Trump defers federal diesel taxes, states warn drivers
President Trump signed an order to defer federal diesel taxes, but states caution drivers may owe taxes later.
Key facts
- According to NPR, President Trump signed an executive order deferring federal diesel taxes until the end of the year.
- According to NPR, the order permits highway vehicles to use red‑dyed diesel, which is exempt from federal highway taxes.
- According to NPR, South Dakota Governor Rhoden warned drivers not to use dyed diesel on highways.
- According to NPR, State Democrats in South Dakota called for a special session to suspend the state’s 28‑cent per gallon diesel tax.
- According to NPR, companies such as Gerald Otte’s trucking firm worry they may be billed for the untaxed diesel later.
According to NPR, President Trump signed an executive order at a Nebraska rally. The order defers federal taxes on diesel until year‑end. According to NPR, it is aimed at helping farmers by lowering fuel costs.
According to NPR, the order permits highway vehicles to use red‑dyed diesel. According to NPR, red‑dyed diesel is exempt from federal highway taxes. According to NPR, it is the same as regular diesel except for its color. According to NPR, it is normally only allowed for off‑road use.
According to NPR, trucking companies like Gerald Otte’s worry about future tax liability. According to NPR, they fear they may be billed for the untaxed diesel later. According to NPR, the order only defers payment, it does not eliminate the tax.
According to NPR, South Dakota Governor Rhoden warned drivers not to use dyed diesel on highways. According to NPR, he said state officials will not check gas tanks for it during the year. According to NPR, State Democrats want a special session to suspend the state’s diesel tax.
According to NPR, the South Dakota Trucking Association sent a flyer advising not to change fuel practices. According to NPR, the order may require legislation to fully remove the tax.
Context
According to NPR, the order was issued to lower diesel costs for farmers. NPR reports it was signed at a campaign rally in Nebraska. NPR notes the federal highway tax on diesel is 24.4 cents per gallon.
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How this was made
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