State of Delaware Exempt Entity Certification

Exempt Entities

30 Del C., c.51, §5111 and §5133,  allows certain entities to purchase taxable Motor Fuels and Special Fuels, for use in vehicles operated on Delaware roadways, free of excise tax. Specifically, this exemption is extended to (1) the United States or any governmental agencies thereof; (2) the State and every political subdivision thereof; (3) volunteer fire companies, for use in any of their official vehicles; and (4) veterans' or civic organizations in their ambulances when such ambulances are provided on a voluntary basis.

In order to apply for exemption status, an entity must submit an exemption certificate application (and bulk tank information forms, if bulk deliveries are intended) to the Motor Fuel Tax Administration. If the entity meets the criteria for exemption status, the status is granted, and an exemption number is issued (in the form of a certificate).

Bulk deliveries: In order to receive bulk deliveries, an exempt entity must purchase bulk fuels from a licensed Motor Fuel Distributor (for gasoline) and/or a Special Fuel Supplier (for low sulfur clear diesel, or any other Special Fuel used to propel a licensed motor vehicle).

Credit card purchases at retail stations: In order to make exempt purchases of Motor Fuel or Special Fuel at retail stations, an exempt entity must have a fuel purchase arrangement with a third party credit card company. Typically, the exempt entity utilizes the card to purchase fuel at the pump, and later receives a billing that does not include state excise taxes. The credit card company, retail station, Motor Fuel Distributor and/or Special Fuel Supplier, establish the necessary tax reimbursement procedures. The Motor Fuel Distributor and/or Special Fuel Supplier is then able to recover the tax (which was originally remitted by the Distributor/Supplier to Delaware at the time the fuel was delivered to the retail station) by properly documenting exempt entity fuel purchases on their monthly excise tax returns.

Exempt Entity Forms, Information and Instructions

• Notice to Exempt Entity Fuel Suppliers
• Exemption Certificate Application
• Exemption Certificate Application Instructions
• Exempt Entity Gasoline Bulk Fuel Tank Information Form
• Exempt Entity Special Fuel Bulk Fuel Tank Information Form

Please contact the Motor Fuel Tax Administration at (302) 744-2715 for further information.

For a listing of exempt entities registered with the State of Delaware, please click on the Motor Fuel Exempt link on the A-Z Listing of Licensed Accounts page.