Fuel Tax Bonds
Fuel tax bonds are just like all other surety bonds in that they protect investments. Those who are involved with fuel retailing as a seller, mixer,or distributor must secure this bond to get started. Fuel tax bonds help to reassure investors that their money will be protected. It also ensures guaranteed payment of any taxes that are incurred on fuel transactions. Most of all, these bonds protect against potential fraud from any of the parties involved.Always check the guidelines in your state for tax fuel bonds, as they do vary from state to state.
Who Can Help Purchase Fuel Tax Bonds?
Surety companies can help to issue these bonds. You may be asked to submit your financial statements due to the amount of risk these bonds carry. You can always refer to your state’s guidelines for a better understanding of the terms.
How Much do Fuel Tax Bonds Cost?
The fee for a fuel tax bond varies based upon the specific terms and conditions. Generally, you don’t have to pay the entire sum of a surety bond upfront. The fee you must pay (if you are eligible for the bond) can be anywhere between 1% to 4% of the total bond value. Depending on your credit score, the fee could be as much as 15% of the bond value.
How do You Buy a Fuel Tax Bond?
Surety companies issue these bonds. You can call different surety companies and compare their quotes. Also research the surety company to make sure it is a good fit with the available resources you may need. After comparing all these factors, then you can make the decision on which company to issue your bond.