Fuel Tax Bond

Generally, a fuel tax bond is mostly needed by sellers of fuel. In some instances this includes suppliers, importers, exporters and distributors of fuel.
Whether or not you need a fuel tax bond depends on the type of business you own, as well as your state’s regulations. The best way to find out is to inquire with the relevant institutions, such as your Department of Revenue or Finance.
Alternatively, find your bond on the table below, listing all fuel tax bonds that we can underwrite.

There can be different types of fuel tax bonds, depending on the state where you’re getting licensed. A fuel tax bond can sometimes be called a motor fuels tax bond, a mileage & fuel tax bond, a fuel distributor or fuel supplier bond, an IFTA (International Fuel Tax Agreement) bond and others.

All of the above are types of fuel tax bonds, and their designations vary from state to state. Some states have a number of different types of fuel tax bonds, depending on whether you are a supplier, seller, or something else.

The cost of your fuel tax bond is a fraction of your fuel tax bond’s total amount. The total amount of your bond can vary, and is determined by state institutions, such as your Comptroller of Public Accounts or Department of Revenue.

For example, fuel tax bonds in Texas vary depending on whether you will be selling gasoline and diesel fuel, or dyed diesel fuel. For the former, bond amounts vary between $30,000 and $600,000, and for the latter between $10,000 and $600,000.

Depending on the amount which is determined for your bond, your surety will offer you a rate at which you can obtain the bond. This rate, or premium, is a percentage of the bond amount, and is based on the surety’s assessment of your financial stability. In assessing you, the surety will usually consider several factors– primarily your personal credit score, as well as your financial statements and your business history.

For bond amounts below $50,000, the owner’s personal credit score is the most important factor. If you have a high credit score you can expect your surety to offer you a rate of 1%-5% on your bond. Applicants with lower credit scores can expects rates between 5%-10%, and those with substantial liens or other past due items will probably see slightly higher rates. Keep in mind that larger bonds (greater than $50,000) will likely require business financial statements and other supporting documentation in order to underwrite.

If you want to know exactly how much you will need to pay for your fuel tax bond, apply for your bond by submitting your application. Once we process your application, we will contact you with your no-obligations quote, which is entirely free.

If you don’t qualify for any of the above rates, due to a low or nonexistent credit score, it’s still possible for you to get bonded. Typically, bad credit applicants have a hard time getting bonded because of the increased risk they present, and the unwillingness of sureties to underwrite their bonds.

Fortunately, through our Bad Credit Surety Bonds program, most applicants can still get bonded, even for riskier financial guarantee bonds, such as fuel tax bonds. The cost for a fuel tax bond under this program is higher, yet applicants can still expect us to find the lowest possible rate we can.

At Lance Surety Bonds we are dedicated to serving all our customers equally and always try to find the best rates for them. Furthermore, all surety bonds which we offer are backed only by A-rated and T-listed companies, making them the best that you can get.

To get your fuel tax bond, apply online by submitting your surety bond application form. Approvals and processing for fuel tax bonds is usually fast, though due to the nature of these bonds it may take slightly longer than for most license bonds.

You can always contact us at (877)-514-5146 if you have any questions or are in need of help. Our surety experts know all about bonding requirements for fuel tax bonds, and can help you out with additional information or guidance during the application process. Don’t hesitate to call!