KRS 138.502 — Prohibition on the sale, delivery, provision, or use of untaxed or dyed diesel fuel -- Exceptions -- Civil penalty

(1) A person shall not sell or deliver untaxed diesel fuel or dyed diesel fuel when the
person knows or has reason to know that the fue l will be used in a motor vehicle on
any public highway.
(2) A person shall not introduce untaxed diesel fuel or dyed diesel fuel into the supply
tank of any motor vehicle licensed for highway use.
(3) A person shall not use untaxed diesel fuel or dyed die sel fuel in any motor vehicle
actually used on a public highway.
(4) The prohibitions contained in this section shall not apply to:
(a) Persons operating motor vehicles that have received fuel into the fuel tank
outside this state in a jurisdiction that pe rmits introduction of untaxed diesel
fuel or dyed diesel fuel into the fuel supply tank of highway vehicles; and
(b) Uses of untaxed fuel or dyed diesel fuel on the highway which are lawful
under the Internal Revenue Code and regulations, including state a nd local
government vehicles, and buses, unless otherwise prohibited by this chapter.
(5) The department may assess a civil penalty as follows:
(a) For first offenses, one thousand dollars ($1,000) or ten dollars ($10) per gallon
of untaxed fuel or dyed di esel fuel involved, whichever is greater, against any
person who violates this section. The capacity of the fuel tank shall be
assumed to be the amount of fuel involved, unless a lesser amount can be
adequately verified by the violator; and
(b) For subsequ ent offenses, the penalty shall be the amount determined in
paragraph (a) of this subsection, multiplied by the number of separate
violations by the violator.