2022 Delaware Code
Title 30 - State Taxes
Chapter 51. MOTOR FUEL TAX
Subchapter IV. Aviation Jet Fuel
§ 5173. Jet fuel supplier's license; bond.
(a) License required. —
It is unlawful for any person to act as an aviation jet fuel supplier in this State unless the person holds a valid aviation jet fuel supplier license issued by the Department.
(b) Application. —
A person must apply and pay a $10 fee to the Department to obtain an aviation jet fuel supplier license.
(c) Form of application. —
The application must be filed upon a form prepared and furnished by the Department. The application may contain such information as the Department deems necessary.
(d) Bond. —
(1) a. The Department may not issue an aviation jet fuel supplier license to any person, or continue in force an aviation jet fuel license issued to a person, unless the person has furnished a surety bond in such form and amount as the Department may require to secure compliance with this subchapter.
b. The Department may not require a surety bond of less than $5,000 or more than $200,000.
c. A bond filed with and approved by the Department remains in force and effect, without the necessity of periodic renewal, until such time as the aviation jet fuel supplier's license is revoked for cause, or otherwise cancelled or surrendered.
(2) The bond required under paragraph (d)(1) of this section must meet all of the following:
a. Be in a form approved by the Department.
b. Be executed by a surety company approved by the Department and duly licensed to do business under the laws of this State.
c. Be payable to the State.
d. Be conditioned upon the licensed aviation jet fuel supplier doing all of the following:
1. Promptly filing true reports with the Department.
2. Promptly paying to the Department all aviation jet fuel taxes levied or imposed by this State, together with all penalties or interest on the taxes.
3. Faithfully complying with the provisions of this subchapter.
(3) a. The Department may require the filing of a new bond in a similar amount if either of the following occur:
1. The liability upon the bond previously filed by a licensed aviation jet fuel supplier is discharged or reduced, whether by judgment rendered, payment made, or otherwise.
2. The Department determines that any surety on the bond previously filed becomes unsatisfactory or unacceptable.
b. The Department shall forthwith cancel a licensed aviation jet fuel supplier's license if the supplier does not provide a new bond when required under paragraph (d)(3)a. of this section.
c. If a licensed aviation jet fuel supplier provides a new bond under paragraph (d)(3)a. of this section, the Department shall cancel and surrender the supplier's previous bond and substitute the new bond for it. However, the Department may not cancel the previous bond if any liability that has accrued under the provisions of the previous bond are still outstanding.
(4) a. If the Department decides, after a hearing, that the amount of the existing bond is insufficient to ensure payment to the State of the amount of the tax and any penalties and interest for which a licensed aviation jet fuel supplier is or may become liable, then the supplier shall, forthwith upon the written demand of the Department, file an additional bond in the same manner and form with like security as provided under this subsection.
b. The Department shall provide a licensed aviation jet fuel supplier with 5 days notice in writing of any hearing to be held under paragraph (d)(4)a. of this section.
c. The total amount of an additional bond required under paragraph (d)(4)a. of this section, combined with the bond required under paragraph (d)(1) of this section, may not exceed the maximum of $200,000.
d. The Department shall forthwith cancel a licensed aviation jet fuel supplier's license if the supplier fails to file an additional bond under paragraph (d)(4)a. of this section.
(5) a. The Department shall release and discharge from liability to the State for a bond any surety on a bond furnished by a licensed aviation jet fuel supplier under this subsection if the surety mails a written request to the Department by certified mail, return receipt requested.
b. Upon receipt of a request under paragraph (d)(5)a. of this section, the Department shall forthwith acknowledge in writing the receipt of the request and shall thereafter inform the surety that it is released and discharged from any and all liability to the State accruing on such bond after the expiration of 60 days from the date on which the Department received the surety's request for release and discharge.
c. Simultaneously with the action under paragraph (d)(5)b. of this section, the Department shall notify the licensed aviation jet fuel supplier who furnished the bond of all of the following:
1. That the surety will be released and discharged from any and all liability on a certain date.
2. That unless the supplier, on or before the expiration of the 60 day period under paragraph (d)(5)b. of this section, files with the Department a new bond in the amount and form provided in this subsection, the Department will forthwith cancel the supplier's license.
(e) Issuance of license. —
(1) If a person files an application and bond in proper form, the Department shall issue an aviation jet fuel supplier license to the person unless any of the following apply:
a. The person formerly held any type of license before filing the application that was revoked for cause.
b. The person is filing the application as a subterfuge for the real party in interest who formerly held any type of license before filing the application that was revoked for cause.
c. The Department finds other sufficient cause to deny the license.
(2) Before the Department may refuse to issue a license under paragraph (e)(1) of this section, the Department must provide the person with a hearing. The Department shall grant the person at least 30 days written notice of the time and place of the hearing.
(f) Term of license. —
(1) An aviation jet fuel supplier license issued under this section expires on June 30 of each year.
(2) A licensed aviation jet fuel supplier that desires to remain licensed shall annually apply for a license.
(g) Assignment forbidden. —
An aviation jet fuel supplier license is not transferable.
(h) Revocation, cancellation, and surrender of license and bond. —
(1) The Department may revoke a licensed aviation jet fuel supplier's license for reasonable cause.
(2) Before revoking a license under paragraph (h)(1) of this section, the Department shall notify the licensed aviation jet fuel supplier to show cause within 30 days of the date of the notice why the license should not be revoked.
(3) Notwithstanding paragraph (h)(2) of this section, the Department may, at any time before and pending a hearing under paragraph (h)(2) of this section, in the exercise of reasonable discretion, suspend a licensed aviation jet fuel supplier's license.
(4) The Department shall cancel any license to act as an aviation jet fuel supplier immediately upon the licensed aviation jet fuel supplier's surrender of the license.
