SUPPLIER – $2,000 License Fee

A person who is subject to the general taxing jurisdiction of South Carolina and is registered under Section 4101 of the Internal Revenue Code for transactions in taxable motor fuels in the bulk transfer/terminal distribution system. A supplier must also be one of the following:

1. The position holder in a terminal or refinery in South Carolina.
2. Imports motor fuel subject to the User Fee into South Carolina from a foreign country.
3. Acquires motor fuel subject to the User Fee from a terminal or refinery in South Carolina pursuant to a (two-party exchange).
4. A position holder in a terminal or refinery outside of South Carolina who imports taxable motor fuel into the state on his own account.

Suppliers will be automatically registered as a Fuel Vendor with eligible purchaser status. No fee or bond is required for the Fuel Vendor License.

Supplier Bond/Financial Statement
Suppliers are required to post bond of $1 million or provide a financial statement to verify $5 million net worth as required by SC Code Section 12-28-1155(B). Bond requirement increases to $2 million if the supplier is not registered under IRC 4101.

PERMISSIVE SUPPLIER – $100 License Fee

A person who does not have a physical presence in South Carolina but meets all of the following requirements:

• Is a position holder in a federally qualified terminal located outside South Carolina, or
• Acquires product in out-of-state terminals through a qualified two-party exchange.
• Is registered under Section 4101 of the Internal Revenue Code for transactions in taxable motor fuels in the bulk transfer/terminal distribution system.

Permissive Suppliers will be automatically registered as a Fuel Vendor with eligible purchaser status. No fee or bond is required for the Fuel Vendor License. 

Permissive Supplier Bond/Financial Statement

Permissive Suppliers are required to post bond of $1 million or provide a financial statement to verify $5 million net worth as required by SC Code Section 12-28-1155(B). The bond requirement increases to $2 million if the permissive supplier is not registered under IRC 4101.

All Suppliers: Must include the Supplier Notice of Election with the application. 

IMPORTERS – A person that causes motor fuel to be delivered into South Carolina on his behalf, for his own account or for resale to a purchaser in this state from another state. An importer license is required if the motor fuel is delivered to a facility that is not a qualified terminal. This includes any person who does not have a pre collect agreement with a terminal supplier and causes motor fuel subject to the User Fee to be delivered to a destination within South Carolina by transport truck. If the motor fuel to be imported is transported by the importer's transport trucks, see Transporter License. 
NOTE: An importer license is not required if all Motor Fuel User Fees are paid to a supplier, or if the product is delivered direct to a qualified IRS terminal location.

Importers should select one of the importer licenses based on their company's preference. The following are the specific requirements of each license:

BONDED IMPORTER – $2,000 License Fee

OCCASIONAL IMPORTER – $500 License Fee

TANK WAGON OPERATOR-IMPORTER – 25 Mile Restriction – $50 License Fee

A person qualifies to apply for the tankwagon importer license if the import deliveries do not exceed 25 miles from the South Carolina state line. The imported motor fuel must originate from a fuel storage/distribution facility (bulk plant/storage) that is not recognized as an IRS qualified terminal. 

Bond/Financial Statement: Tankwagon Importers are required to post bond of three (3) times the estimated monthly User Fee liability for imports. If the estimated import liability is less than $2,000 a minimum bond of $2,000 will be required or the applicant may submit a financial statement for consideration.

The Tank Wagon Importer will be issued a Fuel Vendor license based on the importer license but must apply for Eligible Purchaser Status for South Carolina Motor Fuel User Fee paid purchases separately and post the required surety. Eligible Purchaser Status is optional not required. The importer will need to apply for any other Motor Fuel Licenses applicable to the taxpayer's business. Fees and bonds for the additional licenses will be required as necessary.

TERMINAL OPERATOR (In-state) – $300 License Fee

A person who owns, operates or controls a fuel storage and distribution facility that is recognized as a qualified IRS terminal which is located in South Carolina.

Bond/Financial Statement: Terminal Operators are required to post a $2,000 bond or the applicant may submit a financial statement for consideration.

