Surety Bond Education

Motor Fuel Tax Bond

In many states there is a requirement that the suppliers or permissive suppliers of motor fuels must collect taxes.  In the state of Texas, the Comptroller of Public Accounts requires that the suppliers, permission suppliers, distributors, exporters, importers and blenders of fuel to collect and remit tax.  Sometimes a surety bond or other security must be provided.  The bond guarantees the payment of all tax liability, penalties, interest and other costs.

How Do I Obtain A Motor Fuel Tax Bond?

The requirements for a Motor Fuel Tax Bond vary from state to state.  However, it is common for the following to be required:

  • An application that includes personal and business indemnity
  • Clean personal credit
  • Business and personal financial statements

We can help make the process as easy as possible and find a surety that best matches your needs.

How Much Does It Cost?

So you’ve been approved for a Motor Fuel Tax Bond now how much does it cost?  The premium will be based on the amount of the bond.  And the amount of the bond typically is a function of the amount of tax the supplier collects.  In the state of Texas, it is common to see the bond amount as two times the the maximum amount that might be collected during a reporting period.   The premium is generally 0.5% to 2% of the amount of the bond.  The terms of the bond vary from state to state thus the premium rate will change too.  Additionally, the more financially qualified and the better credit that you have, the less premium you will pay.  The minimum premium is $100.

Where Do I Start?

The best place to start is by submitting an online application so we can get started working to find you a solution.  Or you may email us at eric@schmalzsurety.com or call us at 512-640-6444.  We are happy to help assist with any questions that you may have along the way.  We are surety professionals and want to help make securing your surety bond as easy as possibe.

Internal Resources:

What Is An Indemnity Agreement?

External Resources:

State of Texas Motor Fuel Tax Bond Form

State of Texas Motor Fuel Taxes

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