Tax & Customs
Motor Fuel Tax Bond
A motor fuel tax bond guarantees that a fuel supplier, importer, distributor, or wholesaler will pay the state fuel taxes it collects or owes.
- Required by
- State revenue departments (Alabama and Florida Departments of Revenue)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state revenue department. It promises timely, accurate fuel tax reports and payment of all fuel taxes, penalties, and interest. If the licensee fails to pay, the state collects from the surety.
Who needs it
- Fuel terminal suppliers and importers
- Fuel distributors and wholesalers
- Fuel exporters and blenders
What the underwriter looks at
- Average monthly fuel tax liability
- License class
- Financial statements and tax history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How is the Florida bond figured?
Florida section 206.05 sets the bond at about three times the licensee's average monthly fuel tax over the prior 12 months, capped at $300,000. A time deposit or letter of credit may be used instead.
Do I need a bond in Alabama?
Alabama ties the bond to the motor fuel license class, and the Department of Revenue sets the amount. Confirm with its Motor Fuels Section before applying.