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Old 09-02-2005, 02:52 PM   #1
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Fed's lift ban on use of dyed diesel:

http://www.forbes.com/business/comme...ap2204801.html

Not sure if state laws still restrict it's use to gov. farm and off road vehicles, if it is normally cheaper or if it just makes more available to keep costs in check, Ha Ha!, anyone know?
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Old 09-02-2005, 02:52 PM   #2
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Fed's lift ban on use of dyed diesel:

http://www.forbes.com/business/comme...ap2204801.html

Not sure if state laws still restrict it's use to gov. farm and off road vehicles, if it is normally cheaper or if it just makes more available to keep costs in check, Ha Ha!, anyone know?
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Old 09-02-2005, 04:06 PM   #3
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over on the dieselstop.com forum they are talking aboutit and some comment that they were dipped (tested) as late as yesterday. The guess is that they are allowing high sulfur fuels (like the red dyed off road) but that you still have to pay road tax, so if you run red on the road you are still in violation because of the tax issue. Nobody is quite sure yet.
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Old 09-02-2005, 04:42 PM   #4
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">if you run red on the road you are still in violation because of the tax issue. </div></BLOCKQUOTE>

Why would we still be in violation?

Here's an excerpt from the Forbes link that Mike posted: <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">IRS Lifts Taxes on Some Diesel Fuel
09.02.2005, 03:57 PM

The Internal Revenue Service acted Friday to expand the nationwide supply of diesel fuel by letting more vehicles use fuel intended for farm equipment and government vehicles.

The action allows commercial trucks and other vehicles to use special dyed diesel without paying a penalty excise tax. </div></BLOCKQUOTE>
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Old 09-02-2005, 05:17 PM   #5
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Rich,
I would be real skeptical. That dye stays in the tank for a long time. When the DOT man puts the paste on the end of the stick, the paste will pick up any trace of the dye and you're busted.

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Old 09-03-2005, 03:01 AM   #6
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">When the DOT man </div></BLOCKQUOTE>


George,

I've not used red dyed fuel nor do I plan to use it, however I'm curious why you feel the DOT would test the fuel after the Internal Revenue Service acted Friday to let vehicles use dyed diesel fuel without paying a penalty excise tax?

Is there such a deep distrust of what the government says or does that leads us to think they'd make a press release saying a tax is lifted and then that they'd fine us if we took advantage of it?

Actually, the way I interpret the press release when it says "expand the nationwide supply of diesel fuel", I'm thinking they'll be replenishing truck stops and gas stations with this dyed fuel to relieve the shortage.
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Old 09-03-2005, 08:40 AM   #7
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My Instructions received this morning.
If Dyed Diesel is used in any highway vechicle all taxes apply. It is only the penalties that are waived. Not all states followed and if the state does not waive the penalty dyed diesel may not be used. Wisconsin did not waive the penalty. There are 2 federal agencys (EPA & IRS). EPA waived the penality for high sulfur use over the highway. IRS HAS NOT WAIVED MOTOR FUEL TAX on dyed diesel. There are records to be kept and reported to IRS on all high sulfur used in highway vehicles.

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Old 09-03-2005, 12:55 PM   #8
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Hitchhiker:
I'm curious why you feel the DOT would test the fuel...
Is there such a deep distrust of what the government says or does...
</div></BLOCKQUOTE>
Petro answered these items very well...
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">If Dyed Diesel is used in any highway vechicle all taxes apply. It is only the penalties that are waived. Not all states followed and if the state does not waive the penalty dyed diesel may not be used. Wisconsin did not waive the penalty. There are 2 federal agencys (EPA & IRS). EPA waived the penality for high sulfur use over the highway. IRS HAS NOT WAIVED MOTOR FUEL TAX on dyed diesel. There are records to be kept and reported to IRS on all high sulfur used in highway vehicles. </div></BLOCKQUOTE>

Luckily for all you RVers running diesel, I've never yet heard of any state pulling over private RVs to "stick" their fuel tank.

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Old 09-03-2005, 02:58 PM   #9
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Geez, just run the darned stuff already.
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Old 09-04-2005, 05:55 AM   #10
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This may be a dumb question, but will the off road fuel run in a new (Ford) diesel without harming anything? I was told that it might, but naturally it is hard to get a sure answer. Has anyone run the red fuel in a pickup in any offroad situation that can supply this information?
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Old 09-04-2005, 06:12 AM   #11
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Not in North Carolina they love taxes too much and not going to give it up.
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Old 09-04-2005, 11:57 AM   #12
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Threevagabonds:
This may be a dumb question, but will the off road fuel run in a new (Ford) diesel without harming anything? I was told that it might, but naturally it is hard to get a sure answer. Has anyone run the red fuel in a pickup in any offroad situation that can supply this information? </div></BLOCKQUOTE>


I am not aware of any mechanical problems running red fuel. Tax on all clear diesel is collected at the terminal when the tank truck is filled. When a purchaser declares that he does not want to pay the tax then red dye is injected. This applies to low sulfur fuel. When high sulfur fuel is loaded red dye is injected as it is not intended for highway fuel and no tax is collected. Here in Wisconsin most high sulfur is for heating and off road machinery. The major reason for low sulfur is air polution.I hope I helped answer your question.

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Old 09-04-2005, 04:07 PM   #13
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George,

Last January coming into Quartzite, AZ from the north, everyone, including diesel RVs, were tested for red fuel. After 2 hours, they had caught 3 pickups using the off road fuel. Our Phaeton was checked and of course was fine.

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Old 09-04-2005, 05:13 PM   #14
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If they would drop the Fed tax in Florida $0.24 Cents and the State Tax $0.14 cents we would be doing better down here. Red Dye Fuel still have the sulfur in it down here and runs better than the hyw fuel.

The dye will stain the fuel system in the vehicle and be there for some time. Don't know what if any problems occur from the Dye with the newer Common Rail Diesel.

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