California Motor Vehicle Fuel Distributor Bond
Secure your license through this surety bond!
What is a California Motor Vehicle Fuel Distributor Bond?
It is a financial security required of every motor vehicle fuel distributor. This bond must be submitted to the California State Board of Equalization along with other license requirements as stated in the California Motor Vehicle Fuel License Tax Law.
A surety bond is a means to assure the California State Board of Equalization that the licensee will pay the taxes on time and in full. The payment of taxes is equivalent to three times the estimated average monthly tax liability of the licensee.
In the event that the licensee fails to pay these, the Obligee of the surety bond will be able to obtain the amount due including penalties and interest through a claim.
This requirement is in pursuance of Section 7486 of the California Revenue and Taxation Code.
How much does a California Motor Vehicle Fuel Distributor Bond cost?
The bond premium will typically range from 1.5% to 5% of the bond amount. This will be based on the motor vehicle fuel distributor’s credit score.
The California State Board of Equalization will determine the bond amount.
The bound amount will be three times the estimated average monthly tax liability of the motor vehicle fuel distributor. However, it will not be more than $1,000,000.
Once you have determined your bond amount, you can find out what your bond premium will be by claiming your FREE SURETY BOND QUOTE HERE!
How can I get a California Motor Vehicle Fuel Distributor Bond?
We’ve made it easier for you! Just follow the simple steps below!
STEP 1: Apply for this bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Assessment
We will ask you a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
You will be asked to sign an indemnity agreement once the underwriter is done with the prequalification process. After that, we will immediately issue the bond and send it to you!
How does a California Motor Vehicle Fuel Distributor Bond work?
A surety bond is a three-party agreement.
Principal – motor vehicle fuel distributor
Obligee – the State of California
Surety – surety bond company
This bond is for the protection of the Obligee in case the Principal fails to promptly pay the necessary taxes or violates any of the relevant provisions of the California Revenue and Taxation Code. If the Principal fails to do any of the bonded obligations, the Obligee can file a bond claim. The Surety will first investigate if the claim is valid before paying the Obligee. If the claim is valid, the Surety will pay the Obligee. The Principal must then reimburse the Surety for the payments made.
Get your bond ASAP! APPLY NOW!