What is a Missouri Taxable Fuel Bond?
Persons who are applying for a license in the following categories are required by the Missouri Department of Revenue to submit a surety bond along with their application:
- Suppliers of gasoline, diesel fuel, kerosene, and blended fuel
- Terminal Operators of gasoline, diesel fuel, kerosene, and blended fuel
- Distributor of gasoline, diesel fuel, kerosene, and blended fuel
The surety bond will ensure that the aforementioned license applicants and licensees will pay the taxes due for the services that they are providing.
In the case of non-payment, the Missouri Department of Revenue will be able to collect the amount due from the surety bond.
The requirement complies with Sections 142.884, 142.890, and 142.896 of the Missouri Revised Statutes.
What is the Taxable Fuel Bond amount?
Suppliers – the bond amount should be equal to 3 months of potential tax liability based on the number of gallons handled. The minimum bond amount should be $100,000 while the maximum bond amount is $2,000,000.
Terminal Operator – the bond amount should be equal to 3 months of potential tax liability based on the number of gallons handled. The maximum bond amount is $100,000.
Distributor – the bond amount should be equal to 3 months of potential tax liability based on the number of gallons handled. The maximum bond amount is $150,000. Gasoline and diesel should have a separate bond amount.
Those who have excellent credit scores will be eligible to pay for a very low bond premium or just 1% of the bond’s amount!
If you want to find out what you need to pay, GET YOUR FREE QUOTE HERE today!
How can I get a Taxable Fuel Bond?
To secure this type of bond, the license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
What are the bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of Missouri
- The surety bond will be made payable to the Missouri Department of Revenue
- The licensee is obligated to comply with the provisions of Chapter 142 of the Missouri Revised Statutes, and the rules and regulations of the Missouri Department of Revenue
- If the licensee commits a violation, the aggrieved party will be eligible to file a claim on the surety bond
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