What is an Alabama Taxable Fuel Bond?
Understand what this surety bond is for and how to obtain one!
An Alabama Taxable Fuel Bond is a way for the following license applicants and licensees to assure the Alabama Department of Revenue that they will pay the taxes due in full and on time:
- Supplier of taxable fuel
- Permissive Supplier of taxable fuel
- Terminal operator of taxable fuel
- Exporter of taxable fuel
- Blender of taxable fuel
- Importer of taxable fuel
- Distributor of taxable fuel
The different taxable fuel in Alabama are as follows:
- Diesel Fuel
- Aviation Gasoline
- Jet Fuel
- Lubricating Oil
- Wholesale Oil License
- Undyed Diesel
- Dyed Diesel
- Dyed Kerosene
What is the bond amount?
The amount varies. It will be based on twice the average monthly tax liability of the licensee.
|LICENSE TYPE||BOND AMOUNT|
|Supplier, Permissive Supplier, or Terminal Operator||$2,000,000|
|Exporter, Blender, Importer, or Distributor||$2,000|
If you have an excellent credit score, you may be eligible to pay a very low bond premium!
Find out you need to pay for this bond today! Get your FREE QUOTE HERE!
What are the Taxable Fuel Bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in Alabama
- The surety bond should be approved by the Alabama Commissioner of Insurance
- The licensee is obligated to comply with the provisions of Title 40 Chapter 17 of the Code of Alabama, the rules and regulations of the Alabama Department of Revenue, and all the other applicable rules
- If the licensee commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- If the applicant is applying for multiple licenses, he or she will only be required to post one surety bond unless the Alabama Commissioner of Insurance suggests otherwise
- The surety bond will remain valid until canceled. In case of cancellation, a 30-day notice is required
How can I obtain a Taxable Fuel Bond?
You can easily get this type of bond from us! Don’t worry. We will guide you through the whole process. We will make sure that you will understand what you will be getting into.
First, you need to submit an application.
If you are ready to do that now, you may APPLY HERE!
Once we have received your application, we will ask you to provide us with a couple of important information needed for the underwriting process. These will include the following:
- Your financial history
- Your tax payment history
- Your business history
- Your credit score
An underwriter will carefully evaluate all the information that you will give us. Once this process has been fulfilled, we will immediately issue the bond and send it to you!
Are you ready to start on your bond? APPLY HERE today!