Revenue to Conduct Diesel Fuel Compliance Checks in White County on Nov. 17

Wednesday, November 10, 2010 | 09:02 am
Sparta, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue will be conducting roadside diesel fuel compliance checks in White County during daylight hours on Wednesday, Nov. 17. US Internal Revenue Service fuel compliance officers also often participate in these checks and may be present at this location as well as Department of Safety representatives checking registrations and IFTA stickers.
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 Charles Trost. “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).
The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2009-2010 fiscal year, the department collected $10.1 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2009-2010 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to