 in taxes and by June that amount had doubled," said ADOT spokeswoman Cydney Demodica.

Kolisek wasn't happy at all when he had to come up with tax money for the fuel he got caught with.

"I was hit with a $25 service fee and also taxed at 26 cents a gallon for the fuel I was bringing in," he said.

The grand total? Kolisek had to cough up $38 and hand it over to the ADOT agent.

So much for saving money on cheaper gas.

But the transportation department insists it's not harassing people.

"It isn't that ADOT is picking on them," Demodica said. "This is what the law requires us to do."

But, don't trying telling that to people like Kolisek.

"They see people are taking advantage of crossing the border and they want to get their tax money," he said. "It's sad."

I want to clarify something. If you buy gas in Mexico and the gas is actually fueling an engine, then you are not taxed. For example, if you fill up your motorhome or you fill up your sand rail, that's fine because it's feeding a motor.

However, if the gas is simply in containers or barrels, that is when you can and will get hit by the tax man.

ADOT says it really boils down to a safety issue, too, because driving down the road with barrels of fuel can be like a "rolling bomb."
 
A

AZ Miguel

Guest
Submarine said:
However, if the gas is simply in containers or barrels, that is when you can and will get hit by the tax man.

ADOT says it really boils down to a safety issue, too, because driving down the road with barrels of fuel can be like a "rolling bomb."
So if the state charges you tax for importing from Mexico because it's a safety issue, then what reasoning a are they using that charging a tax will remove the risk?

One thing I've experienced with ADOT over the years is they have as many explanations for any one item as they do employees.

More then likely someone that has no authority to approve this operation set it up and I expect it'll be removed soon after this broadcast.
 

Stuart

Aye carumba!!!
Staff member
It all comes down to revenue (or current lack thereof), as I said in a previous post. The state is hurting right now and will do everything in its power to get money out of your wallet and into its coffers. ADOT has never done this before and doing it now is absolutely ridiculous.

Can I fan the flames to prove my point? Today's AZ Republic (and dear friend of both Sub and I, one E.J. Montini), pointed out how the state plans on installing a whole network of photo radar cameras around the state. Get caught by one and you'll have to pay about a $180 fine. HOWEVER - if you pay your fine, the ticket is not reported to MVD or your insurance company and no points are logged against your driver's license. So, if you can afford to pay the fines, you can drive just as fast as you want and nothing will ever come of it. The state pockets the money, estimated to be about 90 MILLION A YEAR.

What a scam! "In the name of public safety" my ass! The state should come out and admit that this is revenue enhancement and has absolutely nothing to do with public safety. They're gonna take your picture, mail it to you, and expect you to send them a check. It's total bullshit.

I guess in some ways, it beats the old system of having to pay the fine, then waste a day as punishment going to driving school (what a joke that is, too.) I'm surprised the driving school operators aren't lobbying and fighting the new camera scheme. Look at how much revenue they're getting cut out of!

I'm really, really, really starting to hate Arizona government. It's time for a revolution. I think I'll start it by offering to pay a bounty for anyone who takes out a photo radar camera! :lol:
 
Thanks Sub.....now ADOT (and Customs) will probably have my photo up and I'll get pulled over each time I cross! :roll: :twisted: I guess I'll just call the Customs office at Lukeville on the way home, and if ADOT is still on duty, I'll stop in Sonoyta and have something to eat!

I was somewhat disappointed in Harper's take on the issue (on the newscast)....at the end agreeing that it was partly a safety issue. If that's the case, ADOT should outlaw any fuel containers.

Also, those of you considering adding tanks in the bed of your truck, or increasing the size of your stock tank, ADOT could begin hitting you too. The ARS addresses that issue...and you are considered importing fuel if you have anything larger then a "stock" tank. Pretty soon, they'll be putting the vehicles up on the lift at the border and checking to see if you have a larger tank!
 
F

FIESTAFROG

Guest
Im beggining to hate the US more and more! Its no longer about the people but the all mighty buck! We have short memories. Remember the tea tax?
 
J

Jamie75

Guest
This is total bull shit. Is just our greedy ass state that is doing this or are the people of CA, NM, and TX having to deal with it too??
 
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