Massachusetts Taxable Fuel Bond
Get informed about the importance of this surety bond!
What is a Taxable Fuel Bond?
All persons who are applying for a license as a jet fuel supplier are required to furnish a surety bond to the Massachusetts Department of Revenue.
The purpose of the surety bond is to ensure that the licensee will promptly pay the necessary taxes due including penalties and other charges.
If the licensee defaults on his or her tax obligations, the Obligee of the surety bond will file a bond claim to recover the necessary amount.
This requirement is in line with 830 64J.4.1 of the Code of Massachusetts Regulations.
What is the Taxable Fuel Bond amount?
The bond amount will vary per license applicant or license renewal. The bond amount should be equal to three times the average monthly tax liability of the jet fuel supplier. However, the bond amount will not be less than $10,000.
Initial Bond Amount for a Jet Supplier:
The bond amount can be determined by computing the average monthly tax liability based on the liability during the most current three-month period before the license applicant files for a license application.
The license applicant must then multiply the average monthly tax liability by three. The sum will be the initial bond amount.
If you know your bond amount now and would like to find out what your bond premium will be, you may get your FREE SURETY BOND QUOTE from us HERE!
Those who have excellent credit scores will be eligible for a very low bond premium, or just 1% of the bond amount!
How can I get a Taxable Fuel Bond?
You can easily get this surety bond from us! We will guide you through the entire process.
Here’s how to do get bonded:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety company that is authorized to conduct business in the Commonwealth of Massachusetts
- The licensee should obey the provisions of 830 64J.4.1 Code of Massachusetts Regulations as well as the rules and regulations of the Massachusetts Department of Revenue
- If the registrant commits a violation, the Obligee will be eligible to file a claim against the surety bond