[LDB]

This is my understanding and as my better half often reminds me is subject to being better understood. We deduct the entire amount of fuel purchased so we are getting a deduction on the fuel tax portion of the purchase. The fuel tax portion of the purchase goes into an imaginary piggy bank. Each time we buy fuel, money goes into the pig. Each state we drive in reaches into the pig at the end of the quarter to take out a set amount per gallon burned in that state. Where we buy is the factor determining how much is in the pig. If there isn't sufficient money in the pig then they reach into our pocket for the rest. If there's more than they need then we have a little surplus in the pig for the next quarter. Income taxes don't affect the pig. It is the temporary repository of fuel tax funds awaiting distribution to the states. Back to my GA/FL example. The purchase of 100 gallons has a net impact of $16.47 on the balance in the pig. It costs $8 more at the pump to create that $16.47 in the pig so we're ahead $8.47.

Pilot vs others. I don't know what tax bracket you're in so I'm going to use 25% since it works well with coins. Say your choices are Pilot or X or Y and Pilot has the best price. You could save $2 on your fuel purchase if you used Pilot over X. You'll get a rebate of that $2 and out of those 8 quarters uncle Sam decides to grab 2 of them. You're still ahead by 12 bits (6 quarters for those who aren't familiar with bits). Yes, it's double dipping but it still makes a net gain in my pocket.

Oh, a final thought on the fuel tax thing. Last quarter they dipped into my pocket for $5.87 and they dipped into the pockets of the 3 other drivers I know about for $134, $151 and $188. I don't suggest folks are going to make money this way, just that they're going to keep more of what they've previously made. It's some nuisance but I figure it's worth about $500 a year to a solo, maybe more and probably could be close to $100 a month for teams.