What is a New Jersey Distributor of Motor Fuels Tax Bond?
Know the importance of this surety bond and how to easily get one ASAP!
It is a type of guarantee that is required of every distributor of motor fuels who pays the tax to a supplier in the State of New Jersey.
The surety bond’s purpose is to ensure that the purchaser or the distributor of motor fuel will fulfill his or her obligations in accordance with the New Jersey law. This includes, but not limited to, the following:
- Maintain a record of all fuel received, sold, or used
- Submit a report of the record of fuel received, sold, or used to the Director of the Division of Taxation in the Department of the Treasury before the 22nd of each month
- Pay the necessary tax imposed during the preceding calendar month
Failure to comply with the aforementioned rules, as well as with the rest of the relevant laws will be considered as a violation of the bond’s condition. When this happens, the Obligee will be able to obtain the amount lost by filing a claim against the bond.
This requirement is in accordance with the New Jersey Motor Fuel Tax Act.
What is the Distributor of Motor Fuels Tax Bond amount?
The bond amount will vary per Distributor of Motor Fuels. The bond amount will be based on 3 times the potential monthly tax payments for gasoline and diesel fuel.
If you have an excellent credit score, you will be eligible to pay for a low bond premium!
Want to get a tailored quote ASAP? Get your FREE SURETY BOND QUOTE HERE!
How can I get a Distributor of Motor Fuels Tax 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.
3. Your surety bond will be issued and sent to you!
What are the surety bond conditions?
- The Surety who will issue the bond should be New Jersey-authorized
- The bond should be made payable to the State of New Jersey
- The distributor of motor fuels should obey the provisions of the New Jersey Motor Fuel Tax Act, as well as the rules and regulations of the New Jersey Department of the Treasury
- If the distributor of motor fuels commits a valid violation, the aggrieved party will be eligible to file a bond claim