Diesel and Bio-Diesel

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Diesel and Bio-Diesel Tax Rates

Clear diesel and bio-diesel are taxed as special fuels at the standard rate.

Dyed Diesel vs. Clear Diesel

Clear diesel is subject to fuel tax, but not sales tax and is intended for the operation of motor vehicles on public roadways.

Dyed diesel is not subject to fuel tax, but is subject to sales and use tax. It is intended for use in:

  • Construction equipment
  • Farm equipment
  • Recreational vehicles used off road
  • Generators
  • Heating units
  • Other equipment and machinery

Dyed diesel is not intended for use in cars, trucks or other vehicles driven on the road. Using dyed diesel to operate motor vehicles on public roadways is subject to federal and state penalties. See §59-13-320.5. Dyed diesel used for off-highway purposes is subject to sales tax rather than fuel tax.

Off-Highway Use

Off highway is a controlled area not generally open to the public. See Tax Commission Rule R865-4D-2.

Reporting Illegal Use of Dyed Diesel

Give the following information to the Utah State Tax Commission and the Internal Revenue Service (IRS):

  • Name and address of the person or business
  • Taxpayer identification number (FEIN or SSN) if known
  • Brief description of the alleged violation
  • Your name, address and daytime telephone number
  • How you became aware of the situation or got the information

Contact the Utah State Tax Commission in writing or by phone at 801-297-4678. Send IRS form 3949A, Information Referral, to the IRS.

Please note . . .

TAP Scheduled Upgrade

Taxpayer Access Point (TAP) will be upgraded Friday, December 11 at 5:00pm through Monday, December 14 at 7:00am. TAP will be unavailable during this time.

Please note . . .

TC-69 Form Usually Requires Additional Schedules

When submitting a TC-69 paper form, you MUST also include the appropriate schedule(s). If you do not include the correct schedule(s), your business registration will be delayed.

Note: To save time and ensure all needed schedules are included, you can apply for a tax account online.

Please note . . .

Sales tax filing is changing

All Utah sales and use tax returns and other sales-related tax returns must be filed electronically, beginning with returns due Nov. 2, 2020. File electronically using Taxpayer Access Point at tap.utah.gov.

This includes:

  • Third quarter, July-Sept 2020 (quarterly filers)
  • September 2020 (monthly filers)
  • Jan – Dec 2020 (annual filers)
  • All related schedules

You can continue to the PDF form below, or go to TAP to register and begin filing electronically now—no need to wait until the deadline!