What is a Washington Taxable Fuel Bond?
Get to know what this bond is for and how to apply for one easily!
There are two types of Fuel Tax Bonds in the State of Washington:
- Motor and Special Fuel Tax Bond
- Aircraft Fuel Tax Bond
Suppliers, blenders, and distributors of the following fuels who are applying for a license are required to post a surety bond:
- Motor Vehicle Fuel – gasoline or other inflammable gas or liquid.
- Special Fuel – diesel fuel, kerosene, propane, biodiesel, natural gas, and any other combustible liquid or gas. Special fuel also includes Dyed Diesel.
- Aircraft Fuel – gasoline or any liquid used in aircraft.
The purpose of this bond is to ensure that the licensees will pay their taxes on time and in the right amount.
This requirement complies with Chapter 82.38.110 of the Revised Code of Washington or the Motor Vehicle and Special Fuel Tax Law and Chapter 82.42.040 of the Revised Code of Washington or the Aircraft Fuel Tax Law.
What are the bond amounts?
Motor and Special Fuel Tax Bond – the bond amount should be three times the estimated monthly fuel tax liability. The bond amount should not be less than $5,000 or more than $100,000.
Aircraft Fuel Tax Bond – the bond amount should be three times the estimated monthly fuel tax liability. The bond amount should not be less than $5,000 or more than $100,000.
Those who have excellent credit scores may qualify for a very low bond premium or 1% of the bond amount!
Find out what needs to pay by getting your FREE quote here!
What are the bond conditions?
- The surety bond company should be authorized to do business in the State of Washington such as Surety Bond Authority
- The licensee or license applicant is obligated to pay the taxes due correctly
- The licensee or license applicant is obligated to comply with all the provisions of the Motor Vehicle and Special Fuel Tax Law, as well as the Aircraft Fuel Tax, and all the other applicable rules and regulations
- In case of cancellation, a 45-day notice is required
How can I acquire a Washington Taxable Fuel Bond?
To secure this type of bond, you must seek the assistance of a surety bond company such as Surety Bond Authority.
First, you need to submit a bond application.
Once the application has been received, one of our expert surety bond agents will guide you through the whole process – from application until submission. We will make sure that you understand all the conditions before the bond is issued.
An underwriter will then evaluate the following:
- Your financial strength
- Your job performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Are you ready to get bonded? Call us today!