Motor fuels tax bond cost
New Jersey motor fuels tax bond amounts vary and are determined by the Division of Taxation in the Department of the Treasury. Amounts are typically based on three times the potential monthly tax payments for gasoline and diesel fuel separately. Bond amounts that exceed $10,000 are subject to underwriting. The premium an applicant pays is based on a review of his or her credit report.
Why this bond
New Jersey fuel tax bonds make certain the principal (distributor) faithfully performs all duties and complies with all requirements stated in N.J.S.A 54:39-101 (Motor Fuel Tax Act). Under this bond, all fuel dealers must:
- Keep records of all fuel sold, received or used for a period of 4 years
- Send a report to the Director of the Division of Taxation stating the number of fuel gallons sold before the 22nd day of each month
- Pay tax rates before the 22nd of each month
Motor fuels tax bond details
The aggregate sum of the bond must be paid to the State if the bond is voided. Each distributor’s bond amount must be 3 times the estimated tax liability of gallons handled per month.
Become a motor fuel distributor
All distributors must apply to the Director of the Division of Taxation for a license prior to engaging in business. An applicant must submit the following to the Director:
- License application
- $150 license fee
- Surety bond in the correct amount
Licenses are valid for 3 years. Licenses become active on April 1 and expire on March 31 of the 3rd year.
Apply for your surety bond
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