Two farm states with heavy economic dependence on agriculture take opposite stands on the President’s recent executive order expanding the tax-free use of red-dyed diesel.
While Gov. Kevin Stitt in Oklahoma recently issued an order creating a pause on enforcement of all taxes, regulations and fines levied on the use of red dyed diesel in farm vehicles, Kansas Gov. Laura Kelly, a Democrat, called it “another poorly thought out, election year gimmick that will not truly lower diesel prices.”
Stitt, a Republican, stated Oklahoma feeds the world and the state’s farmers and ranchers are facing unprecedented challenges as we head into harvest season.
“As their costs increase, so do our prices at the grocery store. The state should ease burdens where it can in order to provide relief for the industry, and for Americans trying to feed their families.”
Governor Stitt instructed the Oklahoma Tax Commission to seek Dyed Diesel Fuel Penalty Relief from the Internal Revenue Service. He also instructed the Department of Public Safety and the Oklahoma Corporation Commission to suspend any and all enforcement actions regarding the use of dyed diesel fuels in highway vehicles during this time period.
Kansas Gov. Kelly said the President’s executive order could not be legally put into effect in her state, contending the “expansion of red dye diesel would ultimately result in its cost skyrocketing to the same price as regular diesel.”
She said she has stated she has no intention of issuing an executive order to waive the state’s ban on using red-dyed diesel in on-road vehicles.
Gov. Kelly added, “There are also serious concerns from Kansas Highway Patrol that execution of this executive order, if it were legally possible, would result in law enforcement difficulties once red dye diesel returns to its normal usage restrictions. Once again, the Trump administration is attempting to put out a fire it created and causing more harm and long-term consequences in the process.”
One Kansas legislator, Sen. Stephen Owens, supported the President and said so in a recent social media message.
“I have reached out to the Governor Laura Kelly office to ask / encourage her to follow suite and issue a similar executive order waiving the prohibition and allowing red dyed diesel through the end of 2026 in Kansas vehicles. I would encourage you to reach out to Gov. Kelly’s office and encourage her to provide relief for Kansas truckers, farmers and those driving diesel vehicles by contacting her office at: https://www.governor.ks.gov/contact/contact”
Red dyed diesel us used in off-road ag machinery including farm tractors and combines and is dyed red to help law enforcement because it is illegal under state law to use tax-exempt fuel intended for off-road use for taxable on-road travel.
President Trump, in recently announcing his decision said the order will save “millions” for farmers and drive down the cost of all goods.
