What are fuel tax bonds
A fuel tax bond is a form of insurance that fuel sellers purchase that guarantees their payment of state taxes on fuel. Because these are high-risk bonds, the rates can differ among agencies. The bond protects against any illegal or unethical actions by fuel sellers.
A fuel tax bond guarantees that all fuel sellers operating within a state will pay the state government all required taxes, penalties, and any interest owed. A fuel tax bond is required to be posted for all fuelowners as long as their license is active.
A Fuel Tax Bond is a type of surety bond that fuel sellers need in order to get licensed. Thebond guarantees payment of taxes on fuel. Unlike insurance, which protects the insured, a surety bondprotects the state and your clients.