Be careful of what you say!

dpantazis

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The tax man cometh. Question is how did they find them? We knew that this was going to happen sooner or later.

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

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


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."
 

happeetxn

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And there are those out there who want more government involvement in our daily lives. Dumb A**es
Craig
 

dpantazis

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craig-

we don;t NEED them to be involved, but we are CAUSING them to be involved. how did they find this individual? loose lips i suppose...

poorly handled by the state- YES!

technically, they ARE in violation of NOT paying the tax for use of the roads. well mostly- because they pay on whatever fuel they buy, not not harvest.

the same argument applies to hybrids- more use per dollar of tax paid. the kitty is going to be short at some point.

european countries already have this in place- SVO users required to pay road tax on fuel harvested and must log it all.

as well, iirc, the grease recycling lobby is big here in IL. there is one MAJOR company that pretty much is a monopoly on it is Mahoney. there are reports of their agents vandalizing other collectors and wvo folks's containers. the bond they are being asked for is for special fuel and for collectors and renderers.

this really is not unlike the stuff that JOAT was working on.
 

roosterdiesel

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:eek: :eek: :eek: :cussing: :cussing:

That's absolutely crazy! $2500 bond but they owe ~$250 since 2001.:confused: I guess I took the wrong math classes in school.
 
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David Wetzel, who has been exhibiting his car at energy fairs and universities, views state policies as contradicting stated government aims.

He may have told on himself, thinking he was doing a good thing.:doh:

Why the state chose to take this course of action may be the biggest question. There were tons of way to handle this, and "arresting" them was probably the dumbest. :confused:

But, maybe it was done on purpose??? Go after an older couple on a fixed income knowing it would cause outrage and force the government to take action??? Just a thought.-popcorn
 

Shadow_Grey

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And a follow up to this story:

http://www.herald-review.com/articles/2007/03/03/news/local_news/1021539.txt

SPRINGFIELD - 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."

At a hearing of the Senate Revenue Committee on Thursday, state Sen. Frank Watson, R-Greenville, introduced Wetzel as an ingenious man, trying to do the right thing, who received an unnecessary visit from state revenue agents.

Watson, the Senate minority leader, told the nine senators that the Illinois Department of Revenue directed Wetzel to post a $2,500 bond to run his car on vegetable oil.

"I think it's over the top," Watson said.

The committee awarded Wetzel, 79, a stunning victory, unanimously approving a Senate bill that would remove the bond requirement for those who use cooking oil in their private vehicles. Eight weeks ago, to the day, Wetzel was first visited by agents, who told him he owed taxes for the five years he operated his car.

"That's great," Wetzel said after the vote, adding he was not counting his chickens.

The bill must be approved by the full Senate and House before becoming law. Watson said he expects a lot of support from other legislators.

Wetzel told the committee how revenue agents visited his home one morning, telling him he had to pay fuel tax on each gallon of vegetable oil he used. He was later told he had to apply for a supplier's license and post a bond, or he would be charged with a Class 3 felony. Wetzel declined to apply because he did not fit the revenue department's definition of a supplier, which includes storage capacity of at least 30,000 gallons.

"I have no problem paying the taxes, but somehow they've got to make it easy," Wetzel said.

Three other men who have converted their vehicles to run on vegetable oil also attended the hearing.

David Ogden of Shelbyville, owner-operator of a vegetable oil-propelled semitruck, told the senators he was also threatened by the department of revenue with Class 3 felony charges. Class 3 felonies are punishable by up to five years imprisonment.

In an interview, Ogden said an agent once stopped him on the highway, telling him to stop immediately, because he did not have a supplier's license. However, he had that supplier's license.

"They're harassing me," Ogden said. "He's out there swinging his badge around. I was legal, and he didn't even know it."

Ogden said a department of revenue official later asked him to register as a foreign corporation. After he complied, sending in a $175 registration fee, he was later told that was not necessary.

While the revenue department tried to find ways to tax the new technology in some cases, Jay F. Gaydosh of Lincoln had a different experience.

Gaydosh told the senators that when he called the revenue department in October 2005 to inquire about paying taxes to run vegetable oil in his Suburban, he received a short message from a woman at the agency.

"She told me that vegetable oil was not a recognized fuel source in Illinois," Gaydosh said. A state employee, he has been driving his SUV, with the slogan, "powered by vegetable oil," around Springfield ever since.

Larry Doll, director of legislative affairs for the department of revenue, told the committee that the department supports changes in the law.

"We just want to make it easy for people to pay taxes," Doll said.
 

Tx_Atty

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What he really meant -

Larry Doll, director of legislative affairs for the department of revenue, told the committee that the department supports changes in the law.

"We just want people to pay taxes," Doll said.
 

dpantazis

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I am glad someone found the follow up and posted it.

1. The State of Illinois is REALLY screwed up. I never said that they were not. This just goes to show you how bad it is.

2. The plain truth is if we drive ON the roads, we HAVE to pay the use tax of 20 cents a gallon.

3. The problem is that the state(s) are not prepared to deal with this. IT will take intelligent lobbying and educating to make things right. I am surprised that JOAT has not chimed in because he has been working on this too- to keep everything honest.

Dennis
 

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