Fuel Tax Bond

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.

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.

Popular Fuel Tax Bonds

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 us:

Bryant Surety Bonds

Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.