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State tax varyies from state to state and you'll need to do some home work on how to do it properly. Don't hesitate to call your department of revenue to find your answers. Lot's more on this subject in this thread, really starts with that info about page 5...

Also there's another thread in the Alt. fuels section about O ring capabilities that Beyond Biodiesil did. I belive it said the original o rings wouldn't handle over 25% gas for long..... You may want to read it.