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What to Know About the Types and Costs of Bonds for Fuel Providers

If you are going to be selling gas, then you would need to make sure that you have the right fuel tax bond for your location. There are a wide variety of options that you might need to purchase, to ensure that you know the types and the cost that you would be looking at. It is important that you know this information before you get started selling any gas so that you are covered by the law and so you don’t get in trouble.

Common Bond Types

When it comes to fuel tax bond there are plenty of types that are common in the various states, including:

  • Motor fuel supplier

  • IFTA

  • Diesel supplier

  • Fuel distributor

  • Gas and mileage tax

  • Surety tax

  • Special gas

  • Pollutants or gas tax bond

  • Financial responsibility

  • Gasoline distributor

  • User seller bond

These are just a few of the ones that are common in different states, so ensure that you figure out which one is valid in your state. There might be a few that are applicable, so ask the experts to help you figure out which ones you need to apply for.

Cost

There are costs that are associated with the fuel tax bond and they vary in all of the states depending on what regulations have been put into place. The cost that you would have to pay is dependent on the amount of the bond that the state requires and you need to pay a certain percentage. This depends on the credit score that you have and if you have a good one, then you would have to pay 1% to 5% of the final amount, while if you have lower scores, then it might be 4% to 7.5% or higher. For those who have a credit score that is lower than 650 are more likely to have to pay around 15% of the final amount.

Make sure that you are aware of what type you would need to apply for, which is dependent on the state, or states, that you are going to be operating in. You should also be aware of the cost that you would have to pay, which is based on the amount and your credit score. If you don’t know which ones you would need, then make sure to contact the experts so they can help you with the necessary inquiries and the paperwork.

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