Assemblyman Gray Clarified Dyed Diesel Tax Rules
Federal relief on red dyed diesel does not extend to New York state roadways, according to Assemblyman Scott Gray.
Updated on Oct. 7, 2026 in Emergency Response
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Assemblyman Scott Gray warned that a recent federal executive order granting relief on red dyed diesel usage does not apply to New York state law. Residents continue to face state-level penalties and taxation despite the federal shift.
Why it matters
Confusion has emerged among New York residents regarding how federal fuel mandates interact with stricter state regulations. Local officials are now calling for state action to align with federal measures to ease potential burdens.
The federal order defers the 24.4-cent excise tax through Dec. 31, but New York continues to collect state fuel taxes on the product. Use of dyed diesel on public roads remains prohibited under current state law.
The players
Scott Gray
Scott Gray is a New York State Assemblyman representing the Watertown district.
The details
While the federal government issued an order to waive penalties and defer taxes for dyed diesel users, New York law maintains its own stringent enforcement and taxation. Assemblyman Scott Gray has urged state leaders to intervene and match the federal exemption to resolve the ongoing discrepancy.
Timeline
New York previously provided fuel waivers following Hurricane Sandy in 2012.
A federal executive order regarding fuel tax relief was issued on Oct. 5.
The federal excise tax deferral remains in effect through Dec. 31.
Seasonal Patterns
This situation follows the pattern set by the 2012 emergency fuel waivers granted after Hurricane Sandy where state leadership was required to authorize relief. Officials are now weighing whether current circumstances warrant a similar legislative response to align with federal standards.
Drivers must continue to pay state fuel taxes on dyed diesel as the federal waiver does not protect against state-level enforcement. Residents should monitor local legislative sessions for any potential emergency fuel declarations that could change state compliance requirements.
The takeaway
Understanding the distinction between federal and state tax enforcement is critical for avoiding penalties while transporting fuel. Residents should remain cautious of federal guidance that does not explicitly override local road and tax laws.
Further reading
For more information on state policy updates, visit the Emergency Response section.
Live Poll
Should your state government automatically match federal tax relief measures to avoid confusion?
