What is Red Dyed Diesel?

Been running the red juice for few years now available local station.
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How does anyone go about verifying you are used red Diesel? Are there diesel inspectors running around in this day of understaffed organizations? Would one be forced to submit to an inspection of their fuel tank, against their 4th amendment rights? Or do you loose your red diesel purchasing privilege's if you don't submit to an inspection?

You get pulled over and they inspect the tank. you go to jail if you refuse.
 
There is differences here in my area concerning off road diesel it is pretreated and equipment can go further on a tank of standard off road versus road diesel that contains up to 5% biodiesel.
 
You get pulled over and they inspect the tank. you go to jail if you refuse.
In NYS, the State Troopers will pull over a tractor trailer and then call for a DOT specialist NYS Trooper that will show up in a van or F150 and will then don a Tyvek suit and go to town on an inspection. The first thing they do is pull a sample out of the tank. If it's red you're dead...
 
It has been 11 years since I quit farming. I had a diesel tank for my tractors. My VW and my Dodge PU both ran on diesel. I never put red diesel in either one except once in an emergency. A little bit of that red dye goes a long ways, so if you cheat it takes quite a while to clear it out. I never got checked and did not know anyone else who did, but I imagine if the diesel police thought you were not buying enough highway diesel they would come and check.
 
We buy a semi load of off-road (red) diesel every year for farm machinery that is non-plated. There may be some people who think the risk of running non-taxed diesel in plated vehicles is worth the savings in taxes. I can assure you that if you spend enough time driving what looks like a farm truck and it's a diesel, you will get checked. I'll bet my brother has been checked at least 20 times in the last 20 years. One of his friends is a DOT officer and while he's on duty nobody is immune from being checked. He has checked my brother's trucks multiple times, always with a friendly, "hey, you mind if I dip your tank?"

Iowa's penalties for use of dyed diesel in a plated vehicle:

701—10.71(421) Penalty and enforcement provisions.
10.71(1) Illegal use of dyed fuel. The illegal use of dyed fuel in the supply tank of a motor vehicle
shall result in a civil penalty assessed against the owner or operator of the motor vehicle as follows:
a. A $200 fine for the first violation.
b. A $500 fine for a second violation within three years of the first violation.
c. A $1,000 fine for third and subsequent violations within three years of the first violation.
10.71(2) Illegal importation of untaxed fuel. A person who illegally imports motor fuel or undyed
special fuel without a valid importer’s license or supplier’s license shall be assessed a civil penalty as
stated below. However, the owner or operator of the importing vehicle shall not be guilty of violating
the illegal import provision if it is shown by the owner or operator that the owner or operator reasonably
did not know or reasonably should not have known of the illegal importation.
a. For a first violation, the importing vehicle shall be detained and a fine of $2,000 shall be paid
before the vehicle will be released. The owner or operator of the importing vehicle or the owner of the
fuel may be held liable for payment of the fine.
b. For a second violation, the importing vehicle shall be detained and a fine of $5,000 shall be
paid before the vehicle will be released. The owner or operator of the importing vehicle or the owner of
the fuel may be held liable to pay the fine.
c. For third and subsequent violations, the importing vehicle and the fuel shall be seized and a
fine of $10,000 shall be paid before the vehicle will be released. The owner or operator of the importing
vehicle or the owner of the fuel may be held liable to pay the fine.
d. If the owner or operator of the importing vehicle or the owner of the fuel fails to pay the tax
and fine for a first or second offense, the importing vehicle and the fuel may be seized. The Iowa
department of revenue, the Iowa department of transportation, or any peace officer, at the request of
either department, may seize the vehicle and the fuel.
e. If the operator or owner of the importing vehicle or the owner of the fuel moves the vehicle or
the fuel after the vehicle has been detained and a sticker has been placed on the vehicle stating that “this
vehiclecannotbemoveduntilthetax, penalty, andinteresthavebeenpaidtothedepartmentofrevenue,”
an additional penalty of $5,000 shall be assessed against the operator or owner of the importing vehicle
or the owner of the fuel.
10.71(3) Improper receipt of fuel credit or refund. If a person files an incorrect refund claim, in
addition to the amount of the excess claim, a penalty of 10 percent shall be added to the amount by which
the amount claimed and refunded exceeds the amount actually due and shall be paid to the department.
If a person knowingly files a fraudulent refund claim with the intent to evade the tax, the penalty shall be
75 percent in lieu of the 10 percent. The person shall also pay interest on the excess refunded at the rate
per month specified in Iowa Code section 421.7, counting each fraction of a month as an entire month,
computed from the date the refund was issued to the date the excess refund is repaid to the state.
10.71(4) Illegal heating of fuel. The deliberate heating of taxable motor fuel or special fuel by dealers
prior to consumer sale is a simple misdemeanor.
10.71(5) Prevention of inspection. The Iowa department of revenue or the Iowa department of
transportation may conduct inspections for coloration, markers, and shipping papers at any place where
taxable fuel is or may be loaded into transport vehicles, produced, or stored. Any attempts by a person to
prevent, stop, or delay an inspection of fuel or shipping papers by authorized personnel shall be subject
to a civil penalty of not more than $1,000 per occurrence. Any law enforcement officer requested by
the Iowa department of revenue or Iowa department of transportation may physically inspect, examine,
or otherwise search any tank, fuel supply tank of a vehicle, reservoir, or other container that can or may
be used for the production, storage, or transportation of any type of fuel.
10.71(6) Failure to conspicuously label a fuel pump. A retailer who does not conspicuously label a
pump or other delivery facility as required by the Internal Revenue Service, that dispenses dyed diesel
fuel so as to notify customers that it contains dyed fuel, shall pay to the department of revenue a penalty
of $100 per occurrence.
10.71(7) False or fraudulent return. Any person, including an officer of a corporation or a manager
of a limited liability company, who is required to make, render, sign, or verify any report or return

Ch 10, p.2 IAC
required by this chapter and who makes a false or fraudulent report, or who fails to file a report or return
with the intent to evade the tax, shall be guilty of a fraudulent practice. Any person who aids, abets, or
assists another person in making any false or fraudulent return or false statement in any return with the
intent to evade payment of tax shall be guilty of a fraudulent practice.
This rule is intended to implement 1995 Iowa Acts, chapter 155, section 36
 
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There are various things that use untaxed diesel or fuel oil, which are supposedly interchangeable to some degree. I used to take my kid to a local miniature railroad and the chief engineer would note that they used untaxed #2 fuel oil that was dyed red.

The Disneyland Railroad reportedly uses B98 biodiesel for its steam locomotives, but The Walt Disney Company claims that the 2% diesel they use is taxed road fuel. And the biodiesel is mostly from waste oils from their own restaurants.
 
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