What are the specific requirements of dyed diesel?
- The fuel must be dyed prior to the removal at the terminal rack.
- The
dyed diesel must be properly labeled.
What does "properly
labeled" mean?
- Storage tanks, containers, or facilities must be labeled with a legible & conspicuous notice stating "Dyed Diesel Fuel, Non-Taxable Use Only".
- Bills of lading and invoices accompanying any sale of dyed diesel must contain a legible & conspicuous notice stating "Dyed Diesel Fuel, Non-Taxable Use Only, Penalty For Taxable Use".
Why must I report my dyed diesel transactions?
These transactions must be reported in order to track the tax-free sales and use of the dyed diesel fuel. Additionally, UST and EIF reporting applies to dye diesel.
How do I report my dyed diesel transactions?
You report the transactions by separating out your dyed diesel activities from your other special fuel transactions.
What are the violations for not properly using dyed diesel?
- Knowingly selling or attempting to sell dyed diesel fuel for highway use:
- First
Offense: $1,000 fine Class A misdemeanor.
- Second
or Subsequent Offense: $5,000 fine Class 4 felony.
- Knowingly
sell, store, or transport dyed diesel fuel without the required
notices:
- First
Offense: $500 fine
- Second
or Subsequent Offense: $1,000 fine
- Having dyed diesel in the fuel tanks attached to a motor vehicle required to be registered for highway purposes:
- First
Offense: $1,000 fine, Class A misdemeanor
- Second
or Subsequent Offense: $5,000 Class 4 felony
- Knowingly
selling or attempting to sell dyed diesel fuel for highway use or for use in
a recreational-type watercraft:
- First
Offense: $1,000 fine Class 4 felony.
- Second
or Subsequent Offense: $5,000 fine Class 2 felony.
- Knowingly
possessing dyed diesel for use in recreational-type watercraft:
- First
Offense: $1,000 fine Class A misdemeanor
- Second or Subsequent Offense: $5,000 Class 2 felony
How are violations discovered?
- Word-of-mouth or anonymous referrals
- Account
reviews
- Audits
- Site
inspections
