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Some diesel fuel is dyed to have a red color to mark it as tax-exempt fuel. Dyed diesel is sold at a lower price than usual diesel and is used for non-highway farming or construction equipment, stationary engines, generators, and marine vessels. People call it farm diesel, marked fuel, or red diesel. Its on-road using is prohibited, except for some users approved by the Internal Revenue Service (IRS). But what is the fine for running off road diesel on public roadways?
The dyed fuel enforcement program was launched in 1994 by the government of the United States. It is run by IRS. Whether it is Washington, Texas, Florida, Ohio, Alabama, or other states, the fine for illegal use of dyed diesel is $10/gallon or $1,000 per violation (a tank with red diesel), whichever is greater. For instance, if 20 gallons of such fuel are revealed in your tank, the fine will be $1,000. Two such tanks will make it double. After the first violation, each repeated one will increase a penalty by $1,000 compared to previous violation, so the total amount of penalty depends on the number of violations. Alaska is the only state having special regulations about dyed diesel, which allow to avoid the fine in some cases.
What is the fine for running off road diesel
| State | The fine for illegal use of dyed diesel | Diesel Taxes/Fees (cpg) |
|---|---|---|
| Alabama | $10/gallon or $1,000 per violation | 46.3 |
| Alaska | special regulations | 32.4 |
| Arizona | $10/gallon or $1,000 per violation | 43.4 |
| Arkansas | $10/gallon or $1,000 per violation | 47.2 |
| California | $10/gallon or $1,000 per violation | 79.5 |
| Colorado | $10/gallon or $1,000 per violation | 44.9 |
| Connecticut | $10/gallon or $1,000 per violation | 70.6 |
| Delaware | $10/gallon or $1,000 per violation | 46.4 |
| District of Columbia | $10/gallon or $1,000 per violation | 47.9 |
| Florida | $10/gallon or $1,000 per violation | 54.9 |
| Georgia | $10/gallon or $1,000 per violation | 56.3 |
| Hawaii | $10/gallon or $1,000 per violation | 75.2 |
| Idaho | $10/gallon or $1,000 per violation | 49.4 |
| Illinois | $10/gallon or $1,000 per violation | 70.1 |
| Indiana | $10/gallon or $1,000 per violation | 76.2 |
| Iowa | $10/gallon or $1,000 per violation | 47.9 |
| Kansas | $10/gallon or $1,000 per violation | 51.4 |
| Kentucky | $10/gallon or $1,000 per violation | 43.9 |
| Louisiana | $10/gallon or $1,000 per violation | 44.4 |
| Maine | $10/gallon or $1,000 per violation | 57.1 |
| Maryland | $10/gallon or $1,000 per violation | 48.7 |
| Massachusetts | $10/gallon or $1,000 per violation | 47.9 |
| Michigan | $10/gallon or $1,000 per violation | 64.4 |
| Minnesota | $10/gallon or $1,000 per violation | 52 |
| Mississippi | $10/gallon or $1,000 per violation | 43.2 |
| Missouri | $10/gallon or $1,000 per violation | 41.7 |
| Montana | $10/gallon or $1,000 per violation | 53 |
| Nebraska | $10/gallon or $1,000 per violation | 51.4 |
| Nevada | $10/gallon or $1,000 per violation | 53 |
| New Hampshire | $10/gallon or $1,000 per violation | 44 |
| New Jersey | $10/gallon or $1,000 per violation | 41.9 |
| New Mexico | $10/gallon or $1,000 per violation | 47.2 |
| New York | $10/gallon or $1,000 per violation | 75.1 |
| North Carolina | $10/gallon or $1,000 per violation | 63.6 |
| North Dakota | $10/gallon or $1,000 per violation | 47.4 |
| Ohio | $10/gallon or $1,000 per violation | 52.4 |
| Oklahoma | $10/gallon or $1,000 per violation | 38.4 |
| Oregon | $10/gallon or $1,000 per violation | 54.7 |
| Pennsylvania | $10/gallon or $1,000 per violation | 63.6 |
| Rhode Island | $10/gallon or $1,000 per violation | 57.4 |
| South Carolina | $10/gallon or $1,000 per violation | 41.2 |
| South Dakota | $10/gallon or $1,000 per violation | 48.4 |
| Tennessee | $10/gallon or $1,000 per violation | 42.8 |
| Texas | $10/gallon or $1,000 per violation | 44.4 |
| Utah | $10/gallon or $1,000 per violation | 48.9 |
| Vermont | $10/gallon or $1,000 per violation | 53.4 |
| Virginia | $10/gallon or $1,000 per violation | 44.7 |
| Washington | $10/gallon or $1,000 per violation | 61.9 |
| West Virginia | $10/gallon or $1,000 per violation | 56.5 |
| Wisconsin | $10/gallon or $1,000 per violation | 57.3 |
| Wyoming | $10/gallon or $1,000 per violation | 38.4 |
IRS inspectors are authorized to check the fuel in licensed highway vehicles and issue fines to violators. However, some users listed below can get a license from IRS for using dyed diesel on-road:
- Public school districts
- Government agencies
- Nonprofit educational organizations
Tractors and other farm equipment have to use it within the distance of 25 miles from the registered address.
To secure yourself from buying red diesel illegally, pay attention to pump labels and fuel itself and try to buy it from suppliers you know to be reputable. It is a requirement of IRS that all pumps dispensing any dyed fuel must be labeled with a special inscription: “DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE”. A similar rule concerns dyed kerosene as well.
12 Jul 2023
About the author
Nicke drives a Land Rover Discovery equipped with a Garmin GPS, Dell Laptop mounted to a Jotto Desk laptop mount to accurately record his off-road trails. He is a member of the Chicago Land Rover Club, Rover Riders and the Solihull Society.
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