Virginia Fuels Tax Bond Guide
If you’re applying for a fuel supplier or distributor license in Virginia, you’ll likely need this surety bond.
Bond Overview
- Purpose: To protect the state if a fuel seller or distributor breaks tax regulations
- Who Needs It:
- Regulating Body: The Virginia Department of Motor Vehicles
- Required Coverage: $2,000–$300,000
- Premium Rate: 1–10%, credit-based
Learn all about the bond requirements and process in this guide.
What Is a Virginia Fuels Tax Bond?
Virginia fuels tax bonds protect the state and the public if a fuel seller, mixer or distributor does not comply with industry and tax regulations.
This guarantees fuel license holders will pay all taxes, penalties and interest owed to the local government, along with operating according to state law.
How Much Bond Coverage Do I Need?
Your Virginia fuels tax bond coverage requirement will vary based on your license type.
$2,000 Bond
- Terminal operators
- Bonded importers
- Permissive suppliers
- Suppliers who receive motor fuel in a tow-party exchange
$2,000–$300,000 Bond( equal to 3x average monthly tax liability)
- Fuel distributors
- Fuel blenders
- Occasional importers
- Aviation fuel consumers
- Fuel alcohol suppliers that are not position holders
If you’re unsure about your coverage needs, verify your bond amount with the State Commissioner.
How Much Do Fuels Tax Bonds Cost in Virginia?
Virginia fuels tax bonds cost a small percentage of the bond amount, typically 1–10%. Exact rates vary based on personal credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a Virginia fuels tax bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file the bond with the Virginia Department of Motor Vehicles as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Virginia Fuels Tax Bond Work?
As with all surety bonds, a fuels tax bond creates a legal contract between three parties:
- Principal: You, the fuel seller or company filing the bond
- Obligee: The Virginia Department of Motor Vehicles requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for paying state taxes and upholding license regulations.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your fuels tax bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
