Revenue to Conduct Diesel Fuel Compliance Checks in Hamilton, Sequatchie Counties on August 19

DUNLAP, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue will be conducting roadside diesel fuel compliance checks in Hamilton and Sequatchie Counties during daylight hours on Tuesday, August 19. Internal Revenue Service fuel compliance officers often participate in these checks and may be present at this location.

The purpose of these compliance checks is to ensure that no untaxed dyed diesel fuel is being used in vehicles operated on the public highways. When red dye is placed in diesel fuel, this dye indicates that no tax has been paid on the fuel. Under both Tennessee and federal law, it is illegal to use dyed diesel fuel in a licensed motor vehicle or in a vehicle actually used on the public highways. Penalties for the first violation of this law are the greater of $1,000 or $10 per gallon of dyed diesel fuel involved.

“Dyed diesel fuel is sold at a cheaper rate than clear diesel fuel because it is sold without state and federal tax,” said Revenue Commissioner Reagan Farr. “These checks ensure that untaxed fuel is not being used in ways prohibited by Tennessee law.”

Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).