DEPARTMENT OF REVENUE TO CONDUCT DIESEL FUEL
COMPLIANCE CHECKS IN MARSHALL COUNTY JUNE 29

NASHVILLE, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue will be conducting roadside diesel fuel compliance checks in Marshall County during daylight hours Wednesday, June 29. Internal Revenue Service fuel compliance officers often participate in these checks and may be present at this location.

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 approximately 43 cents per gallon cheaper than clear diesel fuel because it is sold without the state and federal tax," said Revenue Commissioner Loren L. Chumley. "It is important that our department ensures the 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 collects approximately 92 percent of total state tax revenue. During the 2003-2004 fiscal year, the department collected $9.1 billion in state taxes and fees. In addition to collecting state taxes, $1.6 billion of local sales tax was collected by the department for local governments during the 2003-2004 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 www.Tennessee.gov/revenue.

Federal fuel tax revenue funds the Highway Trust Fund. Thus, taxpayers benefit from increased fuel tax compliance because more funds are available for highway and bridge construction and for maintenance nationwide. For more information about federal excise tax compliance efforts, visit www.irs.gov.

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