What is a Virginia Taxable Fuel Bond?
Know the who, what, and how of this surety bond today!
What is a Taxable Fuel Bond?
It is one of the requirements needed by the following persons to become licensed:
- Terminal operator
- Permissive supplier
- Aviation consumer
A surety bond will ensure that the aforementioned persons will comply with the Virginia Fuels Tax Act and other relevant rules when doing business within the Commonwealth that pertains to taxable fuel (gasoline, diesel fuel, blended fuel, and aviation fuel).
It will also be conditioned that the Obligee will be able to recover the amount lost if the licensee fails to promptly pay the necessary taxes.
This requirement is pursuant to Section 58.1-2211 of the Virginia Code.
What is the Taxable Fuel Bond amount?
- $2,000,000 – the bond amount for terminal operators, suppliers (a position holder or someone who receives motor fuel pursuant to a two-party exchange), bonded importers, or permissive suppliers
- The bond amount should be three times the average expected monthly tax liability of the following license applicants:
$2,000 – minimum bond amount
$300,000 – maximum bond amount
- Suppliers (a fuel alcohol provider but not a position holder or a person who receives motor fuel pursuant to a two-party exchange)
- Occasional importers
- Aviation consumers
- $300,000 – maximum bond amount for persons who are applying as a licensed distributor and as a bonded importer
If you know your bond amount now and would like to find out what your bond premium will be, you may get your FREE SURETY BOND QUOTE from us HERE!
Those who have excellent credit scores will be eligible for a very low bond premium, or just 1% of the bond amount!
How can I get a Taxable Fuel Bond?
STEP 1: Apply for the bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We will ask you for a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!
What are the surety bond conditions?
- The bond should be issued by a Virginia-authorized Surety
- The Commonwealth of Virginia should be named as the Obligee of the surety bond
- The licensed Terminal operator, Supplier, Importer, Blender, Permissive supplier, Distributor, or Aviation consumer must obey the provisions of the Fuels Tax Act as well as the rules and regulations of the Virginia Department of Motor Vehicles
- If the licensee commits a violation, the aggrieved party will be eligible to file a claim against the bond