What is an Oregon Taxable Fuel Bond?
Federal States’ primary sources of transportation funding come from excise taxes on gasoline and diesel. But because of the increase in the fuel economy and fuel tax rates that have not been tweaked with existing price increases, income produced by these taxes is increasingly inadequate. It is then imperative to have another source of revenue that could simultaneously preserve tax fuel users’ compliance with existing laws. This is where the Oregon Taxable Fuel Bond can help.
The Oregon Taxable Fuel Bond is an incontestable warranty demonstrating the willingness of taxable fuel users and registrants to conform to all tax obligations payable to the government about the activities of retailing, mixing, and distributing fuel. This serves as security that shields the State of Oregon and the community from fuel merchants and retailers who engage in fraudulent activities or conduct themselves in an unethical manner and try to renege from paying their taxes, charges, and fines.
Why do you need an Oregon Taxable Fuel Bond?
You need the Oregon Taxable Fuel Bond because your venture is critical 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 and 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 Oregon Taxable Fuel Bond
Before getting bonded, applicants must know that the amount of their bond will never be higher than the amount that is equal to their –
- Estimated tax obligation for a typical 6-month period
- Projected tax accountability of somebody other than the terminal operator during an average 1-month period (unique to terminal operators)
- The gasohol bond sum (specific to gasohol blenders)
Since a Taxable Fuel Bond is mandated by a federal agency, the surety company that writes 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. However, the surety company can revoke the bond at any time with the term by giving the Chief, Excise Tax Program of the Internal Revenue Service a written notice no less than 60 days before the anticipated termination date.
What is the cost of an Oregon Taxable Fuel Bond?
There is no pre-set amount for this bond and is highly reliant on the registrant’s financial capacity and potential and tax payments history. This means that the bond amount is specific to each applicant.
How do I get an Oregon Taxable Fuel Bond?
Getting an Oregon 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. Call them ASAP! An experienced surety professional can provide answers to your frequently asked questions.