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Red-Dyed Diesel Fuel in Arizona

Kathy Boyle, Public Affairs ManagerBruce Bartholomew, Public Affairs Manager

Mark Zimmerman, Senior Division Administrator, Revenue and Fuel Tax Administration

Karl Goldsmith– Enforcement Services

Arizona Department of TransportationMarch 17, 2015

NOTRed Diesel is Street Diesel

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WhatNon-taxable diesel fuel restricted to specific applications

WhereOff-road use in agriculture and road construction activities

WhyTo provide tax relief to individuals/businesses that do not

contribute to wear and tear of Arizona’s highways

Red-Dyed Diesel FuelProgram Overview

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Red-dyed diesel fuel is used illegally to avoid fuel taxes

Reduced fuel tax revenue shrinks Arizona’s highway fund

Less funding for highways means:• delayed maintenance• fewer new roads• more congestion• less efficient, less reliable roadways for your industry

Red-Dyed Diesel FuelWhat is the Issue?

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Red Diesel is not Street Diesel

Use of red-dyed diesel fuel in a vehicle on Arizona’s public roads is a violation of state law

Per state law, the Arizona Department of Transportation is empowered to enforce fuel tax laws

• Enforcement and Compliance Division • Sworn officers conduct inspections• Criminal and civil investigations

Red-Dyed Diesel FuelEnforcement of Program Rules

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First offense:• Minimum penalty of $1,000 or $10 per gallon of dyed diesel

fuel involved, whichever is more.

Multiple offenses:• The first offense penalties are multiplied by the number of

occurrences.

Can be criminal charges and civil penalties

Red-Dyed Diesel FuelPenalties for Improper Use

Per state law:

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ADOT public outreach program•Educate industry leaders•Educate fuel users

Call to Action•Help ADOT convince people to “Pay Their Fair Share”

Red-Dyed Diesel FuelEducational Outreach