Check all your fuses. If your lucky you might find one the is blown and could be related If not fuse related then you need to remove the platic steering column cover. Under there at the end of the shift lever you will find two small wires that are for the tow haul button. These wires get brittle and break over time from shift level movement it seems. You will have to repair the broken wire and you should be good to go!
SOURCE: chevy 2000 silverado tow haul wont work
I had that problem yesterday and researched the web. Found out underneath the steering column, take the bottom plastic cover off, there is a orange wire for the tow/haul. It's actually 2 white wires with orange covering. It was broke.
Splice the two wires back together and it works great...
SOURCE: tow/haul does not work on 2000 chevy truck. whereis fuse?
I had a problem with my tow/haul button not working. I came to find out that the gear shift had cut the wire running to the button in two. You may want to check that.
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