1. (1) Purpose. This section clarifies the tax exemption provided to suppliers required to be licensed by the department when a dye has been added to diesel fuel.

2. (2) General.

   1. (a) All fuel dyed in accordance with the federal internal revenue service temporary regulations, 26 CFR 48.4082-1T, 2T, 3T and 4T, is treated as destined for exempt use and is exempt from the motor vehicle fuel tax.

   2. (b) Dyed diesel fuel shall only be used for exempt purposes.

      Examples: 1) Diesel fuel used as heating oil has an exempt purpose.

      2) Diesel fuel used for nonhighway use has an exempt purpose.

      3) Diesel fuel used in trains has an exempt purpose.

      Note: This section interprets s. 78.01 (2p), Stats.

History

History: Emerg. cr. eff. 4-1-94; cr. Register, November, 1994, No. 467, eff. 12-1-94.