Higher Fines and Tougher Penalties for Red-Dyed Diesel Violations

Red-dyed diesel is used for agricultural purposes and is taxed at a lower rate than regular diesel fuel. Truck drivers are taking advantage of these lower prices by fueling up their vehicles using the red-dyed diesel, and some support higher fines for those drivers.

Kevin Schatz is the motor fuels and oil and gas tax supervisor for the North Dakota Tax Department. He testified before the House Agriculture Committee and said that red-dyed diesel is 44 cents per gallon less expensive. A driver illegally using the different fuel causes the state to lose 19 cents per gallon in fuel sales tax, which should be going to roads maintenance.

“If you’re going to use the roads, you have a responsibility to pay for the maintenance of those roads,” said Dan Rouse, attorney for the state Tax Department.

The proposed legislation would raise fines to between two and four times their current value as a deterrent to drivers from illegally using the diesel. The Tax Department began cracking down on violators in 2011 after citizens called and complained about drivers illegally filling their vehicles.

Some, though, aren’t entirely sold on the idea of raising the fines without determining if the current fines have been enough to halt the problem.

With no indication that the current fines are not enough, I wouldn’t vote for it,” said Rep. Craig Headland.

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