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Motor Fuel Licensing & Registration

How do I know if I need a motor fuel license?

If you act as a distributor, supplier, receiver, or blender, you must be licensed under the Motor Fuel Tax Law. Receivers must also be licensed under the Environmental Impact Fee Law. One receiver license is valid under both laws.

For which motor fuel license type should I apply?

Apply to be licensed as a distributor if you

  • import gasoline products into Illinois;
  • produce, refine, blend, compound, or manufacture motor fuel in Illinois;
  • have 30,000 gallons of gasoline bulk storage at an Illinois bulk storage plant and distribute the fuel primarily by tank car or tank truck; or
  • export gasoline products out of Illinois.

Apply to be licensed as a supplier if you

  • import special fuel products into Illinois;
  • have 30,000 gallons of special fuel bulk storage at an Illinois bulk storage plant and distribute the special fuel primarily by tank car or tank truck; or
  • export special fuel products out of Illinois.

Apply to be licensed as a receiver if you

  • import motor fuel, aviation fuel, home heating oil, or 1-k kerosene into Illinois;
  • have 30,000 gallons of active petroleum product bulk storage at an Illinois bulk storage plant and distribute the fuel primarily by tank car or tank truck;
  • blend, produce, refine, compound, or manufacture petroleum products in Illinois; or
  • export motor fuel, aviation fuel, home heating oil, or 1-k kerosene out of Illinois.

What do I need in order to act as a blender?

You must have a blender permit, a distributor license, and a receiver license if you blend gasoline products.

How do I register for a motor fuel license?

To apply for any motor fuel license, complete Form REG-1, Illinois Business Registration Application and Form REG-8-A, Application for Motor Fuel Tax License.

These forms may be downloaded and mailed to us at the address provided on the forms or you may submit your application electronically using MyTax Illinois.

Are there any special requirements for out-of-state companies applying for a motor fuel license?

Yes. Out-of-state applicants must:

  • be licensed in their “home” state without any unpaid liabilities in that state for monies due for the sale, distributions, or use of motor fuel prior to applying for an Illinois motor fuel license and
  • complete and return Form RMP-14, Designation and Appointment of Agent.

Will I have to pay a registration or licensing fee?

No. Our motor fuel licenses are free. All you have to do is properly complete the registration application and be approved by the Motor Fuel Tax and Refund Section.

Will I be required to post a bond prior to receiving my license?

Yes. After we have reviewed your Form REG-8-A, you will be notified of the amount of bond to acquire. Your bond can be in the form of:

  • an insurance bond (complete Form REG-4-A, Financial Responsibility Bond) or
  • a letter of credit (complete Form REG-4-D, Financial Institution Irrevocable Letter of Credit Bond).

The minimum bond amount is $1,000 and the maximum bond cannot exceed twice the monthly amount that would be collectible as a tax in the event of a sale of motor fuel, or special fuel sold, distributed, and used by the distributor including tax-free sales, use, or distribution.

Will my motor fuel license expire?

No. Once issued your motor fuel tax license is good for as long as you are in business, you continue to operate as you were licensed, and you remain in compliance.

If I change the structure of my business do I need a new license?

Yes. If, for example, your business structure changes from a partnership to a corporation, you will need to reapply for a new license. Other reasons we may require a new license include:

  • the name of your company changes (even with the same ownership);
  • the licensee dies, and the business continues under a new licensee;
  • the licensee becomes incompetent, bankrupt, or otherwise subject to the jurisdiction of a court, and the business continues under a conservator, trustee in bankruptcy, or other person appointed by the court; or
  • the ownership changes.

Can my license be revoked?

Yes. Examples of why your motor fuel license can be revoked include:

  • filing your license application with false or inaccurate information;
  • inactivity (If your tax returns for two or more consecutive months do not show sufficient taxable sales to indicate an active business, you will be deemed not to be operating as licensed, and may be revoked. Not blending, importing, exporting, or maintaining a sufficient amount of storage also are cause for revocation.);
  • failing to file your tax returns;
  • failing to file a bond or replacement bond;
  • failing to keep the required books and records;
  • failing to pay final assessments;
  • failing to submit your books and records for inspection;
  • refusing an inspection or testing for dyed diesel; and
  • failing to file your support schedules through MyTax Illinois.

As a bulk user, are there forms I need to file?

No. We no longer license bulk users; therefore you do not have to file a return with us. The person supplying you with the fuel is responsible for reporting.

Can I sell special fuel tax free?

Yes. If you are a licensed distributor or supplier, you may sell special fuel tax free if:

  • your customer is a licensed supplier of special fuel;
  • your customer is a licensed motor fuel distributor;
  • your customer is the federal government or one of its instrumentalities;
  • your customer is a municipal corporation owning and operating a local transportation system for public service in Illinois;
  • your customer is a privately owned public utility owning and operating certain transportation systems;
  • your sale is one in which delivery is made outside Illinois;
  • your customer uses fuel in a non-recreational type watercraft; or
  • your customer uses dyed diesel for off-highway use only.