fuel tax bonds

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.

Fuel Tax Bond Definition, Rates, Uses, and More –

Fuel Tax Bond

Fuel Tax Bond |


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.

What Is A Fuel Tax Bond? – Surety Bond Blog | Surety Solutions


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.

Motor Gas Registration

Alabama Gasoline Tax Bonds are required by the Alabama Division of Pure Resources License Division. The required bond quantity is ready by the Obligee. The price paid for this surety bond relies on a credit report. Effectively qualified applicants with sturdy financial credentials could qualify to pay as low as 1% of the required bond amount. If you’re able to learn how much a Gas Tax Bonds costs then fill out our free quote type now! The amendment additionally dedicates all the income from the tax on gross receipts of the sale of petroleum merchandise to the Transportation Belief Fund. The current minimal dedication is $200 million per yr. This fiscal 12 months, the revenue from the tax on gross receipts of the sale of petroleum products is estimated to be $215 million.

For example, the amount of a fuel tax bond in Texas can vary between the minimal sum of $30,000 and the utmost of $600,000. If not fixed on a state degree, the precise quantity of the bond is determined on a case-by-case foundation by your state agency. Faculties may be eligible for a refund in the event that they meet two criteria. 1) The vehicles have to be designed to hold greater than ten passengers. 2) The car is used for the aim of transportation of scholars or school personnel to or from school or school related actions.

Email Us You can email us with any questions or with a proof of what you’re looking for. Be sure you embody contact info so one of our specialists can get back to you through your preferred technique of communication. being bonded and insured – some corporations are each boned and insured. In these instances, the bond protects in opposition to a specific job or job, whereas insurance coverage spreads threat across a pool of similarly situated firms.

People who promote special gasoline on the retail level (at the pump) solely have to be licensed if additionally they meet distributor necessities. surety bond service – a great surety bond service is one that can present a bond that meets your explicit needs. So, what it’s worthwhile to search for in a surety bond service is one that provides all kinds of offerings by way of a wide range of sureties.

All refund purposes should embrace documentation that MA fuels excise was paid. Claims with insufficient supporting documentation and claims primarily based on out-of-state purchases shall be denied. Kelly said new gas-tax income couldn’t be diverted to repaying earlier bonds. However until the high quality print of the governor’s proposal has been completely vetted for loopholes permitting new artistic diversions, it is not possible to embrace.

The material on this site might not be reproduced, distributed, transmitted, cached or in any other case used, besides with the prior written permission of Oregon Reside LLC. There are exempt uses of motor fuel. If a person purchases motor fuel, pays the MA fuels excise after which makes use of that fuel on the Massachusetts Turnpike or for off-highway functions (akin to in off-highway equipment or in water craft), that particular person could apply for a refund of MA fuels excise.