Arizona International Fuel Tax Agreement (IFTA) Bond

Arizona International Fuel Tax Agreement (IFTA) Bond

The Arizona Department of Transportation (ADOT) may require motor carriers to file an International Fuel Tax Agreement (IFTA) Bond as a means of guaranteeing tax payments, report submissions, and general compliance with the license obligations. The bond is enforced by the Director of ADOT when there is a history of tax payment issues. The limit can be up to $100,000 to cover damages but the amount required is determined by the Director of ADOT.

APPLY FOR IFTA BOND

Buying your IFTA Bond with Jet will get you in direct contact with the insurance company — no middlemen, third-party financers, or agents can get a “cut of their share” — giving you a lower price.

What Is the Lowest Price for the IFTA Bond?

The cost of an IFTA Bond starts as low as $100, but will differ based on the bond limit and your personal credit. The limit is assigned to you by ADOT and cannot be higher than $100,000. The chart below shows the rates that can be offered to an applicant with good credit at different bond limits.

Jet offers annual payment options for the IFTA Bond and an exclusive monthly payment plan. Our payment plan is a direct agreement with you, meaning there is no financing company adding interest and hidden fees.

What Is the Purpose of the IFTA Bond?

The Arizona DOT may require the IFTA Bond for motor carriers that operate in Arizona and another jurisdiction that is a part of the IFTA. This includes the 48 contiguous states of the United States and all provinces of Canada (with the exception of the Nunavut and Northwest Yukon territories). A carrier that is based under the jurisdiction of Arizona will work with ADOT for the IFTA licensing.  

The IFTA was made to assist motor carriers who work in more than one jurisdiction by standardizing taxes and licensing. The bond is not always required but ADOT may enforce it when there is reason to believe that the carrier will shirk away from the responsibilities of the IFTA license, particularly in filing tax reports and paying taxes. ADOT relies on collecting taxes to maintain the road and highway system.

How Does the Application Process Work With Jet for the IFTA Bond?

When you apply for your IFTA Bond with Jet, you will go through an easy step-by-step process online. The application will need basic business information and a social security number for a soft credit check (don’t worry, this won’t affect your credit score). Once the application is done, you may receive a quote that is ready to purchase. Once you pay for the bond, you will receive an email with a receipt and a digital copy of your bond. 

Applications for a bond that has a limit over $15,000 will require a further review by a Jet team member. If additional information is needed, you will be contacted. Once the quote is ready, it will be emailed to you for purchase.

Can Jet File the IFTA Bond For Me?

Yes, Jet can mail the IFTA Bond to the Arizona DOT for you! Once you have purchased your bond, Jet will complete the bond and mail it to ADOT. If you need to file the bond yourself, you can indicate where you would like the bond to be mailed to during checkout. 

The bond and any other licensing paperwork must be mailed to: 

Motor Carrier Licensing Unit
Motor Vehicle Division
P.O. Box 2100 
MD 527M
Phoenix, AZ 85001

Can I Cancel My IFTA Bond and Get a Refund?

With Jet, you can! You will receive a refund in a proportional amount of the time left on the IFTA bond. Once you request cancellation, Jet will send notice to ADOT right away. The bond will be held by ADOT and remain active for 60 days and until the end of that month — if the 60th day after the cancellation request is August 12th, the bond will be held until August 31st. Since the bond is still active during this time, it will not be counted towards your refund. Any time left on the bond after cancellation is calculated into your refund. 

Monthly payment plans will continue with payments for an additional 60 (or more) days until cancellation is final. You will not be charged following the cancellation of the bond.

How to Renew the IFTA Bond

To renew your IFTA Bond, you must simply complete the renewal notice you receive from Jet through mail or email ahead of the due date. Regardless of how you renew, it only takes a minute to submit payment for your renewal. If there is a change to the bond limit from ADOT, it can be addressed at this time so Jet can send you the new rates for the appropriate coverage. 

If you are participating in the monthly payment plan, you will receive a notice to report any changes to the bond. Your monthly payments will continue as before if you do not notify Jet of any changes. You may update the bond limit at this time to have appropriate coverage and avoid license complications.

How Does a Principal Avoid IFTA Bond Claims?

The best way to avoid claims on an IFTA Bond is to follow the obligations of the bond indicated in ARS 28-5736(B). You are required to: 

Failure to comply with these rules may result in disciplinary action, such as additional payment to satisfy the director’s assessment (ARS 28-5722). If ADOT reaches out with any issues with your records or payment, it is in your best interest to try to appease the Department before the issue escalates to a claim.

What Happens if I Get a IFTA Bond Claim?

If you receive a claim against your IFTA Bond, Jet must follow the claims handling process given by the Arizona Administrative Code R20-6-801. An investigation in the allegation will begin, which will take up to 30 days (a written request can be made for more time). During this time, Jet will collect information from you and ADOT to determine the outcome of the claim. Usually, a government entity will be able to provide sufficient information to back up their claims. 

If the claim proves valid, Jet will pay ADOT in the amount of the claim within 30 days of the receipt of an acceptable proof of loss. You are responsible for paying Jet back to restore the bond to its full limit. Failure to have a bond in the required amount will lead to complications with your IFTA license.

Arizona International Fuel Tax Agreement (IFTA) Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: