Fuel Taxes and Fees, Are They Correct?

Many fleet managers, controllers and CFO’s may be surprised if they were overpaying for fuel taxes and fees that are disguised as legitimate government fees. We‘re not since we see it everyday at Sokolis Group. Prior to becoming Sokolis Group clients, these companies signed off on fuel invoices that had additional fuel taxes for which they were not liable, no tax charged when in fact they were liable for the tax, and bogus fees which are nothing more than an additional revenue stream for the fleet fuel supplier.

A few examples: By not knowing the letter of the law and having the proper forms on file with the taxing state one company was paying the state excise highway fuel tax for deliveries of off highway, non road taxable, dyed diesel fuel. Receiving 7500 gallon transport loads this amounted to an overpayment of more than $1500 per load of tax for which, if proper forms were filed, there was no tax liability. Never questioned and paid. Worse yet, after filing the correct forms, they can not file for a retroactive fuel tax refund.

Another company for a small bulk delivery of fleet fuel had so many additional charges on the fuel invoice paid a total of $8.25 per gallon on a delivery of 200 gallons. Never questioned and signed off by fuel management person and paid. Fortunately we were able to recoup that money for our client from the fuel vendor,

Due to a misinterpretation of the tax law by the fuel vendor, no tax at all was charged for a client using the fuel in an off highway application. We rectified the situation and the client had to pay the correct fuel taxes due and the vendor now has had the law clarified. This client was saved from penalties and interest had this not been discovered in a timely fashion.

Just a few examples of what we discover every day for our clients at Sokolis Group. Our clients have the peace of mind knowing that fleet fuel experts are looking at and dissecting every fleet fuel transaction. Who is watching your back?

Sokolis Group is a fuel management & fuel consulting company that helps clients with fuel planning, fuel programs, fuel audits and fleet fueling to name a few. www.FuelManagementSokolisGroup.com 267-482-6155

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