PIERRE, (KCCR) — The South Dakota Department of Revenue is offering some clarification to the recent announcement of dyed diesel fuel use in the state. Governor Larry Rhoden announced Tuesday a temporary adjustment to enforcement priorities regarding the use of dyed diesel as a way to provide relief to diesel fuel users across the state. The change directs the Highway Patrol to not stop and check for violations due to varying directives from other states. Only agricultural producers with valid ag exemption certificates can use red-dyed diesel for on-road use. Until further clarification from federal officials, non-ag users may still owe federal taxes in January. Dyed diesel remains subject to state sales tax and any municipal taxes, if the purchase qualifies for the state’s agricultural exemption. In some instances, non-ag use of dyed diesel could result in paying more for the fuel. Those choosing to use dyed fuel for highway use are encouraged to maintain accurate fuel-use records and monitor future state guidance on it’s use.
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