Motor fuel excise tax bond cost
The West Virginia State Tax Department’s Internal Auditing Division – Excise Tax Unit requires motor fuel suppliers, importers, distributors, blenders and exporters to post surety bonds. The required bond amount must be equal to 3 times the applicant’s tax liability. If the applicant imports motor fuel from a state in which the seller is required to collect a fuel excise tax at the state’s rate, the bond amount required must be between $2,000 and $300,000. If the applicant is an importer who imports motor fuel from a state that is not required to collect a fuel tax at the state’s rate, he or she must post a bond in an amount between $100,000 and $2,000,000. Applicants should verify their required bond amount with the state prior to bonding.
These bonds are subject to underwriting, so the price you’ll pay depends not only on your required amount of bond coverage but also on a review of your personal credit report. Because so many factors contribute to the price of this bond, we suggest submitting a bond request so that our experts can provide you with a personalized bonding experience.
Why this bond
By posting a West Virginia motor fuel excise tax bond, principals (motor fuel professionals) pledge to comply with provisions of Chapter 11, Article 14C of the Code of West Virginia. Specifically, the bond guarantees that principals will account for and pay all motor fuel taxes and penalties due to the state.If the principal fails to comply with these terms, the bond protects the state from resulting financial losses.
Motor fuel excise tax bonds in West Virginia remain in full force and effect until violated or canceled. The surety can cancel the bond by giving written notice of cancellation via registered mail to the principal and the state.
Cancellation becomes effective 60 days after the notice is postmarked. An annual renewal notice is not required.The license type of the applicant (supplier, permissive supplier, terminal supplier, importer, distributor, blender or exporter) must be indicated on the bond form.
Get a motor fuel excise tax bond
To become a licensed motor fuel supplier, importer, distributor, blender or exporter in West Virginia, applicants must provide the following:
- legal business or corporation name
- trade name or DBA
- federal certificate of registry number
- physical/mailing addresses of the business
- license type
- business type
- types of products
- and more
Apply for your surety bond
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