In Arizona, any person who wishes to buy, sell, or exchange aircraft must have an Aircraft Dealer License, and must post the $10,000 Arizona Aircraft Dealer Bond. Jet Insurance Company offers the Aircraft Dealer Bond to guarantee that dealers will pay appropriate taxes and fees and faithfully perform all sales contracts in accordance with the Arizona Revised Statutes (ARS) Chapter 25.
At Jet, we are pushing the envelope to get you the best price for your bond — streamlining the application process and cutting out middlemen who charge you fees and commissions.
With Jet, the Arizona Aircraft Dealer Bond starts at $100 per year, or just $10 per month with our monthly payment plan. Our rates are based on a small percentage of the $10,000 bond limit and the personal credit score of the aircraft dealer applicant. Below are rates for the preferred tier with Jet.
Jet is soaring to new levels with our unique monthly payment option, allowing aircraft dealers to keep their bond continuously active by paying a simple, low monthly rate, allowing you to keep your scan where it belongs: on your business.
The Aircraft Dealer Bond is required by the Arizona Department of Transportation (ADOT) to ensure that licensed aircraft dealers will act in good faith in their dealings with consumers, and perform the duties outlined in ARS Chapter 25 Article 5. Some examples of these duties are filing timely reports and paying taxes, fees, or other amounts associated with selling or trading aircraft in the state of Arizona. The bond stands as a financial guarantee when an aircraft dealer acts dishonestly or fails to pay fees and taxes, resulting in damages to the general public.
The Arizona DOT relies on the payment of taxes to plan, build, and operate the Arizona transportation system, which includes the regulation of aviation operations, as indicated in Chapter 25 of the ARS.
When you buy your Aircraft Dealer Bond with Jet, the process is completely online and takes just a few minutes. We will need some basic information, like your name and social security number for a soft credit check. Once you complete the application, you will receive a quote for your bond that’s ready to purchase. After purchase, you will receive a receipt and a copy of the bond for your records.
Yes, Jet is your wingman for filing the bond with ADOT! Jet will send the Aircraft Dealer Bond directly to the Motor Vehicle Division for you, and send you an electronic copy of the bond for your records.
If this is your first time applying for your license with ADOT, you will need to submit your Aircraft Dealer License Application to ADOT’s Motor Vehicle Division and it may be best to include the original bond form with your application. You may select that option at checkout and Jet will send the bond to you. The original, signed and sealed bond must be mailed to the following location:
Arizona Department of Transportation
Motor Vehicle Division
Aircraft Registration Unit, Mail Drop 542M
PO Box 2100
Phoenix, AZ 85001-2100
With Jet, you can! All you need to do is send Jet a written cancellation request (email is fine) and Jet will send a cancellation notice to ADOT. Liability on the bond will be held for an additional 60 days until ADOT finalizes cancellation.
If you are utilizing the monthly payment option, Jet will continue payments during that 60-day cancellation period since the bond is still active. Once the bond is cancelled by ADOT, payments will cease. Annual payment plans will be refunded for any remaining time left on the bond (excluding the 60-day cancellation period).
Don’t forget — any lapse in the Aircraft Dealer Bond will automatically suspend your aircraft dealer license. Furthermore, under A.R.S. Chapter 28-8386, anyone conducting aircraft transactions without a valid license will be guilty of a Class 6 felony in Arizona, and may owe license taxes for the aircraft in their possession intended for sale.
The Aircraft Dealer Bond in Arizona is continuous until cancelled, which means that as long as you continue your monthly or annual payments to Jet Insurance Company, your bond will stay active.
When you buy your bond with Jet and choose the monthly payment option, this part is easy! Each monthly payment that Jet receives keeps your bond active. If you are paying on an annual basis, don’t worry; Jet will give you plenty of time before your renewal date so you can submit your payment for the year.
The Arizona Aircraft Dealer Bond is intended to protect consumers and the State of Arizona from aircraft dealers who neglect their duties, i.e. paying appropriate taxes and dealing fairly with customers in all sales contracts and agreements.
In order to avoid a claim against the bond, aircraft dealers should endeavor to address issues directly with the customer when they make a complaint. Resolving complaints at the lowest possible level is the best way to keep them from escalating into a bond claim.
Immediately notify Jet if you receive a claim against the Aircraft Dealer Bond. We will conduct an investigation into the validity of the claim (Arizona Administrative Code R20-6-801), and come to your defense to the utmost degree possible. Jet will have up to 30 days to conduct this investigation and will need honest communication from you and full access to any documentation about the complaint.
If the claim against your bond is valid, Jet Insurance Company is obligated to pay up to the full limit of the bond. In this respect, consider Jet to be a financial guarantor, paying on your behalf. You remain responsible for the actions that resulted in the claim, and must reimburse Jet for the payment made on your behalf. Once that payment is made, the bond can be reinstated, avoiding complications with Aircraft Dealer License.