Special Fuel Dealer

A Special Fuel Dealer, as defined by 30 Del C, c 51, §5131(5), is "any person in the business of handling special fuel who delivers any part thereof into the fuel supply tank or tanks of a motor vehicle not then owned or controlled by the person". A Special Fuel Dealer license allows an entity to receive tax-free Special Fuel, use the fuel in a taxable or non-taxable (off-highway) manner, sell Special Fuel in a taxable manner, sell Special Fuel in a non-taxable manner (except for low sulfur clear diesel fuel), and pay excise tax based only on the taxable sales and/or usage.

Any business entities intending to operate as a Special Fuel Dealer 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, §5134(d). The license must be renewed yearly, and is valid 12 months from July 1 - June 30.

Upon issuance of a Dealer's license, the licensee must file a monthly tax return, identifying all taxable and non-taxable receipts and distributions of special fuel (as defined by 30 Del C, c 51, §5131(4)). A Dealer must also file a report of the meter (totalizer) reading of each diesel pump as of the last day of each month. 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, §5136.

By law, Special Fuel Dealers must maintain records of special fuel inventories, receipts, use and sales or other dispositions in any other manner, for a period of three years. This includes invoices, bills of lading, and any other documents that verify Dealer activities.

PLEASE NOTE: In accordance with the Policy Directive Regarding the Taxation of Low Sulfur Clear Diesel Fuel  , sales of Low Sulfur Clear diesel fuel to purchasers not the holders of a valid User, Dealer or Supplier license issued by the Motor Fuel Tax Administration must include the Delaware Special Fuel excise tax.

Since Dealers are not authorized to make tax-free bulk deliveries, this Directive only applies to Dealer direct fuelings to vehicles and equipment from the licensed Dealer tank. Direct fuelings of Low Sulfur Clear diesel fuel to vehicles and equipment must include the Delaware Special Fuel excise tax, even if the vehicles are owned/controlled by licensed Special Fuel Users and Dealers. User and Dealer licenses only allow tax-free receipts to designated tanks.

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 "User/Dealer Return Package" link below.

Special Fuel Dealer Forms and Instructions

• Special Fuel Law and Promulgated Regulations
• Special Fuel Dealer Application
• Special Fuel Dealer Application Instructions
• Special Fuel Bond Application
• Special Fuel Dealer Tax Return Cover Sheet
• Special Fuel Dealer Tax Return Cover Sheet Instructions
• Multiple Schedule of Receipts
• Multiple Schedule of Receipts Instructions
• Meter Readings Form
• Meter Readings Form Instructions
• User/Dealer Return Package
• Special Fuel User/Dealer License Cancellation Instructions

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