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Tax Commissioner: Dyed Fuel Enforcement Program Proving Successful

Wednesday, August 26, 2015

Contact: Jen Raab, Public Information Officer, 701.328.3039

Tax Commissioner Ryan Rauschenberger today shared information about the state's dyed diesel fuel enforcement program. At a media availability eight miles east of Bismarck, Rauschenberger said the program has proven successful in its short four year existence.

"The dyed diesel fuel tax reduction statute has been around since 1999. In 2011, the Office of State Tax Commissioner received legislative authority to begin conducting enforcement activities to ensure compliance with the statute." Rauschenberger stated. "The enforcement program was started to help ensure the proper usage of dyed fuel."

Diesel fuel that is dyed red is purchased at a reduced North Dakota tax rate of 4 cents per gallon and is only to be used for agriculture, industrial or railroad purposes, per North Dakota Century Code (N.D.C.C.) ch. 57-43.2. There is no federal tax on dyed fuel. Vehicles operating outside of that scope are not legally able to use the dyed fuel at the reduced tax rate. Clear diesel fuel is regularly taxed 23 cents per gallon by the state and 24.4 cents per gallon federally.

"Our motor fuels tax division conducts anywhere from five to twelve separate enforcement operations each year in various locations across North Dakota," added Rauschenberger. "We conduct the enforcement operations in conjunction with Highway Patrol safety inspections."

Since the enforcement program began in October 2011 through the end of 2014, an average of nearly 2 percent of vehicles tested were confirmed violations. Both the state of North Dakota and the Internal Revenue Service (IRS) issue penalties that vary based on the number of previous violations. The first violation combined penalty is a minimum $1,500 ($500 state, $1,000 federal), with penalties increasing for each subsequent violation.

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North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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News

Sign up to receive new releases via email.  Select the "ND Tax News" list.

 

Tax Commissioner: Dyed Fuel Enforcement Program Proving Successful

Wednesday, August 26, 2015

Contact: Jen Raab, Public Information Officer, 701.328.3039

Tax Commissioner Ryan Rauschenberger today shared information about the state's dyed diesel fuel enforcement program. At a media availability eight miles east of Bismarck, Rauschenberger said the program has proven successful in its short four year existence.

"The dyed diesel fuel tax reduction statute has been around since 1999. In 2011, the Office of State Tax Commissioner received legislative authority to begin conducting enforcement activities to ensure compliance with the statute." Rauschenberger stated. "The enforcement program was started to help ensure the proper usage of dyed fuel."

Diesel fuel that is dyed red is purchased at a reduced North Dakota tax rate of 4 cents per gallon and is only to be used for agriculture, industrial or railroad purposes, per North Dakota Century Code (N.D.C.C.) ch. 57-43.2. There is no federal tax on dyed fuel. Vehicles operating outside of that scope are not legally able to use the dyed fuel at the reduced tax rate. Clear diesel fuel is regularly taxed 23 cents per gallon by the state and 24.4 cents per gallon federally.

"Our motor fuels tax division conducts anywhere from five to twelve separate enforcement operations each year in various locations across North Dakota," added Rauschenberger. "We conduct the enforcement operations in conjunction with Highway Patrol safety inspections."

Since the enforcement program began in October 2011 through the end of 2014, an average of nearly 2 percent of vehicles tested were confirmed violations. Both the state of North Dakota and the Internal Revenue Service (IRS) issue penalties that vary based on the number of previous violations. The first violation combined penalty is a minimum $1,500 ($500 state, $1,000 federal), with penalties increasing for each subsequent violation.

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