What is a Colorado Taxable Fuel Bond?

Understand what this bond is for and how to obtain one!

Colorado Taxable Fuel BondNo person in the State of Colorado shall conduct business as a distributor, refiner, or terminal operator of gasoline or special fuel without first being licensed. To become licensed, the person or entity shall procure a surety bond.

The bond is mandated by the Colorado Department of Revenue Taxation Division, by Title 39 Article 27 of the Colorado Revised Statutes.

The gasoline and special fuel include the following:

  • Aviation fuel
  • Motor Fuel
  • Liquefied Petroleum Gas (LPG) or Natural Gas (NG)

 

What is the Taxable Fuel Bond amount?

The bond amount should be three times the monthly tax liability of the license applicant as estimated by the Executive Director of the Department of Revenue.

For gasoline and special fuel, the bond amount shouldn’t be less than $25,000, and not more than $200,000.

For Liquefied Petroleum Gas (LPG), the bond amount should not be more than $200,000.

If you currently have an excellent credit score, you may be eligible for a very low bond premium. Get your FREE quote here to determine what you need to pay today!

 

What are the bond conditions?

  • The bond should be issued by a surety bond company who is licensed to conduct such business in the state of Colorado
  • The license applicant should comply with all the provisions of Title 39 Article 27 of the Colorado Revised Statutes, as well as all the other applicable rules and regulations
  • The license applicant shall ensure proper payment of taxes and penalties
  • The Executive Director of the Department of Revenue may increase or decrease the bond amount
  • The Executive Director will demand an additional surety bond if the licensee uses a liquefied petroleum gas or acquires gasoline or special fuel other than liquefied petroleum gas in a quantity that will make him liable for excise tax payments
  • If a claim is made on the bond, and the bond amount is deemed insufficient, the Executive Director will require the license to procure a new surety bond
  • The bond will remain valid until canceled. In the case of cancellation, a 60-day notice is required.

 

How can I obtain a Taxable Fuel bond?

To secure this type of bond, you must first seek the assistance of a surety bond company such as Surety Bond Authority.

Once the application is received, one of our expert surety bond agents will guide you through the whole process from the time you applied until you submit the surety bond. We will make sure that you understand all the conditions before the bond is issued.

An underwriter will then evaluate your financial strength, job/business performance history, tax payment history, and your credit score.

Once the prequalification process is fulfilled, we will execute the bond and send it to you!

Need the bond as soon as possible? Call us today!

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