Motor fuels tax bond cost
If you supply, import, export, deal or blend gasoline or diesel fuel within Texas, you must be bonded. The required bond amount must be equal to 2 times the maximum amount of tax liability that could accrue during a reporting period or accrue on purchased tax-free gasoline. The minimum bond amount for gasoline and diesel fuel is $30,000 and the maximum amount is $600,000. If you handle dyed diesel fuel, the minimum bond amount is $10,000 and the maximum is $600,000. Bond amounts are determined by the Comptroller of Public Accounts, and applicants should verify their required bond amount prior to bonding.
Because the price and required amount of this bond can vary so much, the best way to find out exactly how much you’ll pay is to request your free bond quote now!
Why this bond
By posting a Texas motor fuels tax continuous bond, the principal (supplier, importer, exporter or blender) promises to comply with all state statutes pertaining to the motor fuel industry. Specifically, principals pledge to pay all taxes that become due to the state.
If the principal fails to comply with these terms, the bond protects the state from financial loss up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
Motor fuels tax continuous bond details
Motor fuels tax bonds in Texas remain in full force and effect until canceled. The bond remains continuous from the effective date and will be automatically extended from calendar year to calendar year.
Licensing requirements vary depending on the type of license being applied for (supplier, importer, exporter, dealer or blender). Any individual who is licensed as a sole owner, partnership, corporation or other organization under the Texas Motor Fuels Tax Law must submit a Texas Application for Fuels Tax License form.
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