Special Fuel Supplier

A Special Fuel Supplier, as defined by 30 Del C c. 51 §5131(8), is "any person in the business of handling or selling special fuel who delivers or places such fuel into a bulk supply tank or tanks of a special fuel user or special fuel dealer."

Any business entities intending to operate as a Special Fuel Supplier 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 T30 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 Supplier'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)). 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 Suppliers must maintain records of special fuel inventories, receipts, deliveries, 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 Supplier 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.

In addition, 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.

In order to assist with the completion of the Supplier 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 "Supplier Return Package" link below.

Special Fuel Supplier Forms and Instructions

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

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