OUT OF STATE TERMINAL – No License Fee – No Bond

A person who is subject to the police power of South Carolina who owns, operates, or controls a fuel storage and distribution facility that is recognized as a qualified IRS terminal which is located outside of South Carolina and has record of removals for delivery into South Carolina

TRANSPORTER (Interstate or Intrastate) – $50 License Fee

A person not licensed as a supplier that is engaged in the business of transporting motor fuels subject to the User Fee. The license is required for operators engaged in both interstate and intrastate commerce. The interstate license will cover both inter and intra activity. The transporter will need to apply for any other motor fuel licenses applicable to the taxpayer's business. Fees and bonds for the additional licenses will be required as necessary.

Bond/Financial Statement: Transporters are required to post a $2,000 bond or the applicant may submit a financial statement for consideration.

FUEL VENDOR – $50 License Fee – No Bond

A person who purchases motor fuel subject to the User Fee for resale within this state from a licensed terminal supplier. The fuel vendor will need to apply for any other Motor Fuel Licenses applicable to the taxpayer's business. Fees and bonds for the additional licenses will be required as necessary.

FUEL VENDOR BLENDER – No License Fee – No Bond

Any fuel vendor that blends another liquid with gasoline or diesel for use as a motor fuel is required to obtain a Fuel Vendor Blender License.

ELIGIBLE PURCHASER STATUS – Optional not Required for Fuel Vendors

Fuel Vendors may request eligible purchaser status.

Eligible Purchaser Benefits

A fuel vendor approved as an eligible purchaser may make deferred payment of the Motor Fuel User Fee and other applicable fees to the supplier. Eligible purchaser status also qualifies the fuel vendor to apply of the tare allowance refund on South Carolina User Fee paid gasoline and diesel purchased from a terminal supplier.

Eligible Purchaser Requirements

Payments of Motor Fuel User Fee and other applicable fees must be made to the supplier by electronic funds transfer and must be on time to retain the eligible purchaser status. Contact each supplier for detailed information on payment dates.

Bond/Financial Statement: Fuel Vendors requesting eligible purchaser status are required to post bond of three (3) times the estimated monthly User Fee liability to all suppliers or the applicant may submit a financial statement for consideration. 

EXPORTER – $100 License Fee

A person that exports motor fuel from South Carolina into another state from a fuel storage and distribution facility not recognized as an IRS terminal (bulk plant/storage).

Exporter License Required If: South Carolina User Fee paid and other applicable fee paid motor fuel is exported from a non-IRS terminal location to another state by the seller or purchaser. The exporter will need to apply for any other Motor Fuel Licenses applicable to the taxpayer's business. Fees and bonds for the additional licenses will be required as necessary.

Exporter License NOT Required If: Motor Fuel is exported from an IRS terminal and the bill of lading reflects a destination state other than South Carolina. The transaction is reportable on Schedule 7 of the licensed Supplier's return.

Bond/Financial Statement: Exporters are required to post a $2,000 bond or the applicant may submit a financial statement for consideration.

MISCELLANEOUS – No License Fee – No Bond
The following activities require the miscellaneous motor fuel license:

1. Counties and municipalities that purchase dyed low sulfur diesel fuel. These entities are exempt from the federal tax but not from the state Motor Fuel User Fee. All gallons of dyed low sulfur diesel used in highway vehicles by a county or municipality should be reported on the monthly User Fee return.
2. Liquid propane gas (LPG), compress natural gas (CNG) or liquefied natural gas (LNG) dealers that make sales of these products for use in highway vehicles or that have delivery trucks that use the product. Dealers will report all gallons sold for or used in highway vehicles.
3. Producers/users of substitute fuels and/or liquids on which the Motor Fuel User Fee, Inspection, and Environmental Fees have not been previously paid that are suitable for used in highway vehicles. This would include but is not limited to biodiesel for use in personal vehicles.
4. Persons not licensed as fuel vendors that blend materials with motor fuel. This would include but is not limited to yellow grease, waste oil, and used cooking oil blended with diesel fuel for highway vehicles.

Miscellaneous: Must include with the application the information sheet indicating the activity(s) to be reported.

MOTOR FUEL MANUFACTURER – No License Fee

A person manufacturing or otherwise producing a substitute fuel or diesel fuel in the State of South Carolina.

Bond/Financial Statement: Manufacturers are required to post bond of three (3) times the estimated monthly User Fee liability. If the estimated manufacturing liability is less than $2,000, a minimum bond of $2,000 will be required or the applicant may submit a financial statement for consideration.