Transportation
Highway Use Tax Bond
A highway use tax bond guarantees that a trucking company will pay a state's weight-distance or highway use tax.
- Required by
- State tax departments in states with a highway use tax, such as New York
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state tax department. It secures payment of the carrier's highway use tax, penalties, and interest. If the carrier does not pay, the state collects from the surety.
Who needs it
- Motor carriers running heavy trucks in states with a highway use or weight-distance tax
- Carriers the state has flagged for late filing or payment
- New carriers registering for these taxes
What the underwriter looks at
- Expected tax liability
- Filing and payment history
- Carrier's credit
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 much bond does New York require?
New York Tax Law 509 lets the state require a bond in an amount it fixes, reasonably related to the carrier's probable tax liability. There is no fixed figure.
Is this the federal heavy vehicle use tax?
No. The federal HVUT is paid to the IRS on Form 2290. This bond is for state taxes.