What is a Pennsylvania Liquid Fuels and Fuels Tax Bond?
Liquid fuels distributors and dealers in Pennsylvania must purchase a surety bond as part of the liquid fuels permit or fuels permit requirements for each place of business.
The Liquid Fuels and Fuels Tax Bond ensures faithful compliance with the lawful invoicing, billing, and delivery of liquid fuels or fuels free of tax from one distributor to another. The bond is also financial security to guarantee full and timely payments of all necessary taxes, penalties, and interests owed to the state.
Liquid fuels mean products that are derived from natural gas, petroleum, coal, coal tar, vegetable ferments, and other oils.
This includes liquid fuels, either alone or when blended or compounded, that are commercially suitable for use in internal combustion engines:
Note: Liquid fuels do not include kerosene, fuel oil, gas oil, diesel fuel, or tractor fuel.
What is the bond amount?
The bond amount is at least $2,500.
Your bond premium will depend on your credit score. Those who have excellent credit scores will have a low bond premium or just 1% of the bond amount!
How do I obtain a Liquid Fuels and Fuels Tax Bond?
Get your surety bond easily from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.
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 credit score
- Your copy of the BOND FORM, which can be obtained from the Pennsylvania Department of Revenue.
An expert underwriter will carefully evaluate these 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 bond conditions?
- The bond must be issued by a Surety authorized to do business in the Commonwealth of Pennsylvania.
- The bond must state that the Principal (distributor) will faithfully comply with the provisions of Chapter 90 of the Title 75, Liquid Fuels and Fuels Tax during the effective period of his or her permit.
- The Pennsylvania Department of Revenue may waive the bond regarding the retail sales of kerosene sold for private household use.
- The Department may also waive the bond relating to a class of distributors if it finds that the cost of bonding to that class is excessive when compared to the risk of loss to the Commonwealth.
- The Surety may cancel the bond upon giving 60 days’ written intent to the Department.
* Permits issued may be renewed annually, before June 1, upon filing an application to the Department. No permit will be renewed until the applicant files a new surety bond in an amount determined by the Department.
For more information on your Liquid Fuels and Fuels Tax Bond, please feel free to contact us today!