Governor Reynolds has issued a proclamation that follows President Trump’s executive order to suspend penalties for the use of tax-exempt diesel on public roads. The fuel, which includes a red dye, is generally restricted to off-road use. U-S Ag Secretary Brooke Rollins says Reynolds is one of 13 governors to make the move.
Iowa’s tax on diesel fuel is 34-and-a-half cents — so Iowa farmers and truckers hauling grain or livestock to market could save nearly 57 cents per gallon on purchses this fall. Groups that represent the trucking industry, gas stations and truck stops warn the executive actions do not waive the tax, however, because congress and state legislatures have the authority to eliminate taxes. The governor has suspended enforcement of penalties for the use of red dye diesel on public roads through February 2nd if the vehicle is hauling soybeans, corn, hay, straw, silage, stover, fertilizer, manure, or distillers grains.
