A: 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 Division of Motor Vehicles. 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 25th of the month following the month in which activity occurs (or the next business day, if the 25th 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, Transportation Services has created a Motor Fuel Distributor Return Sample Package. 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.
 

A: 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 Division of Motor Vehicles. 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 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 25th of the month following the month in which activity occurs (or the next business day, if the 25th 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 Division of Motor Vehicles 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, Transportation Services has created a Special Fuel Supplier Return Sample Package. 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.
 

A: 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.

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 User or Special Fuel Dealer must obtain a license from the Division of Motor Vehicles. 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 or 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 25th of the month following the month in which activity occurs (or the next business day, if the 25th 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 and Dealers 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/Dealer 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.

In order to assist with the completion of the User or Dealer tax return, Transportation Services has created a Special User/Dealer Return Sample Package. 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.
 

A: The International Registration Plan, known as IRP, is a registration reciprocity agreement among states of the United States and provinces of Canada providing for payment of license fees on the basis of total distance operated in all jurisdictions. The unique feature of this Plan is that, even though license fees are paid to the various jurisdictions in which fleet vehicles are operated, only one license plate and one cab card is issued for each fleet vehicle when registered under the Plan. Delaware became a member of the IRP effective January 1, 1995.

The Delaware IRP Program is administered by the Division of Motor Vehicles.
 

A: The UCR Agreement is established by federal law in the UCR Act, which is part of the federal highway reauthorization bill known as the Safe, Accountable, Flexible, Efficient Transportation Equity Act, A Legacy for Users ("SAFETEA-LU"), Public Law 109-59, enacted August 10, 2005. The UCR Act is sections 4301 through 4308 of SAFETEA-LU. In particular, the structure of the UCR Agreement is set forth in section 4305 of the UCR Act, which enacts §14504a as a new section in 49 United States Code ("USC").
 

A: Effective July 1, 1996, Delaware became a member of the International Fuel Tax Agreement (IFTA). IFTA is a base jurisdiction fuel tax agreement intended to promote and encourage the most efficient use of the highway system. IFTA is administered among jurisdictions to simplify the reporting of fuel taxes by interstate motor carriers ("jurisdiction" refers to a State of the United States, the District of Columbia or a Province or Territory of Canada). It makes the administration of motor fuels taxation uniform concerning motor carriers operating in several member jurisdictions and reduces the paperwork and compliance burdens for fuel tax reporting. Upon application, the carrier's base jurisdiction will issue credentials that will allow the IFTA carrier to travel in all IFTA jurisdictions. The Delaware IFTA Program is administered by the Division of Motor Vehicles.
 

A: There are four steps to the certification process: (1) Acquiring the application, (2) application submission (if all requirements are met), (3) a certification hearing (If intervention occurs), and (4) satisfaction of bonding/insurance/inspection/safety requirements.

To begin the application process an applicant MUST meet the following criteria:

• The applicant must prove that the proposed operations will serve a useful public purpose, a useful public necessity and a useful public convenience responsive to a public demand. The applicant must satisfactorily present evidence that existing Public Carriers are not able to meet demands for Public Carrier service by the public. This requirement is satisfied through the presentation of petitions, surveys, and requests for service from Medicaid providers, demographic trend surveys, or other documents that clearly identify that a public demand exists, and existing Public Carriers are unable to meet the demand. Verbal or written statements by the entity intending to apply for a Certificate of Public Convenience and Necessity, in and of themselves, are insufficient without supporting documentation.
• The applicant, as to its proposed service and/or operations, has sufficient financial ability to compensate members of the public for injuries to person or property, which they may sustain, from acts or failures to act of the Public Carrier. In accordance with the authority granted by statute to the Office of Public Carrier Regulation, if a hearing is granted, and all criteria are met, that carrier must prove financial fitness, by providing one of the following: (1) a general liability insurance policy, or (2) a bond (in accordance with Office of Public Carrier Regulation requirements). This Financial Fitness requirement must be satisfied prior to issuance of a certificate. For the general liability insurance policy, the DelDOT DMV Office of Public Carrier Regulation must be listed as a Certificate Holder.
• As to the proposed service and/or operations, the applicant must comply with all applicable motor vehicle laws of the State, including, but not limited to, 21 Del C, c. 21, Subchapter IV. The principals of the entity applying for certification, along with their intended drivers, must not have adverse driving records. In addition, the vehicles intended for Public Carrier use must be properly registered and titled in the company's name, or a lease agreement between the business entity applying for certification and the vehicle owner must be presented. Finally, the vehicle(s) in question must not have adverse operational, safety or inspection issues.
• As to the proposed service and/or operations, the applicant is covered by and with a public liability and property damage policy or policies issued by a company licensed to conduct insurance business in the State with coverages. A letter of intent for coverage, in the amounts legally required (as identified in Chapter 3 of the Public Carrier Rules) from a qualified insurance company satisfies this requirement. If a certificate is granted, a Certificate of Insurance must be provided to the Office of Public Carrier Regulation prior to actual issuance of the certificate. The DelDOT DMV Office of Public Carrier Regulation must be listed as a Certificate Holder.

Applicants must demonstrate their ability to meet these requirements in order to even be considered for a Certificate of Public Convenience and Necessity. The application must be completely filled out and returned to the Office of Public Carrier Regulation, with the appropriate filing fee ($75). The Office of Public Carrier Regulation will send notification to existing the Public Carriers. If an existing Public Carrier intervenes, a hearing is held to verify all information, and to give other Public Carriers the opportunity to participate in the process.

The applicant is responsible for the cost of the Court Reporter, who makes a verbatim transcript of the proceedings for the Office Of Public Carrier Regulation's permanent files. Payment of these fees is to be rendered at the conclusion of the hearing.

If, after the hearing process, approval is granted, a Certificate of Public Convenience and Necessity will not be issued until bonding, insurance, inspection and safety requirements are met. Failure to meet any of these requirements will prevent Certificate issuance.
 

A: The excise tax rate for Motor Fuel (Gasoline, Gasohol and Aviation Gasoline) is $0.23 per gallon. The excise tax rate for Special Fuel (all other fuels placed into a licensed motor vehicle in Delaware) is $0.22 per gallon.