Washington Fuel Tax Bond Guide
If you’re applying for a motor fuel license in Washington, 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: Motor fuel licensees that pay excise taxes
- Regulating Body: The Department of Licensing, Fuel Tax Unit
- Required Coverage: 3x the average monthly fuel tax liability
- Premium Rate: 1–10%, credit-based
Learn all about the bond requirements and process in this guide.
What Is a Washington Fuel Tax Bond?
Washington fuel tax bonds protect the state and the public if a fuel seller, importer or distributor does not comply with industry and tax regulations.
This guarantees fuel licensees will pay all taxes, penalties and interest owed to the local government, along with operating according to state law.
Who Needs a Fuel Tax Bond?
The Department of Licensing, Fuel Tax Unit requires this bond for all motor fuel licensees except for terminal operators and fuel carriers.
Your bond coverage must equal three times the estimated monthly fuel tax liability with a $5,000 minimum and $100,000 maximum.
How Much Do Fuel Tax Bonds Cost in Washington?
Washington fuel 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 Washington fuel 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 email you the bond shortly after purchase. Be sure to file the bond with the Fuel Tax Unit as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Washington Fuel Tax Bond Work?
As with all surety bonds, a fuel tax bond creates a legal contract between three parties:
- Principal: You, the fuel seller or company filing the bond
- Obligee: The Department of Licensing, Fuel Tax Unit 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 fuel tax bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.