A Gasoline Dealer License is mandatory for a person who imports, exports, buys, or sells gasoline in bulk. Licenses are required to ensure that the State receives all the gasoline tax money that it should receive. There are six classes of Gasoline Dealer License. However, a person may have only one license type at any time.
FEDERAL: There is no federal authority for this type of State license; however, there is a very similar federal excise tax imposed on gasoline. The tax is administered by the U.S. Treasury Department, Internal Revenue Service, Excise Tax Section. STATE: Tax-General Article Title 9, Subtitle 3, Annotated Code of Maryland; COMAR 03.03.01
PRE-APPROVAL: The application for the Gasoline Dealer License is a general business profile questionnaire, which is used to determine the classification of dealer most appropriate and the amount of potential tax liability for surety bond coverage. Prior to any Maryland gasoline transactions, the required surety bond must be executed. The application must include the following information:
- The applicant's legal name and address.
- The applicant's federal identification number.
- Type of ownership and type of business.
- Types of fuel used or sold.
- Number of highway and non-highway vehicles.
- Corporate officer information.
- Estimated annual purchase and sales information.
- Location of any bulk storage.
POST-APPROVAL: The licensee files monthly reports. If delivered by the licensee, reports must be filed with the Comptroller of Maryland by the last day of the month following the month being reported. For example, the May activities report must be received by the last day of June. If mailed, the report must be postmarked at least two days prior to the last day of the month following the report period. For example, the May activity report must be postmarked by June 28.
If motor fuel taxes due on the report exceed $20,000, the financial portion must be submitted by electronic funds transfer (EFT). All surety bonds and licenses expire May 31 every year. Any outstanding reports and unpaid taxes, penalties, or interest must be cleared by May 1 to ensure uninterrupted continuation of the license. If a license expires or is canceled for cause, all gasoline activity must stop immediately.
A trader's license or other general business license may be required from the local Clerk of the Court.
At least one motor fuel inspection registration is required for each Gasoline Dealers License. Each storage facility in surrounding states, directly supplying gasoline to Maryland as well as each bulk storage facility in Maryland, must be registered for fuel quality assurance purposes. Registration information is available from the Comptroller of Maryland. Out-of-State registrants must first register with the Maryland Department of Assessments and Taxation at 410-767-1340.
- An applicant submits an application form.
- The Comptroller of Maryland determines the license classification most suited to the described business. At the same time, a surety bond amount is determined.
- The surety bond form is mailed to the applicant.
- Any required motor fuel inspection registration forms must be completed and returned prior to the issuance of a license.
- After return of the executed bond and power of attorney, the gasoline dealer license is issued.
AVERAGE: 30 days
A person may appeal a decision to cancel a license to the circuit court within 30 days. No further gasoline activity may occur when a license is canceled. All persons should be aware of the confiscation provisions of the Tax-General, Article Title 13, Subtitle 8, Annotated Code of Maryland.
Monthly reports are required of all licensees, even if there is no activity in month. Zero activity would be reported. If a licensee has no activity for six or more months, the license is subject to cancellation. Minimum surety bond amounts are established in the Tax-General Article, Section 13-825 and vary by license class. For a return not to be considered delinquent, the detail and financial portions must be received at the Comptroller's Office by the due date.