Kentucky Revised Statutes Title XI. Revenue and Taxation § 138.502.Prohibition on the sale, delivery, provision, or use of untaxed or dyed diesel fuel; exceptions; civil penalty

(a) Persons operating motor vehicles that have received fuel into the fuel tank outside this state in a jurisdiction that permits 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 and local government vehicles, and buses, unless otherwise prohibited by this chapter.

(a) For first offenses, one thousand dollars ($1,000) or ten dollars ($10) per gallon of untaxed fuel or dyed diesel 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 subsequent offenses, the penalty shall be the amount determined in paragraph (a) of this subsection, multiplied by the number of separate violations by the violator.