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What are the restrictions on use of dyed fuel?

  • The use of dyed diesel fuel is not allowed for on-road use in licensed vehicles in North Dakota.  Under ND law, the injection of red dye into diesel fuel indicates the fuel has not been subject to an excise tax. Instead, dyed diesel fuel is subject to the special fuel excise tax of two percent of the sale price.
  • Dyed diesel fuel is sold for use in off-road, non-licensed equipment used for farming or construction and is exempt from the per gallon fuel tax. Dyed fuel continues to be taxed at a different rate and is intended for off-road non-licensed vehicle use only.

Source:  Office of State Tax Commissioner