Who needs Motor Fuel Tax And Distributor Bonds?

A Motor Fuel Tax and Distributor Bond, sometimes called a fuel tax bond, motor fuels tax bond, fuel distributor bond, or IFTA bond, is commonly required for businesses that sell, distribute, supply, import, export, or in some cases use certain types of motor fuel. State agencies and federal tax authorities may require this bond as part of registration or licensing to help ensure fuel taxes are properly reported and paid.

How much do Motor Fuel Tax And Distributor Bonds cost?

The price you pay is a premium based on a percentage of the required bond amount. Premium rates commonly fall in the 1% to 5% range, and many applicants see rates around 1% to 4%, depending on the underwriting review.

Your rate is typically based on factors like credit score, overall financial stability, tax history, and expected fuel tax liability. Stronger credit and financials usually lead to lower rates, while higher risk factors can increase the cost.

How do I get a Motor Fuel Tax And Distributor Bond?

To get a fuel tax bond, you apply through a surety provider and submit basic business and personal information for review. The surety will evaluate items such as credit, financial strength, and relevant experience, then provide a quote based on the bond amount required and the rate you qualify for.

Once you accept the quote and pay the premium, the bond is issued so you can file it with the agency that requires it as part of your licensing or registration process.

Can I get a Motor Fuel Tax And Distributor Bond with bad credit?

Yes, bad credit does not automatically prevent you from getting a fuel tax bond. Applicants with lower credit scores may pay a higher rate because the surety views the bond as higher risk, but many businesses can still qualify.

How fast can I get Motor Fuel Tax And Distributor Bonds?

Timing depends on how quickly the application can be reviewed and whether additional information is needed. Many fuel tax bond requests can move forward quickly once the required details are provided, but applications that require more underwriting review may take longer.

If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.