FL – Guidance provided on sales and reporting of dyed diesel fuel during hurricane helene penalty relief period

Consistent with the Hurricane Helene penalty relief announced by the Internal Revenue Service (IRS), the Florida Department of Revenue is also waiving the penalty for state fuel tax purposes through October 15, 2024. This relief is available to any business or individual who sells or uses dyed diesel fuel for on-highway use. During the penalty relief period, dyed diesel fuel sold or used for on-highway use should be reported and taxed in the same manner as undyed diesel fuel. In response to Hurricane Helene, the IRS announced that it will not impose a penalty when dyed diesel fuel is sold for use or used on the highway. This penalty relief period began September 26, 2024, and will continue through October 15, 2024.

Collection and Reporting Instructions During Penalty Relief Period

During the penalty relief period, terminal suppliers should continue to sell dyed diesel fuel to wholesalers without collecting fuel taxes. Terminal suppliers that sell dyed diesel fuel to retail dealers, resellers, or to the ultimate consumer for use in highway vehicles are responsible for collecting and remitting to the Department fuel taxes of 37.4 cents per gallon and pollutant taxes of 2.071 cents per gallon.

During the penalty relief period, wholesalers/importers should collect and remit the tax on dyed diesel fuel sold to customers who consume such fuel in highway vehicles. Wholesalers/importers that sell dyed diesel fuel to retail dealers or resellers for use in highway vehicles are responsible for collecting and remitting to the Department fuel taxes of 37.4 cents per gallon and pollutant taxes of 2.071 cents per gallon.

To report and remit fuel taxes on dyed diesel sold for use in highway vehicles during the penalty relief period, terminal suppliers and wholesalers/importers must provide information on both the receipt and the disbursement of the fuel. To document the receipt, terminal suppliers and wholesalers/importers should list the number of gallons of dyed diesel fuel received for highway use on the Schedule of Receipts (schedule 2B and product code 167). Terminal suppliers must carry the total from the Schedule of Receipts to Page 5, Section I, Line 5 of the Terminal Supplier Fuel Tax Return (Form DR-309631). Wholesalers/importers must carry the total from the Schedule of Receipts to page 5, section I, line 4 of the Wholesaler/Importer Fuel Tax Return (Form DR-309632). Tax Information Publication, No. 24B05-03, Florida Department of Revenue, October 4, 2024