Licensing and Regulatory

Motor Fuel Licenses

I. POLICY

The Comptroller of Maryland, Field Enforcement Bureau, Licensing and Registration Section shall require a person to obtain a Motor Fuel License before engaging in the business of a Motor Fuel Dealer, Distributor, Special Fuel Seller, Special Fuel User, or Turbine Fuel Seller. The Licenses apply to persons importing or exporting motor fuel in Maryland. Motor Fuel Licenses expire on May 31^st of each year after its effective date, except in the case of a Class “G Temporary” License, which expires on the termination of the contract for which it was issued, or on May 31^st of each year after its effective date. A Class “G Temporary” License issued during a declared state of emergency is only valid for the duration of the emergency and will be cancelled upon suspension of the declared emergency. A Motor Fuel License is valid only for the person whose name the license is issued and is not assignable.

II. MOTOR FUEL LICENSE QUALIFICATIONS

Class “A” an entity that blends or refines gasoline; owns or controls and dedicates at least 1 million gallons of storage capacity in the State to gasoline, other than aviation gasoline, and to special fuel; and keeps in the State an inventory of at least 500,000 gallons of that gasoline and special fuel; or an entity that is wholly owned by one or more entities that would otherwise qualify as a Class “A” licensee. A Class “A” license authorizes the licensee to import into this State gasoline on which the motor fuel tax has not been paid; export from this State gasoline on which the motor fuel tax has not been paid; and acquire in this State from another holder of a Class “A” license gasoline on which the motor fuel tax has not been paid.
Class “B” an applicant shall be an entity that is licensed by the state from which the gasoline is to be exported for importation into this State. A Class “B” license authorizes the licensee to import into this State gasoline on which the motor fuel tax has not been paid, for personal use or for redistribution. A holder of a Class “B” license may not acquire in this State gasoline on which the motor fuel tax has not been paid.
Class “C” an applicant shall be an entity that is based in another state; is licensed by the state to which that gasoline is to be exported; has no sales in this State; and does not own, operate, or utilize in this State a facility that can store or dispense motor fuel. A Class “C” license authorizes the licensee to acquire, in this State, from a supplier whom the Comptroller specifically approves, gasoline on which the motor fuel tax has not been paid and export that gasoline. A holder of a Class “C” license may not import into this State gasoline on which the motor fuel tax has not been paid.
Class “D” an applicant shall be an entity that is organized under the laws of the State, does not blend or refine gasoline; has, in this State, excluding retail service stations, fixed storage tanks for at least 200,000 gallons of motor fuel other than aviation fuel; keeps an inventory of motor fuel in the State; and annually sells in the State: at least 1 million gallons of gasoline to persons who are not licensed dealers; and of the total gallons of motor fuel acquired, at least 50% in gasoline. A Class “D” license authorizes the licensee to acquire, in this State, gasoline on which the motor fuel tax has not been paid from a holder of a Class “A” license; or another holder of a Class “D” license. Unless authorized by the Comptroller, a holder of a Class “D” license may not import into this State gasoline on which the motor fuel tax has not been paid.

III. MOTOR FUEL LICENSE QUALIFICATIONS

Class “F” authorizes the licensee to engage, in this State, in the business of a turbine fuel seller.
Class “G-Temporary” an applicant shall be an entity that is not entitled to any other class of license for dealers; has a specific federal contract to supply gasoline to the United States or a unit of the United States that is entitled to an exemption under § 9-304 of this subtitle or to a refund under § 13-901(f)(1)(ii)2.A of this article; and is licensed by the state from which that gasoline is to be exported, if any part is to be imported into this State. A Class “G-Temporary” license authorizes the licensee during the term of the federal contract for which the license is issued to acquire, in this State, gasoline on which the motor fuel tax has not been paid, in the amount that the contract specifies and from a supplier whom the Comptroller specifically approves; and deliver that amount to the location that the contract specifies. A Class “G-Temporary” license may be extended if the original federal contract is extended; or during the term of the license, another contract is awarded to the licensee.
Class “S” authorizes a licensee to engage, in this State, in the business of a special fuel seller.
Class “U” authorizes a licensee to engage, in this State, in the business of a special fuel user.
Class “W” an applicant shall be an entity that is not entitled to any other class of license. A Class “W” license authorizes a licensee to engage, in this State, in the business of a distributor.
Dealers licensed before July 1, 1985, who hold any class of license because the dealer was licensed before July 1, 1985, have the privileges authorized for that class until the dealer is required to apply for a new license, in accordance with regulations of the Comptroller in effect as of July 1, 1985.

