(KIWA Staff Photo)Des Moines, Iowa (RI) — Gov. Kim Reynolds has signed a proclamation temporarily suspending state penalties for using tax-exempt “red-dye” diesel in vehicles that travel on Iowa roads.
Diesel taxes are based on where the fuel is used. Red dye is added to diesel fuel that is exempt from road-use taxes because it is intended for use on farms and at construction or industrial sites.
The governor’s action, which remains in effect through Feb. 2nd, follows an executive order signed by President Trump on Monday that waived the off-road requirement for tax-free diesel.
Trump made the announcement during a campaign rally in Nebraska.
Republican gubernatorial candidate Zach Lahn says he mentioned the idea during a meeting with Vice President J.D. Vance and later worked with the White House to help facilitate the fuel tax relief.
In September, both U.S. Senate candidates, Democrat Josh Turek and Republican Ashley Hinson, called for temporary suspension of the federal diesel fuel tax.
Combined state and federal taxes on diesel fuel total nearly 57 cents per gallon.
According to AAA, diesel fuel is currently averaging $6.05 per gallon in Iowa. That’s down from the all-time state average high of $6.31 per gallon recorded on Sept. 21st.
