What is the difference between dyed and clear diesel?
Clear diesel is subject to fuel tax, but not sales tax and is intended for the operation of motor vehicles on public roadways. Dyed diesel is not subject to fuel tax, but is subject to sales and use tax. It is intended for use in: • Construction equipment • Farm equipment • Recreational vehicles used off road • Generators • Heating units • Other equipment and machinery Dyed diesel is not intended for use in cars, trucks or other vehicles driven on the road. Using dyed diesel to operate motor vehicles on public roadways is subject to federal and state penalties. See §59-13-320.5. Dyed diesel used for off-highway purposes is subject to sales tax rather than fuel tax.