IV. MOTOR FUEL LICENSE APPLICATION REVIEW

An Applicant for a Motor Fuel License shall submit the following to the Bureau:

A completed application, on the form that the Comptroller requires stating the name under which the applicant does or will do business in the State. Partnerships require the name of each partner. Business firms require the name of each member and corporations require the names and addresses of their principal officers, resident agent, attorney, and a security bond as required under Title 13 of this article.

The following procedure is performed upon receipt of the application:

The Motor Fuel Licensing and Registration Section shall keep an index of all records for each application and licensee. These records are kept in the Comptroller electronic mainframe tax system, the PSIsafe file storage application, and various other databases. Paper files and records are kept for the duration of time allotted in the Bureau’s Retention Schedule.
Review and inspection of the contents of application:
Official date and time stamped on the front of the application.
The business must indicate what type of motor fuel license for what they wish to apply.
Confirm the business name and address are on the application.
Crosscheck the DSSN database by entering the Federal Identification number to confirm if the business already has a motor fuel account established.
Run a query within the CICS LICN database by entering the Federal Identification number, and the officers’ Social Security Number to confirm there are no outstanding liabilities associated with the business or officers’ personal liabilities.
Conduct compliance check with SDAT to confirm the business is registered to operate in Maryland and is in “Good Standing”.

V. MOTOR FUEL LICENSE PROCEDURES

The Business must provide the names, titles, home address, phone numbers with social security number of all officers if the type of business is a corporation, partnership, or limited liability.
Non-Maryland residents must have a Maryland Resident Agent listed on application.
The business must indicate if there will be a cancellation of an existing account or a business name change.
The business needs to answer if they have commingled storage in Maryland, if so, they must submit a copy of the Terminal Agreement (RLS-305).
Confirm if the business operates or supplies fuel to any other retail stations in Maryland, if so, the business must indicate the number of locations.
The business must indicate the type of on-road and off-road vehicles in use and the type of fuel used.
Verify the estimated total volume of fuel is documented in gallons for any fuel that will be imported, exported, and purchased in Maryland and purchased in Maryland.
If a business sells gasoline to the US Government, the business must provide a copy of the contract(s) and a list of the government agencies or facilities sold to.
Verify the business indicates the method by which they receive or ship motor fuel products
The business will need to indicate if they own and operate petroleum transporter conveyances and provide the total number of vehicles and the method of shipment.
Verify that the business lists all other states where a valid Motor Fuel License is held.
Confirm whether the business is a refiner of motor fuel or aviation fuel.
Confirm the original documents used in the preparation of reports are maintained at the same location as identified in Question 1. If not, the business must provide the address of where the documents and reports are prepared and maintained.
Confirm that the name and contact information of person responsible for audit purposes is provided.
The business must complete a detailed explanation of their proposed motor fuel operations and intended use of the fuel in the State of Maryland. This is necessary to verify the correct type of license indicated on the application, if a license is required, and if the applicant qualifies for an exemption certificate. If this is not included, the applicant must resubmit the application.
Applicants will be contacted for missing or erroneous information. Applications will be held for 60 days awaiting additional information. After 60 days, the applications will not be processed and discarded.
Following completion of the review and approval of the application, the account information is entered into the Comptroller licensing system where license numbers are assigned. The Maryland Motor Fuel License will then be generated and mailed to the applicant where applicable.

NOTE: If the application is not clear on what type of license the business is requesting, the application will be escalated to the Deputy Director of Regulatory and Administrative Operations or the Director of Field Enforcement Bureau for approval of continuance.

VI. STANDARD OPERATING PROCEDURES

Standard Operating Procedures (SOP) for motor fuel licensing and registration are located on the FEB network drive in the SOP folder.

VII. CANCELLATION

None.

The following regulations govern motor fuel licenses:

Tax General, Title 9, Subtitle 101 through 337 of the Annotated Code of Maryland.
Code of Maryland Regulation (COMAR) 03.03.03.01 through 04.