What is a North Dakota Taxable Fuel Bond?
Following the crude oil being refined into gasoline and other petroleum products, it goes to end-users. The bulk of the gasoline is transported first by a pipeline to storage terminals in close proximity to areas where the consuming public is located. After which, it is loaded into trucks to individual gas stations.
Gasoline and other products are conveyed through shared pipelines in batches. Since the products are not physically separated in the pipelines, some “assimilation” or “mixing” of the products take place.
This is the reason why gasoline and other petroleum products are tested as they penetrate and leave the pipelines to ensure that these meet suitable specifications. Whenever a product fails to meet local, state or federal requirements, it shall be taken out and transmitted back to a production plant for further processing. An instance a merchant or dealer still distribute fuel that is not within the required specification, a claim can be made against the Taxable Fuel Bond.
The North Dakota Taxable Fuel Bond is a definite and clear-cut guarantee demonstrating taxable fuel dealers’ and merchants’ readiness to conform to all tax obligations due to the government in relation to the activities of retailing, mixing, and distributing fuel.
This likewise serves as security that shields the State of North Dakota from fuel merchants and retailers who engage in deceitful activities or conduct themselves in a disreputable manner and renege from paying their taxes, charges, and fines.
Why do you need a North Dakota Taxable Fuel Bond?
You need the North Dakota Taxable Fuel Bond because your venture is very important to you and you consider your trade as central to the economy. The bond can serve as an excellent marketing tool for you to stand out among your peers within the industry.
With this bond, your clients and other stakeholders will look at you as an entrepreneur of dependability, someone who can be trusted, and a true professional.
More details about the North Dakota Taxable Fuel Bond
Since a North Dakota Taxable Fuel Bond is mandated by a federal agency, the surety company that underwrites the bond must be an authorized company found on the list of the Department of Treasury Circular 570. Once the bond has been issued, it will remain enforceable and needs to be renewed every year provided that the registrant still wants to continue operations.
How much does a North Dakota Taxable Fuel Bond cost?
The North Dakota Taxable Fuel Bond’s total amount:
- shall be established by the commission and shall correspond to at least twice the projected normal tax accountability for a reporting period;
- may be increased or lessened by the commission at whatever time.
- will be waived if the commission is satisfied that the distributor has the financial capacity to meet the mandated amount;
- shall be a continuing instrument and shall cover the period unless discharged by the commission.
There is no pre-set amount for the bond’s premium and is highly reliant on the registrant’s financial capacity, potential income, and tax payments history. This means that the bond amount is specific to each applicant.
How do I get a North Dakota Taxable Fuel Bond?
Getting a North Dakota Taxable Fuel Bond is effortless. Choose a reliable surety company that you know can serve your specific needs, can address your concerns without delay, and can respond to whatever challenges you will encounter in the process. Give them a call NOW!