Fuel moves the economy — the tax on it has to move too.
Security for motor-fuel excise tax
Fuel tax bonds guarantee payment of motor-fuel excise taxes, penalties, and interest by the businesses that handle fuel — suppliers, distributors, importers, exporters, blenders — and by interstate motor carriers under IFTA. They protect state (and interstate) fuel-tax revenue.
Two contexts: distributor bonds and IFTA bonds
There are two related but distinct situations. In-state motor-fuel distributor or supplier bonds are required by the state Department of Revenue for businesses that handle fuel. IFTA bonds apply to interstate motor carriers: the International Fuel Tax Agreement lets a carrier file one consolidated fuel-tax return with its base jurisdiction, and that base state may require a bond — generally only when a licensee is new, high-risk, or has been delinquent, not of every IFTA licensee.
How the amount is set
The amount is usually a multiple of estimated monthly or quarterly fuel-tax liability (often about twice the average per-period liability), set by the taxing authority, so it scales with the gallons you handle. The bond covers tax, penalties, and interest — not damages to third parties — and is separate from federal IRS excise-tax registration requirements.
Fuel Tax Bond requirements by state
The required amount and authority differ by state — and sometimes by city or county. We are licensed in all 50 states; request a quote and we will confirm the exact requirement that applies to you.
Frequently Asked Questions
Who needs a fuel tax bond?
Fuel suppliers, distributors, importers, exporters, and blenders (via the state Department of Revenue), and interstate motor carriers under IFTA — though IFTA bonds are generally required only for new, high-risk, or delinquent licensees.
How is the amount calculated?
Usually as a multiple of your estimated monthly or quarterly fuel-tax liability (often about 2x the average per period), so it scales with the volume of fuel you handle.
What does a fuel tax bond cover?
Payment of motor-fuel excise tax, plus penalties and interest. It doesn’t cover damages to third parties, and it’s separate from federal IRS excise-tax registration requirements.
How do I get a fuel tax bond through Cory Washington & Co.?
Request a quote or contact our team. We confirm your exact requirement, market your bond across multiple surety companies that compete for it, and handle the filing. Cory Washington & Co. LLC is licensed in all 50 states.
All surety bond descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or bonding advice. Surety bonds are not insurance. Bond requirements — including amounts, obligees, and bond forms — are set by government authorities and other obligees and change over time; the information presented is general in nature and does not guarantee the availability, terms, conditions, or amount of any bond. Actual bond terms are governed by the bond form issued by the surety and the requirements of the obligee, and any bond remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds a surety, or issues a bond. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please confirm current requirements with the relevant authority and consult directly with a licensed professional at Cory Washington & Co. LLC.