Motor Fuel Diversion Reporting Required in South Dakota
Summary
The South Dakota Department of Revenue announces that effective January 1, 2026, businesses transporting motor fuel or special fuel on South Dakota's public highways exceeding 4,200 gallons must comply with new diversion reporting requirements under SD Codified Law 10-47B-46. Transporters must provide recipients with the original bill of lading, drop load ticket, or diversion tickets when fuel is delivered to a destination different from the one listed on the original bill of lading.
What changed
Starting January 1, 2026, South Dakota requires any person or business transporting motor fuel or special fuel exceeding 4,200 gallons on state public highways to file diversion reports. A diversion occurs when fuel is delivered to a location other than what is listed on the original bill of lading. Affected transporters must provide recipients (bulk plant operators, wholesale distributors, retail dealers, or end consumers) with a copy of the bill of lading or drop load ticket accompanying the shipment, plus any diversion tickets issued for the delivered fuel. Failure to provide accurate diversion documentation may result in penalties, license issues, or tax discrepancies. Fuel transporters and importers/exporters operating in South Dakota should prepare compliance systems to track and report diversion events and ensure proper documentation accompanies all fuel shipments.
The requirement creates new administrative obligations for fuel transportation companies and establishes documentation standards tied to South Dakota's fuel tax system. Businesses should review their current procedures for handling alternate delivery destinations and update processes to ensure timely submission of required documents to recipients. Consultation of the SD DOR Motor Fuel Guide is recommended for detailed compliance procedures.
What to do next
- Prepare to file diversion reports when fuel is delivered to a destination different from the bill of lading
- Provide bill of lading, drop load ticket, or diversion tickets to fuel recipients
- Consult the Motor Fuel Guide for compliance details
Archived snapshot
Apr 16, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
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):
- A copy of the bill of lading or drop load ticket accompanying the shipment.
- Any diversion tickets issued for the delivered fuel
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) .
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