Policy Position on Dyed Fuel

Fuel taxes are used to fund highway infrastructure construction and preservation projects to facilitate safe and efficient highway mobility. The illegal use of non-taxed fuel (usually referred to as dyed diesel) results in lost tax revenue estimated to exceed $273 million annually. AAMVA supports the investigation and prosecution of dyed diesel violations. AAMVA encourages collaborative deterrence and detection of dyed fuel fraud activities by law enforcement, departments of revenue, departments of motor vehicles, and federal partners such as the Internal Revenue Service. Toward that end, AAMVA further encourages these partners to utilize AAMVA’s Dyed Diesel Fuel Fraud Detection and Enforcement Best Practices.

[Adopted 2022]