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What is a Fuel Tax Bond
A fuel tax bond is a type of Surety Bond that is necessary for anyone wanting to be get licensed and sell fuel. This specific bond ensure that taxes are paid on the fuel to the obligee. As a business owner who sells, distributes, or mixes fuel, a fuel tax bond is necessary to protect the state government as well as any clients who may purchase fuel from you and ensures that all required taxes are paid on time to the correct parties. Fuel tax bonds can also be referred to as International Fuel Tax Bonds or IFTA.
A claim can be made against your Fuel Tax Bond if:
- You fail to pay the appropriate taxes, on time. (Claim made by the state)
- You commit fraud or misrepresentation and therefore your clients are caused hinderance (Claim made by client)
Types of Fuel Tax Bonds include:
- ground transportation operations
- airline transportation operations
- marine transportation operations
FAQs About Fuel Tax Bonds
Who is required to have a Fuel Tax Bond?While running a business is hard enough, making sure you have the right insurance, bonds, and certifications to run your business is crucial. If you sell, mix, or use different types of fuel to run your business, you probably need a Fuel Tax Bond. You should get bonded by The Surety Place is you supply, deal, import, export, or mix gasoline.
What is the average cost of this bond?The size of your company and the state in which you run your business will effect the cost of your Fuel Tax Bond, as well as the type of fuel you are selling or utilizing. Usually the state will set the bond amount for you based on tax liability that could accrue over a specific period of time and will range between $10k - $600k, but you will only pay the premium of that amount.
Do all states require Fuel Tax Bonds?No, not all states require a Fuel Tax Bond but because legislation in each state changes so often and new laws are passed, it is important to contact your local surety to see what bonds are required of you based on the state you live in. Surety Place is always up-to-date on the ever changing bond requirements in ALL 50 states, so make sure to give us a call first!
Will my credit affect my premium?As with all bonds, your credit, bond history, and business financials will all play a role in the amount you have to pay in order to obtain the Fuel Tax Bond. The great thing about our surety business is that we have specialty programs to help with hard to place bonds to ensure that you get the bond you need in order to continue running your business.
Contact us today for your bond!
Your National Surety With A Local Feel
The Surety Place has over 40 years of combined experience in this industry, which means we know bonds and we know them well. When it comes to Fuel Tax Bonds, we are the providers to get you the bond you need, as quickly as possible, and even better, we do all of the hard work for you. We provide the white glove experience in an industry that can be brutal and overwhelming at times for business owners like yourself.
Any Bond, Any State
While other bond companies focus on their state bonds or regional bonds, we have expanded our knowledge and capabilities to ALL 50 states. We want to be able to help you get whatever bond you need, in any state and any industry. Whether you are just starting out or you have been in the game for quite some time, The Surety Place can be your surety bond company for the life of your business and each year when your bond needs to be renewed, or the laws change, we take care of everything for you. Our main concern for our clients is knowing that all they have to do is worry about running the business, we take care of the nitty gritty bond work for you!
Your Bond Needs Are Always Heard
We establish a relationship with you in order to truly understand your business focus whether large or small, complicated or difficult. As one of the only true specialists within the industry we supply access, partnerships and specialty programs with numerous “A” rated sureties across the nation. We are here to help you service all your bonding needs with no appointments or contracts necessary. Fuel tax bonds are crucial for certain business owners, which is why we ask that you trust in us to do the hard work for you, get you the bonds required of you to run your business successfully.
Because of our industry knowledge and expertise coupled with our ever increasing specialty programs, we have the unique ability to write your bonds when no one else can, and because of our relationship with you we will stand behind you in support to achieve your agency or business objectives.
Need help growing your bond department?
At The Surety Place, we pride ourselves in our customer service! If you have any questions regarding your Alcohol tax bond placement, give us a call.