What is Utah Taxable Fuel Bond?
Understand what this bond is for and how to obtain one!
A surety bond is required for license applicants or licensees as a distributor of motor fuel and aviation fuel or a supplier of special fuel in the State of Utah.
A surety bond is mandated by the Utah State Tax Commission by Title 59 Chapter 13 of the Utah Code. Its purpose is to ensure that the person will properly pay his or her taxes.
For licensees, the conditions for posting this type of bond are, but not limited to, the following:
- The license was revoked
- The licensee has a history of delinquent tax payment
What is the bond amount?
The amount varies. The bond amount will be computed by the Utah State Tax Commission based on the license applicant and licensee’s tax liability.
The minimum bond amount is $10,000 while the maximum bond amount is $500,000.
If you have an excellent credit score, you may be eligible to pay a very low bond premium or less than 1% of the total bond amount!
Find out you need to pay for this bond today! Get your FREE quote here!
What are the bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business in Utah and is duly certified by the Utah Department of Insurance such as Surety Bond Authority
- The surety bond should be made payable to the Utah State Tax Commission
- The license applicant or licensee should comply with the provisions of Title 59, Chapter 13, Part 2, 3 or 4 of the Utah Code, the rules and regulations of the Utah State Tax Commission, and all the other applicable rules that govern the distributor of motor fuel and aviation fuel, or a supplier of special fuel license applicants or licensees in the State of Utah
- If the licensee fails to pay all taxes, interest, and penalties due, and when demanded by the Commission, the Commission will be eligible to file a claim on the bond
- The bond will remain valid until canceled. In case of cancellation, a 30-day notice is required
How can I obtain a Taxable Fuel bond?
To secure this type of bond, the license applicant or licensee must seek the assistance of a surety bond company.
You will first be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so here.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your tax payment history
- Your credit score
Once the pre-qualification process is fulfilled, we will execute the bond and send it to you immediately!
Ready to apply? Start here!