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.
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.
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.
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.
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.
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
Phoenix, AZ 85001
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.
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.
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.
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.