Gov. Kay Ivey on Thursday ordered Alabama law enforcement to halt dyed diesel enforcement for the next 120 days, shifting enforcement priorities as farmers and timber operators contend with rising fuel costs during peak harvest season.
The directive, effective immediately, instructs the Alabama Law Enforcement Agency to prioritize commercial motor vehicle inspections involving threats to public safety rather than inspections aimed at identifying dyed diesel fuel in commercial vehicles.
Dyed diesel is essentially diesel fuel marked with red dye because it is sold for tax-exempt, non-highway uses such as farm machinery and other off-road equipment. Under normal rules, it generally cannot be used to power vehicles traveling on public highways.
Ivey said sharply higher diesel prices have placed particular pressure on Alabama’s agriculture and timber industries, many of which already keep dyed diesel on site for tractors and other off-road equipment.
Alabama’s harvest season runs through November 15, according to the governor’s office.
“This is a measured, doable and commonsense action to help out Alabama’s agricultural and timber communities,” Ivey said.
The distinction between dyed and regular diesel can mean meaningful fuel-tax savings. Alabama currently levies a 31-cent-per-gallon excise tax on regular diesel fuel, while dyed diesel sales are exempt from the state’s terminal excise tax. Federal diesel fuel is generally subject to another 24.4 cents per gallon in excise taxes, while properly used dyed diesel is exempt from most of that federal tax.
The state’s enforcement pause, however, does not by itself eliminate federal restrictions or penalties.
Ivey also directed Alabama Department of Revenue Commissioner Mary Martin Mitchell to request temporary dyed diesel penalty relief from the Internal Revenue Service. The IRS says knowingly using dyed diesel for a taxable purpose can carry a penalty of the greater of $1,000 or $10 per gallon involved.
ALEA Secretary Hal Taylor said the agency will implement the directive while continuing to focus on highway safety.
“Governor Ivey’s directive provides a practical and timely measure to support Alabama’s farmers and timber operators as they navigate the impact of increased fuel costs,” Taylor said.
In her letter to Taylor, Ivey said many farmers and timber operators already maintain on-site supplies of dyed diesel for legal off-road use and argued that temporarily refocusing enforcement would provide relief during a particularly expensive harvest season.
The change will remain in effect for 120 days.
Sawyer Knowles is a state and political reporter for Yellowhammer News. You may contact him at [email protected].
