North Carolina Taxable Fuel Bond
Get informed about the importance of this surety bond!
What is a Taxable Fuel Bond?
In pursuant to Section 105-449.72 of the North Carolina General Statutes, the following persons are obligated to obtain a Motor Fuels Tax Liability Bond before the issuance of a license:
- Refiner
- Terminal operator
- Supplier
- Importer
- Blender
- Permissive supplier
- Distributor
The surety bond binds the aforementioned persons to comply with the conditions of the bond which includes ensuring the prompt payment of the necessary taxes by the licensee.
If the registrant defaults on the tax payment, the Obligee of the surety bond will be able to recover the amount due by filing for a bond claim.
What is the Taxable Fuel Bond amount?
The bond amount will vary per license applicant. This will be determined by the Secretary of the Department of Revenue of the State of North Carolina
Distributor
The bond amount should be equal to twice the license applicant's average expected monthly tax liability.
$2,000 – minimum bond amount
$500,000 – maximum bond amount
Blender
If the license applicant's average expected annual tax liability is more than $2,000, the bond amount should be equal to twice the license applicant's average expected monthly tax liability.
$2,000 – minimum bond amount
$500,000 – maximum bond amount
Refiner, Terminal Operator, Supplier, Importer, Permissive Supplier
$2,000,000 – bond amount
If you have determined your bond amount, you may check your bond premium by getting your FREE QUOTE HERE from us!
How can I get a Taxable Fuel Bond?
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 that is authorized to conduct business in the State of North Carolina
- The surety bond should be made payable to the State of North Carolina
- The licensee is obligated to obey the provisions of Sections 105-449.60 until 105-449.126 of the North Carolina General Statutes as well as the rules and regulations of the Department of Revenue of the State of North Carolina
- If the licensee commits a valid violation, the aggrieved party will be eligible to file a claim against the surety bond
- The licensee may file an additional bond upon the request of the Secretary of Revenue