Pennsylvania Liquid Fuels and Fuels Tax Bond Guide
In Pennsylvania, you need a surety bond to get a Liquid Fuels and Fuels Tax Permit from the Department of Revenue.
Bond Overview
- Purpose: To guarantee payment of state fuel taxes
- Who Needs It: Fuel distributors and dealers in Pennsylvania
- Regulating Body: The Pennsylvania Department of Revenue, Bureau of Motor Fuels Taxes
- Required Coverage: Based on potential tax liability with a $2,500 minimum
- Premium Rate: Credit-based, typically 0.5–4%
Keep scrolling to learn more about the bonding process.
What Is a Pennsylvania Liquid Fuels and Fuels Tax Bond?
A Pennsylvania liquid fuels and fuels tax bond ensures compliance with state regulations and payment of fuel taxes.
The PA Department of Revenue (DOR) requires this type of license and permit bond for fuel distributors and dealers.
How Much Bond Coverage Do I Need?
The Department determines your bond amount based on your potential tax liability, with a $2,500 minimum. The amount must be enough to cover all taxes, penalties and interest.
You may need to provide a financial statement showing your expected fuel volume and tax obligations.
How Much Do Fuel Tax Bonds Cost in Pennsylvania?
Pennsylvania fuel tax bond premiums are credit-based and typically cost 0.5–4% of the total bond amount. Qualified applicants can pay as little as $50 for $2,500 coverage.
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 Pennsylvania Liquid Fuels and Fuels Tax Bond Work?
A Pennsylvania liquid fuels and fuels tax bond is a legal contract between three parties:
- Principal: The fuel distributor or dealer purchasing the bond
- Obligee: The PA Department of Revenue requiring the bond
- Surety: The provider issuing the bond
As the principal, you promise to uphold the provisions of PA Vehicle Code Chapter 90.
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 Fuel Tax Bond?
All distributors involved in the use, sale or delivery of fuel within Pennsylvania must file a surety bond to apply for a fuel tax permit. Certain dealers may also need this bond at the DOR’s discretion.
This permit applies to the following types of fuels:
- Liquid fuels: Gasoline, gasohol, naphtha, benzol, benzine and alcohols used in motor vehicles
- Fuels: Diesel, kerosene, jet fuel, compressed natural gas, and other combustible gases or liquids used to power vehicles or aircraft
The DOR may waive the bond requirement if you meet one of the following conditions:
- You only sell kerosene for private household use only
- The bond amount is considered excessive compared to the potential loss to the state
Alternatively, you can file a deposit of government bonds or a letter of credit. However, a surety bond is typically the most affordable option, requiring only a small upfront premium.
How Do I Get a Liquid Fuel Tax Bond in Pennsylvania?
SuretyBonds.com provides the fastest and easiest way to get a liquid fuel tax bond. Just follow these simple steps:
- Apply Online: Fill out the quote request form on this page
- 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 bond documentation with the DOR.
How Fast Can I Get My Bond?
SuretyBonds.com issues fuel tax bonds faster than any other provider. We process most bond applications same-day. Apply now for your free quote.
How Do I Renew My Fuel Tax Bond?
Pennsylvania fuel tax bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
Once you pay the premium, we’ll issue a continuation certificate to keep your bond active for another year. File this with the DOR as instructed.
How to Become a Fuel Distributor in Pennsylvania
The Department of Revenue requires a permit for all fuel distributors in Pennsylvania.
First, determine your distributor classification. Then, complete the liquid fuels and fuels permit application. You can submit all forms via mail or the myPATH portal.
You must complete the renewal application annually by May 31 and provide proof of an up-to-date surety bond.
