Special Fuel User

A Special Fuel User, as defined by 30 Del C c. 51 §5131(6), is "the owner or other person responsible for the operation of a motor vehicle at the time special fuel is placed in the fuel supply tank or tanks thereof while such vehicle is within this State." A Special Fuel User license allows an entity to receive tax-free Special Fuel, use the fuel in a taxable or non-taxable (off-highway) manner, and pay excise tax based only on the taxable usage.

Any business entities intending to operate as a Special Fuel User 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 User'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 Users must maintain records of special fuel inventories, receipts, use 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 User activities.

PLEASE NOTE: Special Fuel Users are not authorized to place Special Fuel into vehicles not owned or controlled by them. In order to do so, a Special Fuel Dealer license must be obtained.

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 User Forms and Instructions

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

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