What is a Fuel Tax Bond?

The fuel tax bond is a surety bond which guarantees that fuel sellers will pay all taxes which they owe the government on the sale, distribution or mixing of fuel. It also guarantees that they will pay any penalties or interest owed. Because of the nature of their guarantee, i.e. a financial guarantee, fuel tax bonds are considered high-risk, and sureties are usually very careful when underwriting these bonds.

Fuel tax bonds protect the public and the state from sellers of fuel who engage in dishonest business practices, or try to avoid paying taxes that they owe to the government. If a seller is found to violate state regulations pertaining to their license, a claim can be filed against their fuel tax bond. The exact requirements for obtaining a fuel tax bond are determined on a state level. Usually, states require sellers to get bonded as part of their licensing process.

Bryant Surety Bonds has access to both standard and special markets for fuel tax bonds. We can offer competitive rates on these bonds in all states. We also have a bad credit surety bond program for those applicants whose credit is less than stellar.

Find the Bond You Need

The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".

Arizona Motor Fuel Supplier Bond MOTOR CARRIER TAX & SERVICES (MVD) Apply Now
Arizona IFTA Motor Vehicle Division Apply Now
Arkansas Motor Fuel Tax Bond Motor Fuel Tax Section Apply Now
California Diesel Fuel Supplier Bond California Board of Equalization Apply Now
Colorado Mileage & Fuel Tax Colorado Department of Revenue Apply Now
Colorado Fuel Distributors Bond Colorado Department of Revenue Apply Now
Connecticut Surety Tax Bond Connecticut DRS Apply Now
Delaware Special Fuel (Distillate/LP Gas) State of Delaware Motor Fuel Tax Administration Apply Now
Delaware Motor Fuel Distributor Bond State of Delaware Motor Fuel Tax Administration Apply Now
Federal Government Taxable Fuel Bond Certification Department of the Treasury Apply Now
Florida Fuel or Pollutants Tax Bond Florida Dept of Revenue Apply Now
Georgia Motor Fuel Distributor's State of Georgia Apply Now
Illinois Financial Responsibility IL Dept of Revenue Apply Now
Indiana Special Fuel License Dept of Revenue Fuel Tax, Bonds & Licensing Apply Now
Indiana Gasoline Distributor's License Bond Indiana Department of Revenue Apply Now
Kentucky Motor Fuel Tax Refund Permit Holder's Department of Revenue Motor Fuels Tax Compliance Apply Now
Kentucky Motor Fuels License KY Dept of Revenue Motor Fuels Tax Compliance Apply Now
Louisiana Motor Fuels Tax Surety Bond Louisiana Department of Revenue Apply Now
Maryland Motor Fuel Dealer, User, Seller Bond Comptroller of Maryland Apply Now
Minnesota International Fuel Tax Agreement and International MN Dept of Public Safety Apply Now
Mississippi Contractor's Job Sales, Use, Income, Franchise, Wi Department of Revenue Apply Now
Mississippi Contractor's Job Sales, Use, Income, Franchise, Wi Mississippi Apply Now
Missouri Carter Energy Carter Energy Apply Now
Nebraska Motor Fuels Tax Bond Nebraska Dept of Revenue Apply Now
Nevada Fuel Tax (All Others, Sellers & Users) Bond Nevada Department of Motor Vehicles Apply Now
New Jersey Supplier of Motor Fuels Tax NJ Division of Taxation Apply Now
New Jersey Distributor of Motor Fuels Tax Bond State of New Jersey Apply Now
New York Bond of Distributor of Automotive Fuel NY State Dept of Taxation and Finance Apply Now
North Carolina Motor Fuels Tax Liability Bond North Carolina Department of Revenue Apply Now
Ohio Dealer in Motor Vehicle Fuel Department of Taxation Apply Now
Oregon Motor Vehicle Fuel Dealer Bond OR Dept of Transportation Apply Now
Oregon Use Fuel Seller Bond OR Dept of Transportation Apply Now
Pennsylvania Liquid Fuels and Fuels Tax PA Dept of Revenue Apply Now
South Carolina State Motor Fuel User Fee Bond Department of Revenue Apply Now
Tennessee Petroleum Products and Alternative Fuels TN Dept of Revenue Apply Now
Texas Motor Fuels Tax (Diesel) Continuous Comptroller of Public Accounts Apply Now
Texas Motor Fuels Tax (Gasoline) Continuous Comptroller of Public Accounts Apply Now
Texas International Fuel Tax License Bond Comptroller of Public Accounts Apply Now
Virginia (Lion Petroleum Inc) Fuel Supplier Bond Lion Petroleum, Inc. Apply Now
Washington Fuel Tax Bond Washington State Apply Now
West Virginia Motor Fuel Excise Tax Bond WV State Tax Dept. Apply Now

Fuel Tax Bond Cost

Fuel tax bond cost varies from state to state, due to the different regulations that are in place. The exact cost of your fuel tax bond is a percentage of the bond amount which is required by the state. This amount is the total coverage or penal sum, which a fuel tax bond can extend to obligees in the case of a claim.

For example, the amount of a fuel tax bond in Texas can range between the minimal sum of $30,000 and the maximum of $600,000. If not fixed on a state level, the exact amount of the bond is determined on a case-by-case basis by your state agency.

Based on this amount, a cost, or premium, is determined by sureties, which you need to pay in order to obtain the bond. This premium is based on several financial factors that sureties take into account, with personal credit score at the top of the list. Since fuel tax bonds are considered high-risk, sureties will usually examine an applicant very carefully.

