User of fuel bond cost
The California State Board of Equalization requires individuals who hold User Fuel Tax permits to post surety bonds in varying amounts prior to conducting business. Applicants should verify their required bond amount with the state prior to bonding.
Because the required amount of this bond and, therefore, the price of this bond can vary so much, our experts recommend submitting a bond request to connect with our team of expert surety specialists who will walk you through each step of our fast and easy bonding process.
Why this bond
Bonds of users of fuel in California are put in place to ensure that principals (fuel use professionals) comply with the provisions of Part 3 of Division 2 of the Revenue and Taxation Code and of Chapter 2 of Title 14 of Part 2 of the Code of Civil Procedure. Specifically, these bonds guarantee that principals pay all taxes that become due to the state according to regulations.
If the principal fails to comply with these terms, the bond protects the state from financial loss up to the full bond amount, and the principal must repay the surety for any sums paid out.
User of fuel bond details
Fuel user bonds in California remain in full force and effect and run concurrently with the principal’s permit period. The surety can cancel the bond in accordance with the provisions of Article 13 of Chapter 2 of Title 14 of Part 2 of the Code of Civil Procedure.
Become a fuel use professional
Typically, if you operate a motor vehicle (including equipment such as a forklift or tractor) that is powered by a use fuel and operated on a highway in California, you must obtain a User Use Fuel Tax Permit.
Permit registration can be completed online. More registration information can be accessed via the Important Links section of this page.Take the first step toward becoming registered in California by requesting your free quote on a fuel user bond now!
Apply for your User of Fuel Bond
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