Montana Department of Transportation

FUEL TAXES
Overview
Allocation to Cities & Counties
Distributor/Carrier/Retailer Reporting
Dyed Fuel Use
FAQs
IFTA Tax Return E-File Quick Start
Laws/Regulations

HELPFUL INFORMATION
Forms
IFTA website
Manuals

REPORT VIOLATORS
To report suspected violators call
MDT’s 24-hour toll free tip line at:
1-888-FUEL-LAW
or email

To report suspected violators call MDT’s 24-hour toll free tip line at: 1-888-FUEL-LAW or email

MDT Cracks Down on Dyed Fuel Misuse What is Dyed Diesel? Dyed diesel fuel is fuel that has not been taxed and is intended for off-road use only. When you fill your vehicle with undyed fuel at the pump, state and federal taxes are included in the cost. These taxes are used to help fund construction and maintenance of Montana's public roads. Dyed diesel fuel is regular diesel fuel that has red dye added to it. This is done to identify the fuel as non-taxed and to help enforcement officials easily identify it. Dyed diesel is for off-road use only- examples include farm equipment and home heating. If you fill your tank with dyed diesel and drive on Montana's public roads, you're breaking the law. What are the consequences for using dyed diesel on the public roads? Using untaxed fuel (dyed diesel) in a licensed vehicle violates Montana’s law and reduces the money available to build and maintain Montana state highways. The penalties for using dyed fuel on public roads in Montana are: 1st offense up to $1,000.00 - Civil Penalty 2nd offense up to $5,000.00 - Civil Penalty 3rd and subsequent offense Criminal Penalty - minimum fine $535.00 - maximum $1,000.00 or by imprisonment for not less than 30 days or more than 6 months, or both. Montana law requires the use of "dyed diesel decals" on retail pumps containing dyed diesel fuel, and this law is enforced.