Level Sensor Height Change conversion to gallons

float gallons = measureINches() * 0.125; // or so

gallons = int(gallons *4) / 4.0; // This rounds down to quarter gallons

That sounds like it will work! Let me give it a try.

If the sensor is measuring the distance to the liquid, how does adding liquid INCREASE the distance?

This is a function that is currently working. I added a tare function and afterwards put in a statement that reads
gallons = tare - inches;