Dyed diesel (also known as marked fuel, farm fuel, or "red-dyed" diesel) is fuel with red dye added to indicate there are no federal or state fuel taxes paid. It's commonly used for non-highway farming equipment, construction equipment, generators, and marine vessels.
This section will help you with your dyed diesel returns.
| Set up a new dyed diesel account |
| File a dyed diesel return |
| Amend (change) dyed diesel returns |
| Pay a dyed diesel violation or notice of assessment |
This guide is for new customers who have registered their License Express account but haven’t added dyed diesel to their License Express account. You can do this for yourself or as a service agent conducting business on someone else’s behalf.
You must set up a License Express account before you can set up a Prorate Fuel Tax (PRFT) account for dyed diesel.
Only nonprofit businesses and government entities can use dyed diesel. You can learn more about the laws that apply to dyed diesel on the Washington State Legislature’s website.
Before you get started, gather all of the following:
Nonprofit organizations also must:
If you’re setting up an account for yourself and appointing a service agent, you’ll also need:
If you’re registering on behalf of someone else, you’ll need to upload an electronic copy of a signed and notarized power of attorney assignment form. Remember, don’t sign the form until you meet with a notary public.
Even though the form doesn’t reference dyed diesel, you can use the form to set up a dyed diesel account for someone else.
If you are a service agent, you can jump to instructions for setting up a dyed diesel account as a service agent.
1. In the dropdown menu under “Select account type to start registration,” select “Dyed Diesel.” Choose the “Next” button.
2. Read the “New Account Registration” instructions, then choose the “Next” button.
3. If you’re a nonprofit, you’ll need to indicate your organization’s type. If you’re a government agency, skip to step 4:
4. License Express will pre-fill the address you entered when you set up your account.
Indicate whether your physical, mailing, and location of records addresses are all the same. In most cases, this will match the information you entered when you set up your License Express account:
5. Enter at least 1 contact for your nonprofit business or government agency:
6. Choose whether you want to appoint a service agent:
7. Enter your service agent’s information:
8. Choose whether you want to set up another Prorate and Fuel Tax (PRFT) account, such as an IFTA or dyed diesel account:
9. Verify your information and then choose the “Submit” button. On the confirmation screen, you can either choose “Continue” to return to your dashboard or “Print” to print your confirmation.
1. If the taxpayer is a nonprofit, you’ll need to indicate their organization’s type. If the taxpayer is a government agency, skip to step 4:
2. License Express will pre-fill the address you entered when you set up the taxpayer’s account.
Indicate whether the taxpayer’s physical, mailing, and location of records addresses are all the same. In most cases, this will match the information you entered while you set up the taxpayer’s License Express account:
3. License Express will pre-fill the contact information you entered while setting up the taxpayer’s account:
4. License Express will pre-fill your service agent information. Verify that it’s correct.
5. Choose the “Choose or Drop File Here” button and select the signed and notarized power of attorney form from the taxpayer which allows you to conduct business on their behalf. Choose the “Open” button and then choose the “Next” button.
6. Choose whether you want to set up another Prorate and Fuel Tax (PRFT) account, such as an IFTA or dyed diesel account:
7. Verify the taxpayer’s information and then choose the “Submit” button. On the confirmation screen, you can either choose “Continue” to return to your dashboard or “Print” to print your confirmation.
We’ll verify the information you provided. We may contact you with questions at any time while we work to verify your information. Watch your email inbox or your mailbox, depending on the method of communication you chose.
If we don’t approve your account, we’ll tell you why. You can try again once you have the correct information or documents.
This guide is for existing customers who have added a dyed diesel account to their License Express account and want to file a dyed diesel return. These customers may include:
To file a dyed diesel return in License Express, you’ll need:
To file your return on time, submit it online or by mail or fax by 5:30 p.m. Pacific Standard Time (PST) on the due date for the current tax return quarter.
The table below shows these due dates. For example, if it’s August, your return is due at 5:30 p.m. on October 25.
| Tax return quarter | File by 5:30 p.m. on this due date |
|---|---|
| First quarter: January, February, March | April 25 |
| Second quarter: April, May, June | July 25 |
| Third quarter: July, August, September | October 25 |
| Fourth quarter: October, November, December | January 25 |
If you submit your return after 5:30 p.m., it may not post to your account until the following day.
If one of these dates is a Sunday or holiday, your return will be due on the next business day.
If you owe taxes after filing your dyed diesel return, you can learn how to pay online through this guide, or you may mail a check to:
Department of Licensing
PO Box 9048
Olympia, WA 98507-9048
Like the dyed diesel return, taxes are due by 5:30 p.m. Pacific Standard Time (PST) on the due date for the current tax return quarter. The due dates are also the same as those for your tax returns. For details, see the table with filing quarters and due dates.
If you pay after 5:30 p.m., it may not post to your account until the following day.
