Buying gas wholesale from another state to avoid gasoline tax?

Question

So I see that states each charge a gasoline tax of like 25 cents each. Lets say I bought 100 gallons wholesale and had it shipped from another state. Since states can't charge taxes on intrastate trade I was wandering if I wouldn't have to pay the state gas tax.

Answer 1

No, but you would have to pay a sales or use tax in your own state.  Nice try.

Answer 2

loopholes in the tax code for the masses are rare and when you find one its only for a few bucks if its high frequency.  

If its more than just a few bucks (like not paying the sales tax on a washing machine you plan to take across state line) then you wouldnt benefit from this one more than a couple of times in your lifetime (and this is not real loophole--the new state would require you to be honest and pay the "use" tax).

your idea then has no tax loophole, if you could pull it off you would still be required to pay the "use" tax to the new state.

Answer 3

OK, first of all, states *can* charge taxes on items from other states. I know for a fact if you live in Massachusetts (has sales tax) and buy something from New Hampshire (no sales tax), the store in NH has to charge you the MA state tax if you are having the item shipped to a MA address.

But anyway -- leaving all that aside -- where and how do you plan to store 100 gallons of a highly volatile, flammable liquid until you get around to using it? Are you going to keep it in milk jugs out on the back porch?

Answer 4

Transporter of Fuel are licensed by the Federal government.  Also need a special state permit for transporting. HazMat certification.  Transporting without these would cost you 10k plus in fines.  Storage of that quantity is also regulated and those fines would be another 10k plus.  Probably some jail time thrown in.  Friends own and operate a fuel company.

Answer 5

You would still have to pay tax.  States can, and do, tax "use" within their state of things purchased in other states by their residents.  (This does not apply to putting gas into your car while driving home from another state, but it does apply to most other purchases in another state, including Internet orders, although enforcement is rare for small transactions.)