They are required to apply for a permit but they are not required to post a bond or file reports. However, this does not eliminate the need to maintain kerosene receipts and disbursement records. The only obligation is to complete an application for a permit and renew it yearly. Continue as a Class-6 distributor. Under Class-6, distributors do not make all sales from blocked pumps.
Distributors can dispense undyed kerosene from any retail pump.
They are not permitted to use or sell the undyed kerosene in a motor vehicle, or sell it for a taxable use. The kerosene dealer provisions were effective as of June 1, 1999. Refunds of the tax paid on dyed fuel are available through the distributor where the fuel was purchased, retroactive to October 1, 1997.