Yes on the 'no taxes applied' and yes to the 'red'.
It's diesel for farm equipment (and perhaps other utility engines) only. No street driven vehicles are allowed to run it and the dye shows what you've done. I don't know how long the dye will stay in the system. ("I just bought it and it must have been like that! Honest, officer!" )
I've never heard of "regular" guys getting busted for using off road fuel, but I know it could happen. With the mix of grease and home made bio-diesel out there on the roads now, fuel tax spot inspcetions are a bit more complicated.
In reality, as I understand it, there is no difference in the eyes of the law between off road diesel and grease conversions.
You can't pull up to the co-op and get off road diesel in your truck. Tractors and tanks only.
Actually bought an old Golf diesel that I thought had bad fuel in it, so when I emptied the tank, I found that it was full of red diesel fuel. Come to find out, this guy had been filling it up with the farming stuff.
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