New Mexico Special Fuel Supplier or Gasoline Distributor Tax Bond Guide
In New Mexico, all special fuel operators, suppliers and distributors need a surety bond to register with the state.
Bond Overview
- Purpose: To guarantee payment of state fuel taxes
- Who Needs It: All special fuel rack operators, importers, suppliers and dealers in New Mexico
- Regulating Body: The New Mexico Taxation and Revenue Department
- Required Coverage: $1,000–$50,000
- Premium Rate: Credit-based, typically 2–5%
Keep scrolling to learn more about the bonding process.
What Is a New Mexico Special Fuel Tax Bond?
A special fuel tax bond ensures compliance with state regulations and payment of fuel taxes.
The New Mexico Taxation and Revenue Department requires this type of license and permit bond to distribute or receive special fuel in the state.
How Much Bond Coverage Do I Need?
The Department will determine your bond amount. Typically, the bond must cover your estimated fuel taxes for two quarters.
How Much Do Special Fuel Tax Bonds Cost in New Mexico?
New Mexico special fuel tax bond premiums are credit-based and typically cost 2–5% of the total bond amount.
Your exact rate will vary depending on the bond amount and your financial qualifications. Apply below for a free personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a New Mexico Fuel Distributor Bond Work?
A New Mexico special fuel distributor bond is a legal contract between three parties:
- Principal: The special fuel supplier or distributor purchasing the bond
- Obligee: The Taxation and Revenue Department requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold the provisions of the Special Fuels Supplier Tax Act.
If you break the bond terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Special Fuel Supplier or Gasoline Distributor Tax Bond?
In New Mexico, all special fuel rack operators, importers, suppliers and dealers must file a surety bond. This includes diesel-engine fuel, biodiesel and kerosene.
If you use special fuel and your business is based in a state that’s not part of the International Fuel Tax Agreement (IFTA), you may also need this bond to meet New Mexico fuel tax requirements.
Note: You can request a bond exemption if you have no late reports or tax payments for 8 straight quarters. The state may cancel your exemption at any time by giving you 10 days' notice.
How Do I Get a Special Fuel Supplier Bond in New Mexico?
SuretyBonds.com provides the fastest and easiest way to get a special fuel supplier bond. Follow these simple steps:
- Apply Online: Select your bond amount and request a free quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Select your shipping option to receive your official bond form
Upon receipt, sign and file the original bond documentation with the Department.
How Fast Can I Get My Bond?
If you’re in a rush, SuretyBonds.com offers overnight FedEx delivery. Purchase now to receive your original bond form the next day.
How Do I Renew My Fuel Tax Bond?
New Mexico fuel tax bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
To renew, just pay the premium — we’ll do the rest!
