|
On October 5, President Trump signed an Executive Order relaxing laws governing the use of dyed diesel fuel from October 5, 2026, through December 31, 2026. The Executive Order specifically references farmers and truckers but does not address further restrictions. The Executive Order specifically address dyed diesel fuel used for an on-road purpose.
Subsequent to the Executive Order issued by President Trump, Iowa Governor Kim Reynolds issued a similar proclamation on behalf of the state of Iowa. In the proclamation issued and signed by Governor Reynolds, she temporarily suspends the regulatory provisions of Iowa Code sections 452A.74A and 452A.74A(1), to the extent that these provisions restrict the use of dyed diesel for highway transportation in motor vehicles hauling soybeans, corn, hay, straw, silage, stover, fertilizer (dry, liquid, and gas), manure (dry and liquid), and distillers grains and also temporarily suspend the regulatory provisions under Iowa Code sections 423.2(1), 423.5(1), and 452A.3(3) from the sale and use of such fuel for the same use. In short, farmers and truckers using dyed fuel in the furtherance of an agricultural production related activity referenced above may do so under the protections of the state proclamation.
It is worth noting that the sale of dyed diesel fuel in Iowa is subject to state sales tax unless a specific exemption exists for the use of the fuel. This is because dyed fuel does not include excise tax. Although the proclamation issued by Governor Reynolds extends beyond the Executive Order issued by President Trump and addresses waiving state sales tax, FUELIowa strongly encourages members selling dyed fuel to farmers and truckers for the uses outlined above to obtain a signed copy of Iowa’s Sales Tax Exemption Certificate from your customers seeking to use the relief in the Executive Order issued by President Trump and the subsequent proclamation from Governor Reynolds.
FUELIowa will continue to monitor the situation and provide updates as more information becomes available. Members with questions are encouraged to contact John Maynes (john@fueliowa.com; 515-421.4043).
|