Standard market rates for applicants with a very good credit score range between 1%-5% of the total amount of the bond. Those applicants with a slightly lower credit score may see rates between 4%-7.5%, and those that whose score is below 650 will usually see rates closer 15%.

Bryant Surety Bonds has strong relationships with several bonding companies, which gives us the power to get you the best rates possible. The bonding companies which we represent are all A-rated and T-listed, and are among the best in the whole industry.

On top of our standard market, we are able to offer high-risk applicants quotes on fuel tax bonds that can be among the lowest in the whole state.

For more information about the factors that determine bond cost, make sure to visit our surety bond cost page. It offers extensive information on how surety bond cost is calculated and how you can lower your premium over time. Have a look!

Bad Credit Fuel Tax Bond Program

If you do not qualify for the standard market because of your credit, you can still get bonded. Our Bad Credit Surety Bond Program allows those who may have been turned away by other companies to get bonded, and at a reasonable rate.

Because low credit applicants constitute a greater risk for sureties, and due to fuel tax bonds presenting an increased risk as well, rates under our bad credit program are somewhat higher. Applicants with bad credit can expect to receive quotes on their fuel tax bonds that are between 10%-20% of the total bond amount.

How much you will have to pay depends on your specific case, so make sure to fill in and submit a bond form in order to receive an exact, and free, quote on your bond.

How to Get Your Fuel Tax Bond

Getting a fuel tax bond takes only a few clicks. As a first step, apply online through our bond application tool. As soon as we receive and review your application we will respond to you with a free quote on your fuel tax bond. Review of your application may take longer than with most commercial bonds, as fuel tax bonds require lengthier assessment of applications.

Our surety bond experts are there for you to call at (866) 450-3412. If you have any questions or doubts about your surety bond, don’t hesitate to call us. We will gladly provide you with any additional information you may need, as well as assist you with your application or provide guidance.

Arizona

Bond: Arizona IFTA Bond

Obligee: Motor Vehicle Division: Motor Carrier and Tax Services PO Box 2100 Phoenix, AZ 85001-2100

Form: 96-0224

Amount: Set by Obligee

Colorado

Bond: Colorado Mileage and Fuel Tax Bond

Obligee: Colorado Department of Revenue: Taxpayer Service Division 1375 Sherman Street Denver, Colorado 80261

Form:

Amount: Set by Obligee

Delaware

Bond: Special Fuel Bond (Distillate/LP Gas)

Obligee: State of Delaware: Motor Fuel Tax Administration PO Drawer E Dover, Delaware 19903-1565

Form: SF-3 (User, Dealer, Supplier)

Amount: Set by Obligee

Georgia

Bond: Motor Fuel Distributors Bond

Obligee: Commissioner of Revenue, Georgia Department of Revenue

Form: FS-MFD-26

Amount: 3 Times the Monthly Tax Liability (not less than $1,000 nor more than $150,000)

Indiana

Bond: Indiana Special Fuel License Bond

Obligee: Indiana Department of Revenue

Form: SF-2 SF 46841

Amount: Set by Obligee

IRS

Bond: Taxable Fuel Bond Certification

Obligee: United States: Internal Revenue Service

Form:

Amount: Set by Obligee

Kentucky

Bond: Motor Fuel Tax Refund, Permit Holders Bond

Obligee: Commonwealth of Kentucky: Department of Revenue Motor Fuels Tax Compliance Section PO Box 1303 Frankfort, Kentucky 40602-1303

Form: 72A010

Amount: $1,000

Kentucky

Bond: Motor Fuels License Bond (Gasoline Dealer, Special Fuels Dealer, Liquefied Petroleum Gas Dealer, Motor Fuels Transporter)

Obligee: Commonwealth of Kentucky: Department of Revenue Motor Fuels Tax Compliance Section PO Box 1303 Frankfort, Kentucky 40602-1303

Form: 72A301

Amount: Set by Obligee ($500 Minimum)

Mississippi

Bond: Contractors Job Sales, use, Income, Franchise, Withholding, and Special Fuel (Diesel Fuel) Tax Bond

Obligee: State of Mississippi, State Tax Commission

Form: 72-441-01-1-1-000

Amount: Set by Obligee

New Jersey

Bond: New Jersey Distributor of Motor Fuels Tax Bond

Obligee: State of New Jersey, Division of Taxation PO Box 189 Trenton, NJ 08695-0189

Form: DMF-6

Amount: Set by Obligee

New York

Bond: Bond of Distributor of Automotive Fuel

Obligee: New York Department of Taxation and Finance

Form: AU-432

Amount: Set by Obligee

Pennsylvania

Bond: Liquid Fuels and Fuels Tax Bond

Obligee: Commonwealth of Pennsylvania, Department of Revenue Bureau of Motor Fuel Taxes PO Box 280646 Harrisburg, PA 17128-0646

Form: Rev 1559 MF(2-00)

Amount: $10,000

Tennessee

Bond: Petroleum Products and Alternative Fuels Bond

Obligee: Tennessee Department of Revenue, Commissioner of Revenue

Form: RV-F1302001

Amount: Set by Obligee

Texas

Bond: Texas Motor Fuels Tax Continuous Bond (Gasoline Tax, Diesel Fuel Tax)

Obligee: State of Texas: Comptroller of Public Accounts 111 E. 17th Street Austin, Texas 78774-0100

Form: AP-111

Amount: Set by Obligee


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.