The South Dakota Farmers Union wants a special legislative session to cut state fuel taxes. The organization is asking lawmakers to temporarily lower the state’s 28-cent-per-gallon gas and diesel tax to just one cent. The group also wants protection from state penalties for using red-dyed diesel on highways. The request follows new state guidance limiting tax-exempt dyed diesel use to agricultural producers with valid exemption certificates. SDFU President Doug Somke says allowing red dyed diesel in highway vehicles does not necessarily eliminate the state tax liability. “Now, dyed diesel doesn’t get taxed, but at the same time if you’re using on the highway, there’s nothing in the law in South Dakota statute that says you still won’t be taxed.” Governor Larry Rhoden has ordered the Highway Patrol not to check vehicles for dyed diesel violations. However, state law prevents the governor from suspending fuel taxes on his own. The Governor’s Office says all options remain on the table.
