How much does a motor fuel tax bond cost in Louisiana?
The Louisiana Department of Revenue requires individuals involved in the sale or transport of motor fuels to post a surety bond. The required bond amount varies depending on the type of motor fuel license for which the principal is applying. The cost of Louisiana motor fuels bonds is subject to review by an underwriter, which means the amount the applicant will pay is determined by a review of their qualifications. Due to the inherent risk of tax bonds, premiums typically start at 2% of the total bond amount.
|Bond Type||Bond Amount||Cost*|
|$20,000 Motor Fuel Tax Bond Distributor, Importer, Exporter, Blender, or Interstate Motor Fuel User||$20,000||Starts at $400||Apply Now|
|$50,000 Motor Fuel Tax Bond Supplier or Permissive Supplier||$50,000||Starts at $1,000||Apply Now|
|$1,000,000 Motor Fuel Tax Bond Terminal Operator||$1,000,000||Subject to Underwriting||Apply Now|
Why do I a motor fuel tax bond?
Motor fuel tax bonds in Louisiana ensure that individuals who work in the state’s motor fuel industry pay their taxes. This bond also ensures that principals (motor fuel transporters) abide by all laws stated in the Louisiana Revised Statutes and Administrative Code. Some of these provisions include, but are not limited to:
- keeping and maintaining records for 2 years after any transaction
- authorizing the state to access any storage for fuels
- only transporting fuels if authorized to do so
- delivering fuel to any business only between the hours of 5 a.m. and 9 p.m.
What’s the fine print?
The following information must be listed on the bond form:
- account number
- legal name of business
- trade name of business
- principal location of business
- mailing address
- ownership structure
- license type
The principal’s signature must be witnessed.
Louisiana motor fuels tax bonds are continuous until canceled. If the bond is to be canceled, the surety must provide 30 days of notice to the Louisiana Department of Revenue prior to canceling the bond.
What kind of license do I need?
Becoming bonded is the first step toward obtaining a motor fuel excise tax license. Before you’re granted a license, you must submit the completed application and a surety bond in the correct amount.
The Louisiana Department of Revenue offers 10 license types:
- terminal operator
- permissive supplier
- interstate motor fuel user
- motor fuel transporter
- aviation fuel dealer
Detailed licensing requirements can be found in the “Additional Resources” section below. If you have questions about the type of license you need or the licensing process, contact the Department of Revenue at 1 (225) 219-7656.
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