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# Virginia Prepares Oct. 23 Rules for On-Road Dyed Diesel
- URL: https://www.theamericanquorum.com/state-news-virginia-2026-10-21-a/
- Published: 2026-10-22T01:25:59.000Z
- Updated: 2026-10-22T01:25:59.000Z
- Description: Virginia DMV is preparing an Oct. 23 process allowing eligible highway use of dyed diesel after state tax payment, offering temporary flexibility for farmers, loggers and haulers without creating a blanket tax exemption.
- Author: News Desk
- Tags: Policy, Virginia

Virginia’s Department of Motor Vehicles is preparing a temporary process that will let eligible users put dyed diesel into highway vehicles after paying the state tax, with detailed procedures due by Oct. 23\. The change is aimed at farmers, loggers and haulers facing elevated fuel costs, but it does not create a blanket tax-free exemption for road use.

Gov. Abigail Spanberger issued [Executive Directive 5](https://www.governor.virginia.gov/newsroom/news-releases/2026/october-releases/name-1127275-en.html?ref=theamericanquorum.com) on Oct. 16, ordering DMV to streamline collection of the “backup tax” owed when dyed fuel is used on public roads and to waive certain civil penalties for people who first pay that tax. The directive remains effective through Dec. 31 unless it is extended or rescinded.

Dyed diesel is normally sold for off-road uses such as farm, forestry and construction equipment. Its color identifies fuel on which road-use taxes generally have not been collected. Virginia’s temporary policy expands access to that supply during a period of high diesel prices, but users still must comply with state payment and recordkeeping requirements.

DMV’s [implementation notice](https://www.dmv.virginia.gov/dyed-diesel?ref=theamericanquorum.com) says the agency will publish the new process on or before Friday. The procedure will explain how to remit the state-owed diesel tax under [Virginia Code § 58.1-2225](https://law.lis.virginia.gov/vacode/title58.1/chapter22/section58.1-2225/?ref=theamericanquorum.com) and how the agency will use its authority under [§ 58.1-2265](https://law.lis.virginia.gov/vacode/title58.1/chapter22/section58.1-2265/?ref=theamericanquorum.com) to waive civil penalties for qualifying users who pay first.

That timing matters because the governor’s directive gave DMV five business days to establish the tax-remittance path. Until the agency posts its instructions, affected businesses do not yet have the complete operational details for documenting purchases, calculating payment or demonstrating eligibility.

The governor’s office urged users to retain detailed fuel-purchase records and documentation supporting their eligibility. It also advised businesses to consult federal guidance and tax professionals because Virginia’s action does not automatically resolve federal tax liability. The temporary state waiver therefore reduces an enforcement obstacle without erasing every tax or compliance obligation attached to on-road fuel.

Industry groups welcomed the short-term flexibility. Virginia Farm Bureau President Scott Sink said in the governor’s announcement that farmers feel every cent of increased fuel costs while hauling crops or livestock. Virginia Loggers Association President Frank Myers described the directive as meaningful temporary help while the sector confronts broader economic pressure.

Independent reporting by [WDBJ7](https://www.wdbj7.com/2026/10/16/governor-spanberger-authorizes-temporary-on-road-use-dyed-diesel/?ref=theamericanquorum.com) confirmed the Dec. 31 expiration and DMV’s five-business-day implementation deadline. The Secretary of Transportation, working with the Secretary of Agriculture and Forestry, is directed to monitor the policy and recommend whether it should continue, change or end.

For Virginia businesses, the practical next step is DMV’s promised guidance. The benefit will depend on whether the new payment process is simple enough to use during the remaining harvest and year-end hauling period—and whether savings from access to dyed fuel exceed the administrative and tax requirements that remain.