What is a Louisiana Motor Fuel Tax Bond?

Know the how-to of this surety bond and why you need one!

Louisiana Motor Fuel Tax BondAny person who is applying for the following motor fuel licenses in the State of Louisiana must secure a surety bond as part of the license application requirements:

  • Distributor
  • Importer
  • Exporter
  • Blender
  • Interstate motor fuel user
  • Supplier or permissive supplier
  • Terminal operator

The surety bond will serve as a financial guarantee in case the licensee fails to pay the necessary taxes on time and in full. When this happens, the Louisiana Secretary of Revenue may file a claim against the surety bond to requite the overdue tax amount.

This prerequisite that is enforced by the Louisiana Department of Revenue complies with Section 47:818.40 of the Louisiana Revised Statutes.

 

What is the Motor Fuel Tax Bond amount?

The bond amount will depend on the type of license and the tax liability of the licensee.

$20,000 – the minimum bond amount for distributors, importers, exporters, blenders, and interstate motor fuel users. The bond amount will be based on the licensee’s tax liability for three months.

$50,000 – the minimum bond amount for suppliers or permissive suppliers. The bond amount will be based on the licensee’s tax liability for three months.

$1,000,000 – the minimum bond amount for terminal operators. The bond amount will be based on the licensee’s tax liability for three months.

If you have an excellent credit score, you will be eligible to pay for a low bond premium or as low as 1% of the bond amount!

Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!

 

How can I get a Motor Fuel Tax bond?

STEP 1: Apply for the bond

You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!

STEP 2: Underwriting

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

Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!

 

What are the surety bond conditions?

  • The surety bond should be issued by a surety bond company or agent that is recognized in the State of Louisiana
  • The bond should be made payable to the Louisiana Secretary of Revenue
  • The licensee should comply with the provisions of Title 47 of the Louisiana Revised Statutes, as well as the rules and regulations of the Louisiana Department of Revenue
  • If a violation is committed, the aggrieved party will be eligible to file a claim on the surety bond
  • For multiple licenses, the bond amount should be equal to the highest bond level
  • A terminal operator who is also a supplier should only post one bond

Ready to start on your bond? APPLY TODAY!

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