The West Virginia State Tax Department has adopted new regulations requiring the purchase of a continuous (remains in full force and effect until cancelled) motor fuel tax surety bond when becoming licensed in several areas of the motor fuel industry. Those professions are producers or manufacturers, alternative-fuel bulk end users, alternative fuel providers or retailers, and suppliers including refiners, permissive suppliers, importers, exporters, terminal operators, blenders, and distributors. The exact definitions of each of these professions can be found in the West Virginia Code §11-14C-2.
The amount of the motor fuel tax bond varies depending on the applicant’s profession. If the applicant applies for more than one of these licenses, the surety bond amount may be combined by the commissioner. Some of the surety bond requirements are as follows:
- Suppliers, permissive suppliers and terminal operators must post a surety bond no less than $100,000 or an amount equal to three months’ tax liability, whichever is greater, but not to exceed $2 million
- Exporters, blenders and distributers must post a bond no less than $3,ooo or an amount equal to three months’ tax liability, whichever is greater, but not exceeding $300,000
- Motor fuel transporters are not required to purchase a bond
- Producers, manufacturers, alternative-fuel bulk end users, alternative fuel providers or retailers are not required to purchase a bond unless the licensee fails to file or pay the motor fuel tax or fails to comply with applicable laws
These rules can be found in the WV Code §11-14C-13 in their entirety. Applicants also have the option of posting a cash bond in place of the surety bond.