Individuals in the motor fuels industry who are subject to the Motor Fuels Excise Tax License requirement in Alabama must obtain a Surety Bond as demanded by the Alabama Department of Revenue (AL DOR).
Do you need an Alabama Fuel Tax Bond?
We can help you get the bond you need. We have a variety of bonds available, so we can find the right one for your business.
Get the peace of mind that comes with knowing your business is fully compliant with all laws or rules and regulations.
Contact us today to get started on your Alabama Fuel Tax Bond!
Why is the Alabama Fuel Tax Bond necessary?
Surety bonds are an important part of ensuring compliance and financial stability. They’re required in all 50 states to guarantee that companies will follow their licensing or permitting requirements across a wide variety of industries, professions, etcetera. The business demonstrates its commitment both financially as well as ethically by providing proof it can uphold these standards.
What is a Fuel Tax Bond in Alabama and how does it work?
Surety bonds are a great way to provide financial guarantees that contracts and other business deals will be completed according to mutual terms. They protect consumers from fraud, malpractice, or any other breach of their agreement with the company that issues them; when this occurs one party can claim your surety bond for you (the principal) to fulfill damages caused by breaking those promises! Get a Alabama Premium Finance Company Bond.
What is the cost of an Alabama Fuel Tax Bond?
Surety bond costs can vary by location and the requirements outline how large a surety’s commitment to pay out in claims, meaning they will charge different premiums based on an individual’s credit scores or financial history.
Is it possible to obtain an Alabama Fuel Tax Bond with bad credit?
While it may seem like a bad credit score means the end of your dreams, you don’t have to give up on getting bonded! Axcess-Surety can help even if your circumstances are adverse. We know that many people who fall into these types of debt include medical expenses or bankruptcies among others so we provide options for everyone with our strong commitment to helping all individuals or companies succeed.
How to obtain an Alabama Fuel Tax Bond?
Obtaining a surety bond is quick and easy with an online application. The company will ask for information about your personal, professional, or financial background but once you receive the quote they can make it effective in the little time frame required!
What is the process for renewing a Surety Bond in Alabama?
Your Alabama Fuel Tax Surety Bond remains in effect until you cancel it, but you must renew it at the end of the bond term to keep it active. You need to pay the renewal premium for the new bond term to maintain active licensure status with the Alabama Department of Revenue and continue to have coverage. Have a Alabama Service Contract Provider Bond.
Is it possible to cancel my Alabama motor fuel bond? Will I be eligible for a refund?
You can cancel your bond with us anytime by sending us a written cancellation request. Our team will send a bond termination notice to the Alabama Department of Revenue, and the bond liability will be released 30 days after the Commissioner receives the notice.
What is the process to determine the limit of my Alabama Fuel Tax Surety Bond?
The Alabama Department of Revenue’s Commissioner needs to approve the Motor Fuels Bond limit based on the applicant’s license classification, in accordance with Section 40-17-335 of the Code of Alabama, before issuing a license.
Suppliers, permissive suppliers, and terminal operators are required to maintain a bond that is at least twice the amount of their average monthly tax liability, but no more than $2,000,000.
Exporters, importers, distributors, and blenders of motor fuel are required to maintain a bond of at least $2,000 or an amount equivalent to twice their average monthly tax liability, whichever is higher.
The Commissioner may ask for a new Motor Fuels Bond from motor fuels suppliers, permissive suppliers, and distributors if their current surety bond is not adequate or has a lower limit. The limit for the new bond will be based on the licensee’s average excise taxes owed over a two-month period. See a Alabama Highway Right of Way Permit Bond.
What can a licensee do to prevent surety bond claims?
If you are a motor fuel supplier, permissive supplier, terminal operator, exporter, importer, distributor, or blender in Alabama, you must adhere to the rules and regulations outlined in Title 40, Chapter 17, Article 12 of the Alabama Legislature for your specific license.
If you do not follow these terms, there are consequences. You may receive a warning letter from the Alabama Department of Revenue or have your license suspended, which are less serious penalties. However, if you commit more severe violations, you may be fined up to $10,000 per violation, lose your license permanently, face misdemeanor charges, and/or have to make a claim on the Motor Fuels Bond.
What happens if someone makes a claim on my Alabama Fuel Surety Bond?
If you receive a notice of a bond claim from the Alabama Department of Revenue, contact the surety bond company. They will explain their standard claim process and review all information related to your case. If the claim is justified, the company will make payment up to the full bond limit.
If you don’t repay the surety bond company for any claims they paid out on your behalf, you will be responsible and may have difficulty getting a new surety bond. This is especially important if you work in the motor fuels industry in Alabama, as you need an Alabama Fuel Surety Bond to legally operate in that field. Read a Alabama Money Transmitter Bond.
Glenn is dedicated to helping contractors get surety bonds and support. Glenn specializes in the construction industry with expertise in bids bonds, performance bonds and payment bonds. Glenn regularly published articles and resources for all things surety bonds.