Ohio will not penalize dyed diesel on roads through Dec. 31
Bloomberg Tax reports the Ohio Department of Taxation said on Oct. 23 that it will not impose state penalties for using dyed diesel on public highways through Dec. 31, 2026.
What happened
Ohio Governor Mike DeWine signed Executive Order 2026-05D on Oct. 21, directing the Tax Commissioner to waive penalties for dyed diesel on public highways. The waiver runs through Dec. 31, 2026, and the order suspends enforcement of Ohio's dyed diesel rules, including Ohio Revised Code 5735.124, for the same period. Bloomberg Tax reports the Ohio Department of Taxation said on Oct. 23 that it will not impose state penalties for the sale, distribution or use of dyed diesel on public highways or waterways during the federal relief period ending Dec. 31.
Why it matters
Dyed diesel is fuel meant for off-road use, and Ohio law normally penalizes running it on public roads. The Ohio Agribusiness Association notes the order waives penalties without repealing the law, and Ohio's separate fuel tax holiday through Jan. 2, 2027 does not extend the dyed diesel relief into January. Rules differ by state: Michigan's order covers only vehicles with farm or wood harvester plates, and LexCircuit reports Indiana's order covers only farmers and timber harvesters. The IRS is considering relief for dye left in tanks and has not announced a grace period. The relief waives penalties. It does not forgive fuel taxes.
What to consider
If drivers fuel with dyed diesel in Ohio, plan for the Dec. 31 end date, check the rules in each state before crossing a state line, and keep the fuel records you need for other taxes, as the IRS advises. Ohio Revised Code 5735.124 · IRS dyed diesel recordkeeping relief · Michigan's dyed diesel limits
Sources
Reporting and records credited to the sources above, Oct. 23, 2026. We link to the original and add what it means for carriers.
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