Things You Should Know about Fuel Tax Bonds

Buying a Fuel Tax Bond is mandatory for a gasoline supplier or seller. Any person can obtain a license to distribute fuel but only after they acquire this bond. This bond acts as an assurance that the bondholder will not deflect from paying taxes on fuel.

Fuel tax safeguards the interests of the state as well as of your customers. If you ever neglect to pay taxes while you are distributing gasoline, the state has every right to file a claim against the purchased bond. Similarly, if customers feel defrauded or misrepresented, they too have the right to file a claim against the purchased fuel tax bond.

Any business looking to get licensed to sell, distribute, or import fuel should purchase Fuel Tax Bonds. Forty-eight states have made it mandatory. Like with any bond, read the guidelines from your state before purchasing.

Once you know what your state requires, you’ll want to apply for a Fuel Tax Bond. A surety agency can provide you with options. Some agencies will let you buy Fuel Tax Bonds online.

Be mindful of the fact that surety agencies consider these bonds highly risky. The agency may ask you to provide an income statement along with the application.

If you wish to buy Fuel Tax Bonds online, reach out to us at Suretegrity.