What is a California User of Fuel Bond?
Businesses that operate vehicles that run on use fuel, more commonly known as diesel fuel, are required to register with the California State Board of Equalization. Part of the registration process is to purchase a surety bond to ensure the payment of all relevant taxes.
Who Needs a California User of Fuel Bond?
The California State Board of Equalization requires businesses and individuals that operate use-fuel powered machinery and vehicles to hold a User Use Fuel Tax Permit before conducting business. To receive that permitting and to maintain it, the fuel use professional must first obtain a surety bond.
Why Do I Need a California User of Fuel Bond?
User of fuel bonds is in place to ensure that the fuel use professionals comply with the Revenue and Taxation Code (Part 3, Division 2) and the Code of Civil Procedure (Chapter 2, Title 14, Part 2). Specifically, these surety bonds guarantee that the company or individual will pay all relevant taxes according to regulations.
If the principal violates these laws or the terms of the surety agreement, the government and any harmed agencies able to make a claim against the user of fuel bond to collect the tax payments. Once finalized, the principal is responsible for reimbursing the surety for any damages paid or associated legal costs.
How Much Does a California User of Fuel Bond Cost?
The California State Board of Equalization requires surety bonds before conducting business in California, but the required amount of the surety bond varies depending on the applicant’s specific circumstances. As the amount of the bond varies so significantly and the bond may be subject to underwriting, the best way to understand the cost of your California user of fuel bond is to request a quote.
Get Started Today!
To obtain a User Use Fuel Tax Permit, you must first purchase a California user of fuel bond. Don’t delay your application.