Biofuels and road taxes, the Alaska edition

In many places around the world, roads are financed at least in part by a tax added to the price of fuel. When we head to the pumps, we pay for a little bit of the road we drive out onto as we leave the station. But people who make their own biofuels don't pay these taxes and yet they drive on roads other people pay for. To make sure the load is balanced out a bit, many governments tax biofuels whether they are home-brewed or purchased. To get an idea of how this plays out in Alaska, check out this post over at Arctic Vegwerks.

The system for collecting waste oil or biodiesel taxes ($0.08/gallon state and $0.244/gallon federal) in Alaska starts like this:

The user must submit their Alaska Motor Fuel Tax on a monthly basis. Yeah, the tax office would really prefer it wasn't so often, but it's written into law. Seems like they would lose money processing a whole bunch of $5 checks every month! Some states exempt the first 2500 gallons, and the feds only require quarterly taxes, so lobby your Alaska legislators if you want to improve the law!

Arctic Vegwerks goes on to describe just how to fill out the state paperwork and quotes parts of the law that affect some green drivers up north. Got any good stories of how it affects you where you live?

[Source: Arctic Vegwerks]