There is a penalty fee for late payments. The amount of this fee depends on when you file your return.
The table below shows the late payment fees. For example, if it’s September and you file a return for $100 in taxes on:
| If you don't pay by | You'll owe |
|---|---|
| Due date | 10% penalty |
| First day of the next month | 10% penalty and 1% interest per month |
After you finish filing online, you don’t need to mail your return. In fact, doing so may make it take longer to process your return.
Follow the steps below to file a dyed diesel return for your government agency or nonprofit organization.
At any time, you may choose the “Save Draft” button to save your progress and continue later.
1. Log onto your License Express account. You may need to complete multi-factor authentication (MFA).
2. On the “Summary” page, find the “Account” heading. Then choose “View Returns.”
3. Under the “Returns” heading, choose “File Now.”
4. On the “File Your Dyed Diesel Return” screen, you can review what you’ll need. After you have submitted your return and we have processed it, you’ll see an “Amend” button on the top right of this screen. You can choose this button to make changes.
5. Choose the “Next” button.
6. Under “Operations,” indicate whether your organization had operations during the filing period:
7. At this stage, you can choose to cancel your dyed diesel license. This means the account will no longer be valid after you file your return. All cancellations go into effect on the last day of the month:
8. Your next step depends on whether your organization had operations during the filing period:
9. Review the taxes you owe or the refund we owe you based on the information you have provided. If you didn’t have operations during the filing period, all the numbers will be 0.
10. Choose the “Submit” button.
11. If you didn’t have operations during the filing period, you’re now finished with this transaction. You can exit this guide and go back to your License Express dashboard.
12. We’ll need the following information for each vehicle and/or piece of equipment you want to report on your return:
Under “Would you like to import your WA PTO from an excel file?,” indicate whether you want to import information or have License Express calculate it:
13. Under the “Inventory” heading enter the following:
14. Under the “Schedule A - Dyed Diesel Fuel Received” heading, enter the following:
15. Under the “Schedule B - Tax-Exempt Gallons Used” heading, enter the following:
16. Indicate whether your organization is claiming power take-off (PTO) credit. If you're not claiming PTO credit, choose the “Next” button and skip to step 18.
17. If you’re claiming PTO credit, enter the following information for each qualifying vehicle:
Note: If you uploaded a PTO schedule file earlier in this process, License Express will auto-fill this information.
18. License Express will show numbers you entered and the ones it automatically calculated.
Optional: Check the box next to “Sales tax credit/due (see instructions)” if you want to enter your own sales tax credit. You'll need to upload supplemental sales tax information.
19. Choose the “Next” button.
20. Under “Attachments,” indicate whether you want to submit files with your return:
21. Review the information about your return. The "Total Due” is total tax you owe. If you qualify for a tax refund, it will appear under “Refund.”
22. Choose the “Next” button.
23. If you qualify for a tax refund, go to step 24. If you owe taxes, skip to step 25.
24. If we owe you a refund, you can decide whether you want us to mail you a check or deposit the refund into your bank account.
25. Indicate how you want to pay your taxes:
26. Your next step will vary depending on which payment option you chose:
27. Under the “Pay with Bank Account” heading, enter the following information:
28. Under the “Pay with Credit Card” heading, enter the amount you want to pay. Choose the “Submit” button.
To complete your credit card payment, you can read about how to make a payment.
29. On the “Confirmation” screen, you'll see a confirmation number. Keep this number in case you need to contact us for help.
When we finish processing your return, we’ll post the return to your account.
30. You can either choose the “Continue” button to go back to your dashboard or the “Print” button to print your confirmation page.
We’ll verify the information you provided. We may contact you with questions at any time while we work to verify your information. Watch your email inbox or your mailbox, depending on the method of communication you chose.
If we need changes, we’ll tell you why. You can try again once you have the correct information or documents.
We may review and correct your return. This includes making changes to the “Total Due” amount. If we make any changes, we'll notify you by phone, email, or mail. You can view changes to your tax return in License Express.
If your return is overdue and you pay before we process the return, check License Express after we process it to make sure your payment went through.
This guide is for existing customers who have already submitted a dyed diesel return and want to amend (change) it. These customers may include:
You can amend (change) a return that was due within the last 3 years. For example, if you were supposed to file a return in 2025, you can amend (change) that return from 2025 to 2027.
To amend (change) a dyed diesel return in License Express, you’ll need the following information from the filing period of that return:
To file your return on time, submit it online or by mail or fax by 5:30 p.m. Pacific Standard Time (PST) on the due date for the current tax return quarter. The table below shows these due dates.
