Motor Fuel Diversion Reporting Requirement in South Dakota

Motor Fuel Diversion Reporting Requirement in South Dakota

 Effective January 1, 2026, businesses that transport motor fuel or special fuel within South Dakota are subject to specific documentation and reporting requirements under state law. One key obligation is the filing of a diversion report when fuel is delivered to a location other than what is listed on the original bill of lading.

Who Must Comply?

Any person or business transporting motor fuel or special fuel on South Dakota’s public highways must comply with this requirement. This includes transporters, importers/exporters, and any entity involved in the movement of fuel in quantities exceeding 4,200 gallons.

What is a Diversion?

A diversion occurs when a shipment of fuel is delivered to a destination different from the one originally listed on the bill of lading issued by the terminal or bulk plant operator.

Reporting Requirements

According to South Dakota Codified Law 10-47B-46, the transporter must provide the following documents to the recipient of the fuel (e.g., bulk plant operator, wholesale distributor, retail dealer, or end consumer):

These documents ensure transparency and proper tax tracking for fuel deliveries within the state.

Why It Matters

Failure to provide accurate diversion documentation may result in penalties, license issues, or tax discrepancies. Proper reporting helps maintain the integrity of South Dakota’s fuel tax system and supports infrastructure funding across the state.

Need Help?

For more information or assistance with diversion reporting, visit the South Dakota Department of Revenue Motor Fuel Division or consult the Motor Fuel Guide (PDF).