Motor Fuel Distributor

A Motor Fuel Distributor, as defined by 30 Del C, c. 51 §5101(1), is "any person, association of persons, firm or corporation, wherever resident or located, who imports or causes to be imported into the State gasoline…for use, distribution, storage or sale after the gasoline reaches the State or who, being in the business of selling and or distributing gasoline in bulk quantities, desires to purchase gasoline tax free from another distributor for resale within this State or for export from this State; and also any person, association of persons, firm or corporation who produces, refines, manufactures or compounds, or causes to be produced, refined, manufactured or compounded gasoline…within the State."

Any business entities intending to operate as a Motor Fuel Distributor must obtain a license from the Motor Fuel Tax Administration. In addition to the non-refundable $10.00 application fee, a surety bond must be obtained and submitted with the application, in accordance with guidelines specified by 30 Del C, c. 51 §5107. The license must be renewed yearly, and is valid 12 months from July 1 - June 30.

Upon issuance of a Distributor's license, the licensee must file a monthly tax return, identifying all taxable and non-taxable receipts and distributions of gasoline (as defined by 30 Del C, c. 51 §5101(4)). These returns must be filed by the 25 ^th of the month following the month in which activity occurs (or the next business day, if the 25^th falls on a weekend or holiday). When tax reports are filed beyond the due date, interest accrues and late file penalties are assessed, in accordance with 30 Del C, c. 51 §5115.

By law, Motor Fuel Distributors must maintain records of gasoline received, used, sold and/or delivered for a period of three years. This includes invoices, bills of lading, and any other documents that verify Distributor activities.

In order to assist with the completion of the Distributor tax return, MFTA has created a sample return.  In addition, a Microsoft Excel workbook has been created, where transactions can be entered to the schedules, and the schedule totals carry to the cover sheet. The tax computation is also performed by the workbook. To access this document, click on the "Distributor Return Package" link below.

Motor Fuel Distributor Forms and Instructions

• Motor Fuel Law and Promulgated Regulations
• Motor Fuel Distributor Application
• Motor Fuel Distributor Application Instructions
• Motor Fuel Distributor Bond Application
• Motor Fuel Distributor Tax Return Cover Sheet
• Motor Fuel Distributor Tax Return Cover Sheet Instructions
• Multiple Schedule of Receipts
• Multiple Schedule of Receipts Instructions
• Multiple Schedule of Disbursements
• Multiple Schedule of Disbursements Instructions
• Distributor Return Package
• Motor Fuel Distributor License Cancellation Instructions