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Dyed Diesel Fraud

Dyed Diesel Fraud . It’s a Crime!. Diesel Place Website.

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Dyed Diesel Fraud

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  1. Dyed Diesel Fraud It’s a Crime!

  2. Diesel Place Website • I was messing around the other day with some red diesel and was trying to remove or hide the red. I would much rather remove it so as not to raise questions as to why my fuel is black or something.But anyways I tried to hide it with 2 stroke oil and I concluded that it would take way too much to do this. I know that some people use waste oil to hide it and there is no way that I am going to do this because I personally think it's bad.So I just want to know if anybody has tried or heard of any other ways to remove the red.. and preferably not an expensive way as that will completleydefeat the purpose of buying red in the first place. • Share

  3. Reply • I 'heard' that leaving it out in the sun (open) will cause the dye to leave. I have no idea if it is true. Be careful in the rain.

  4. Reply • I once read in the local paper that a gallon of sulfuric acid would settle the dye out of an entire tanker truck of fuel and that there were wholesalers doing it to make the extra bucks when selling it to retailers. Not sure I would want that acid in my fuel system, but it might be an interesting experiment.

  5. $$ Texas, 2013 • Tax is $ 0.20 per gallon • Fourth largest source of revenue • $3.2 billion • Used for state highway fund

  6. Dyed Diesel • Untaxed • Used for off road only • Tax exemption value is $260 million annually (TX)

  7. Evasion Schemes • Misuse • Saving 20 cents a gallon matters to some people. • Many farms have a dyed bulk tank. • Farm pickups often carry a tank to resupply tractors or cultivators.

  8. Dye Removal • Its not easy, but it is possible. • Leaving it open in the sun works • State patrol and IRS can test for dye.

  9. Dye masking • Add oil to make it black • “additive” • “recycling old oil”

  10. Illegal Importation • In international border states, diesel may be illegally brought in.

  11. Nebraska Illegal Importing • Fuel transport picks up fuel in Nebraska to be delivered in a lower tax state. • Delivers it in Nebraska.

  12. Nebraska Carrier Enforcement • 32 full time state patrol do fuel checks • Generally about 25 – 40 per month per man • 2013 9,346 tanks checked, 49 violations • 2012 9,611 tanks checked, 41 violations

  13. Enforcement Discretion • Checks are done at weigh stations or safety checks • Checks may result from reliable eye witnesses • Checks mainly result from violations • Traffic infractions • Regulatory violations (over height, weight, spilling load, missing IFTA or DOT insignia)

  14. Coleman v State ex rel. Montana DOT • Coleman operates a cattle ranch near Charlo, Montana. Coleman was driving his 1999 International Harvester truck between feedlots and armland on U.S. Highway 212. The truck had been modified with the addition of a feedbox, hoist and tailgate attached to it. The truck was not licensed or registered. Joseph Lavadure, a Montana Department of Transportation (MDOT) Officer, stopped Coleman and found the fuel was dyed diesel fuel. • Coleman argued his vehicle is designed for agricultural work and bears physical characteristics that render its primary use off-road and off-highway. He claimed that he is entitled to a special exemption from the prohibition against dyed fuel on the public roadways. MDOT countered that the vehicle is designed to transport persons or property on the public roads and that its physical characteristics do not demonstrate it is intended for primary use in an off-road manner. • Coleman v. State ex rel. Montana Dept. of Transp., 298 P.3d 426, 369 Mont. 350, 2013 MT 80 (Mont. 2013)

  15. Penalties • Administrative: IRS $1000 minimum; Nebraska $250 minimum • Criminal/civil penalties as well

  16. Diesel Place Website • I was messing around the other day with some red diesel and was trying to remove or hide the red. I would much rather remove it so as not to raise questions as to why my fuel is black or something.But anyways I tried to hide it with 2 stroke oil and I concluded that it would take way too much to do this. I know that some people use waste oil to hide it and there is no way that I am going to do this because I personally think it's bad.So I just want to know if anybody has tried or heard of any other ways to remove the red.. and preferably not an expensive way as that will completleydefeat the purpose of buying red in the first place. • Share

  17. Reply • Anything's posible. It prly cost more to clear it than to just pay the tax.

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