Originally Posted by
Passages
Below is a copy/paste on legal requirements for dyed diesel. Look at the bottom and note penalties associated with using dyed diesel in recreation boats. WTF??? Is that prohibition something new??
Motor Fuel Requirements
What are the specific requirements of dyed diesel?
The fuel must be dyed prior to the removal at the terminal rack.
The dyed diesel must be properly labeled.
What does "properly labeled" mean?
Storage tanks, containers, or facilities must be labeled with a legible & conspicuous notice stating "Dyed Diesel Fuel, Non-Taxable Use Only".
Bills of lading and invoices accompanying any sale of dyed diesel must contain a legible & conspicuous notice stating "Dyed Diesel Fuel, Non-Taxable Use Only, Penalty For Taxable Use".
Why must I report my dyed diesel transactions?
These transactions must be reported in order to track the tax-free sales and use of the dyed diesel fuel. Additionally, UST and EIF reporting applies to dye diesel.
How do I report my dyed diesel transactions?
You report the transactions by separating out your dyed diesel activities from your other special fuel transactions.
What are the violations for not properly using dyed diesel?
Knowingly selling or attempting to sell dyed diesel fuel for highway use:
First Offense: $2,500 fine Class A misdemeanor.
Second or Subsequent Offense: $5,000 fine Class 4 felony.
Knowingly sell, store, or transport dyed diesel fuel without the required notices:
First Offense: $500 fine
Second or Subsequent Offense: $1,000 fine
Having dyed diesel in the fuel tanks attached to a licensed motor vehicle:
First Offense: $2,500 fine, Class A misdemeanor
Second or Subsequent Offense: $5,000 Class 4 felony
Knowingly selling or attempting to sell dyed diesel fuel for use in a recreational-type watercraft:
First Offense: $5,000 fine Class 4 felony.
Second or Subsequent Offense: $10,000 fine Class 2 felony.
Knowingly possessing dyed diesel for use in recreational-type watercraft:
First Offense: $2,500 fine Class A misdemeanor
Second or Subsequent Offense: $5,000 Class 2 felony
How are violations discovered?
Word-of-mouth or anonymous referrals
Account reviews
Audits
Site inspections