Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1931-04-18
THE cAsOLINE TAX RACKET
(The Oh 3 &c JonrnaIl 4


The gasoline tax racket has been added TO the num-
erons rackets that prey upon American business
With millions Of dollars to be made by evasion OF me a.
;a new racket Is already undermining the market structure
af the oil industry and like all the others sappng inc 1Ouno
s state ana fhe District Of Columbia has gaso-
line tax amounting to from to Scents gallon to which =
sdded in cases city or eounty tax. So IN
These taxes taking the country wh0e rnn from ~
"a AZ high as 40 per Of the price paid by the consumer
II sefevident that such situation is constant temp
ation evasion of the tax in one form or announcer
information from various parts Of the country indicates tnat
evasion Of the laws has been very serious factor IN de
moraizing the market.
dealer or refner who can evade small part Of the tax
has an important advantage his competitor and It mas
unqnestionaby contributed materially to the Dreahg cow"
Of the market structure. e
Of the marketing division for an indefinite period
are too high nevertheless they continue to mount rive
states increased their tax rates since the rst q TINS
year with further increases assured before 1ne ies
bodies IN session adjourn.
Tax directly tends toward these higher taxes Inc
recent action the Oklahoma legislature IN increasing the
gasoline tax from cents cents is example In the
hearing before Legislative body conclusvey shown
that if the could have collected the full amount OF the
t due under the AGENT would have yielded sufficient
revenue take Of the expenditures Tor Wch ne ao
tional cent assessed. 80
that in some estimated from 10 to 10 cent OF the tax
due not collected incidentally the revenue from Ine ezra
cent in Oklahoma is not TO pc devoted 90 inc
maintenance public highways the only possible excuse there
has been for eyyng special tax on gasoline consumer
1t is unnecessary discuss the methods used m evad
ing the Outstanding Of the exemption Of gas0
line used agricultural purposes AS political sop to the
farmer vote Legislators many states have excepted from
gasoline used tractors and other farm equipment
In actual practice this has resulted wholesale evasion
many through cooperation conspiracy with
the dealers has been possible avoid payment of the tax
on practically all gasoline used.
In one state exempted gasoline last year practically
40 per cent Of all the gasoline purchased
Taking Oklahoma again example, farm exemptions
during the first three months Of this year practically
three what they in the period last year with
approximately the activity in agricultural pursuits
cited where farmer obtained an old WORKOUT
tractor for dollars with intention Of using
and merely keeping his farm evidence of his right
to non-payment Of the gasoline tax
remedy for this situation viii not be so easy as
would been few years ago Ia the first place vlg
orous attempt should be made to get all states to adopt
uniform collection law and wherever this is impossible
they should agreement the essential fea
Although it may not appeal to refners IN gen.
era that will best through which the tax Is col
lected at the Of supply.
persons involved in collecting the the greater
the opportunity for evasion and the larger the expense IN
collection Collections close to the and frequently az
possible would do away with these temptations Laws regard
ing the operations Of dealers should be made stringent 50
that they would be held 100 per responsible for all moto
fuel sold Farmers should be compelled to make reports when
they claim exemption showing just what gasoline was used
for ON their farms.
Violations Of the law should not be treated minor
nisdemeanors but should be treated felony punishable
By imprisonment
The evil effects Of the rapidly growing gasoline racket
VIII necessitate such drastic steps later unless
effort s at to spreading.