These due dates also apply to amendments (changes) you make to a return you have already filed. For example, if it’s August, you need to amend (change) your return by 5:30 p.m. on October 25 to avoid late fees and penalties.
| Tax return quarter | File by 5:30 p.m. on this due date |
|---|---|
| First quarter: January, February, March | April 25 |
| Second quarter: April, May, June | July 25 |
| Third quarter: July, August, September | October 25 |
| Fourth quarter: October, November, December | January 25 |
If you submit your return after 5:30 p.m., it may not post to your account until the following day.
If one of these dates is a Sunday or holiday, your return will be due on the next business day.
If you owe taxes after filing your dyed diesel return, you can learn how to pay online through this guide, or you may mail a check to:
Department of Licensing
PO Box 9048
Olympia, WA 98507-9048
Like the dyed diesel return, taxes are due by 5:30 p.m. Pacific Standard Time (PST) on the due date for the current tax return quarter. The due dates are also the same as those for your tax returns. For details, see the table with filing quarters and due dates.
If you pay after 5:30 p.m., it may not post to your account until the following day.
There is a penalty fee for late payments. The amount of this fee depends on when you file your return.
The table below shows the late payment fees. For example, if it’s September and you file a return for $100 in taxes on:
| If you don't pay by | You'll owe |
|---|---|
| Due date | 10% penalty |
| First day of the next month | 10% penalty and 1% interest per month |
After you finish filing online, you don’t need to mail your return. In fact, doing so may make it take longer to process your return.
Follow the steps below to amend (change) a dyed diesel return for your government agency or nonprofit organization.
At any time, you may choose the “Save Draft” button to save your progress and continue later:
1. Log onto your License Express account. You may need to complete multi-factor authentication (MFA).
2. On the "Summary” page, find the “Account” heading. Then choose “View Returns.”
3. Under the “Returns” heading, choose “View or Amend Return.”
4. Choose “Amend”:
5. Above “Total Due,” you can see the taxes you owe. Choose the “Next” button.
6. You’ll now see many of the same screens you reviewed when filing your dyed diesel return. You’ll need to go through the following screens, even if you don’t need to make changes to all of them:
If a screen doesn't need updates, choose the “Next” button to continue.
If a screen needs updates, enter the correct information and then choose the “Next” button.
7. Review the information about your return. Then choose the “Submit” button.
8. On the “Confirmation” screen, you'll see a confirmation number. Keep this number for your records. You’ll need it to access this return.
When we finish processing your return, we’ll post the return to your account.
9. You can either choose the “Continue” button to go back to your dashboard or the “Print” button to print your confirmation page.
10. In most cases, License Express will update your return as soon as you finish amending (changing) it.
However, we sometimes need to review and approve amendments (changes). If so, the page for your return will show a banner that says an amendment (change) is pending. 11. If you owe taxes after amending (changing) your return, you can read about how to make a payment.
If we owe you a refund, you’ll be able to choose whether you want to receive it by mail or electronically.
We’ll verify the information you provided. We may contact you with questions at any time while we work to verify your information. Watch your email inbox or your mailbox, depending on the method of communication you chose.
If we need changes, we’ll tell you why. You can try again once you have the correct information or documents.
We may review and correct your return. This includes making changes to the “Total Due” amount. If we make any changes, we'll notify you by phone, email, or mail. You can view changes to your tax return in License Express.
If your return is overdue and you pay before we process the return, check License Express after we process it to make sure your payment went through.
This guide is for customers who have received a notice of assessment (NOA) for one of the following:
If you’re a service agent acting on behalf of someone who has received an NOA letter, you can follow the same instructions as the taxpayer.
To pay a dyed diesel violation or notice of assessment in License Express, you’ll need:
If you don't have your NOA letter, email us at DOL-PRFTCompliance@dol.wa.gov to get help finding your Letter ID.
Follow the steps below to pay a dyed diesel violation or notice of assessment:
1. Go to the Washington State Department of Licensing website.
2. Under the “Online Services” heading, choose the “Get it done online” button.
4. Choose the “Bill Item” option.
5. Choose the “Next” button.
6. Enter the Letter ID. Make sure to type the letter “L” and the numbers that follow with no spaces in between.
7. Choose the “Next” button.
8. Check the fees you owe for the dyed diesel violation or notice of assessment in the “Available Balance” column.
9. You may pay the full amount or part of the fees:
10. Under the “Payment Details” heading, License Express will auto-fill the amount you entered. Choose the “Next” button.
11. Review the amount you’ll pay, then choose the “Next” button.
12. Indicate how you want to pay:
13. Under the “Pay with Bank Account” heading, you must enter the following information:
14. Under the “Pay with Credit Card” heading, confirm the amount you want to pay. Choose the “Submit” button.
To complete your credit card payment, you can read about how to make a payment.
We’ll verify the information you provided. We may contact you with questions at any time while we work to verify your information. Watch your email inbox or your mailbox, depending on the method of communication you chose.
If we can’t process your payment, we’ll tell you why. You can try again once you have the correct information or documents.