Diesel Fuel Tax - Taxability of Undyed Diesel Used in Clearing Delivery Lines. UNDYED DIESEL USED TO CLEAR DYED DIESEL FROM DELIVERY LINES IS SUBJECT TO THE MOTOR FUEL TAX.

Advice has been requested as to whether those gallons of undyed diesel used to clear dyed diesel from delivery lines are subject to the Nebraska diesel fuel tax.

All gallons of undyed diesel used in clearing or flushing delivery lines are deemed to be sold or used subject to the Nebraska diesel fuel tax.

These gallons must be reported on line 16 of the Nebraska Diesel Fuel Tax Return, Form 91. They may not be included in the "Gain or loss due to temperature variation" line (line 7) which is available exclusively for gains or losses due to variations in temperature.

APPROVED:
M. Berri Balka
State Tax Commissioner