Proposed Pennsylvania Tax Threatens Biodiesel

John Davis

A bill pending before the Pennsylvania State Legislature could hurt the biodiesel industry in that state.

Biodiesel Magazine reports an amendment to SB 901 would slap some new fuel taxes on places that sell biodiesel and could affect selling and blending biodiesel in surrounding states:

The amended legislation establishes a total of four of these registration fees:

– $5,000 for each biodiesel manufacturing facility within the state
– $5,000 for each location within the state where biodiesel is blended
– $100 for a person, other than a person that operates at a biodiesel production or blending facility, that sells, offers sale or otherwise transfers biodiesel or a biodiesel blend within the state, whether or not the that person operates a location within Pennsylvania where such activities are conducted
– $100 for each location, in excess of one, within Pennsylvania where a registered person sells, offers for sale or otherwise transfers title of biodiesel or a biodiesel blend

“This tax, which is imposed on distributors and retailers who are required by the state to sell this kind of fuel, adds more costs to handling the fuel,” [John Kulik, executive vice president of the Pennsylvania Petroleum Marketers and Convenience Store Association] said. “While some might argue that $100 does not seem like much, for businesses that have multiple locations, the tax can accumulate to thousands or tens of thousands of dollars. It’s a tax that they and their customers will be forced to pay.”

Ironically, the money raised is to be used to support Pennsylvania’s enforcement of the state’s biodiesel mandate, which started with a B2 blend last May and could be stepped up eventually to B20.

Biodiesel, Government, Legislation