What is an Arkansas Taxable Fuel Bond?
Know the importance of this surety bond and how to easily get one!
To put it simply, this surety bond is required of all taxable fuel distributors in Arkansas as a guarantee of on-time payment of taxes.
If in any case, the licensed distributor fails to pay the necessary taxes, the Obligee of the surety bond or the person who has suffered damages due to non-payment of taxes will be justly compensated through the bond.
A distributor is a person who is engaged in the wholesale business of motor fuel and is reselling the said fuel to dealers, consumers, or in tanks of 200 gallons or more. A distributor is also an exporter, importer, producer, refiner, distiller, and manufacturer of taxable fuels within Arkansas.
The surety bond prerequisite is in compliance with Section 26-55-222 of the Arkansas Code.
What is the Taxable Fuel Bond amount?
The bond amount varies and will be determined by the Director of the Department of Finance and Administration. However, the minimum bond amount should not be less than $1000.
License Distributors Bond Amount – Should not be less than 1 ½ times or 150% of the previous 6 months’ average motor fuel tax due.
License Applicants Bond Amount – Will be based on the gallonage of motor fuel to be sold
If you have an excellent credit score, you will be eligible to pay for a low bond premium!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Taxable Fuel Bond?
To secure this type of bond, the licensee or license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your business performance history
- Your tax payment history
- Your credit score
Once the pre-qualification process is fulfilled, we will execute the bond and send it to you!
What are the bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of Mississippi
- The licensed distributor is obligated to comply with the provisions of Section 26-55 of the Arkansas Code, the rules and regulations of the Arkansas Department of Finance and Administration, and all the other applicable rules
- If the licensed distributor fails to pay the due taxes on time and in full or violate any of the provisions and rules, the aggrieved party will be eligible to file a claim on the surety bond
If you’re ready to apply for this bond, you may start the process HERE!