Arizona Motor Fuel Supplier Bond

Arizona Motor Fuel Supplier Tax Bond

The Motor Fuel Supplier Bond is required by the Arizona Department of Transportation (ADOT) to ensure that motor fuel suppliers are not causing financial damages through failure to pay taxes, file reports, or other violations of Articles 1 and 2 of the Arizona Revised Statutes (ARS) Title 28, Chapter 16. The required bond amount is double the estimated monthly tax, with a minimum of $5,000 and maximum $5,000,000.

APPLY FOR MOTOR FUEL SUPPLIER BOND

Purchase your Motor Fuel Supplier Bond with Jet through a unique monthly payment plan. As the limit of the bond increases, monthly payments can make it more affordable to fulfill the bonding requirement.

What Is the Lowest Price for the Motor Fuel Supplier Bond?

The cost of a Motor Fuel Supplier Bond starts as low as $100, but will vary based on the bond limit required and personal credit. Due to the wide range in the possible bond limit, the information required for a quote differs. As the limit increases, a review of financials may be required.

As a direct surety company, Jet offers an unparalleled bonding experience— there is no middleman, premium financing company, or third party involved. This eliminates commissions, broker fees, and third-party fees from the cost of your Motor Fuel Supplier Bond.

How Is the Bond Limit Determined?

The limit for a Motor Fuel Supplier Bond has a minimum of $5,000 and a maximum of $5 million. The amount is usually double the monthly tax payment estimated by the Director of ADOT, but the final decision lies with the Director to assign an appropriate amount. The director may change the limit at any point and require additional bonding to have suitable coverage.

Why Is the Motor Fuel Supplier Bond Required?

The Motor Fuel Supplier Bond must be held by anyone providing the services of a motor fuel supplier, even those who are permissive suppliers or suppliers with blanket election. The bond guarantees that you follow the ARS as they pertain to motor fuel suppliers (28-16, Sections 1 and 2), and, in particular, that you will file true reports and pay your taxes in a timely manner. The bond will reimburse the Department for missed tax payments or incorrect tax amounts based on inaccurate reports. 

ADOT regulates the transfer of motor fuels as a way to protect Arizona citizens from untaxed and unregulated fuel. Illegal ways of obtaining fuel may contain fuel that is mixed with other substances, polluting air and soil and damaging vehicle engines. Additionally, ADOT uses taxes collected for road construction, which the failure to collect prevents ADOT from servicing the public as needed.

How Does the Arizona Motor Fuel Supplier Bond Application Process Work?

Applying for a Motor Fuel Supplier Bond with Jet is easy! The online application takes only minutes to get through. To determine your quote, you will need to submit business information, the required bond limit, and a social security number (for a soft credit check). Once you complete the application, you will receive a quote available for immediate purchase. A receipt and a digital copy of your bond will be emailed to you following purchase. 

Larger limits require additional review by a Jet team member. Additional information such as business financials and personal financials may be requested.

Can Jet File the Motor Fuel Supplier Bond For Me?

Yes, Jet can file your Motor Fuel Supplier Bond with ADOT! Once you are done with your purchase, Jet will complete the bond with a surety seal and signature and submit the bond. A copy of your bond will be emailed and mailed to you as well. 

If you require the original bond to be mailed to you, you may choose that option during checkout. The bond must be sent to the following address: 

Mail Drop 541M 
Fuel Tax Licensing
Motor Vehicle Division
P.O. Box 2100 
Phoenix, AZ 85001

Can I Cancel My Motor Fuel Supplier Bond and Get a Refund?

Yes, you can cancel your Motor Fuel Supplier Bond with Jet and receive a prorated refund. This means that you pay for the time that your bond is active and any remaining time left on the bond will be refunded. You can send a written request of cancellation to Jet through mail or email. 

One thing to be aware of is that once ADOT receives notice of the cancellation (Jet will notify them as soon as we receive your request), the Department will hold the bond until the last day of the month which contains the 60th day after the cancellation request. For example, cancellation that is requested on March 14th will not be final until May 30th (the last day of May because the 60th day after the request is May 13th). 

Monthly payment plans work a little differently, with each payment providing another month of coverage. After cancellation has been requested, the payment plan will continue during the additional 60 (or more) days until cancellation is final. Payments will be stopped once the bond is no longer active. 

How Do I Renew the Motor Fuel Supplier Bond with Jet?

The Motor Fuel Supplier Bond can be renewed as many times as needed to maintain coverage. Jet will notify you well in advance of the renewal date. When you receive your renewal notice, you can click the link in the email to renew online or fill out the mailed notice and mail it back to Jet. 

At the time of renewal, your renewal premium will reflect your current bond limit. If any changes in your bond limit have occurred, you are responsible for notifying Jet. Complications with your bond (including an inadequate amount of coverage) can lead to the cancellation of your motor fuel supplier license.

How Does a Principal Avoid Motor Fuel Supplier Bond Claims?

The best way to avoid Motor Fuel Supplier Bond Claims is to follow the conditions of the bond as indicated in ARS 28-5631: 

A failure to fulfill the duties listed above can result in claims against your bond. In some cases, ADOT may impose a penalty for any missed payments or reports, such as adding interest and an additional $25 indicated in ARS 28-5621. If you receive any notices or warnings from ADOT, it is best to comply and settle any issues before they turn into a claim.

What Happens if I Get a Claim on My Arizona Motor Fuel Supplier Bond?

If you receive a claim against your Motor Fuel Supplier Bond, Jet is obligated to follow the Arizona Administrative Code R20-6-801 claims process timeline as follows: 

  1. Jet will begin an investigation within 10 days of the claim initiation, providing all pertinent forms and establishing communication with the claimant
  2. The investigation must be finished by the 30th day, unless more time is requested through writing
  3. Coverage must be accepted or denied by the 15th day after a proof of loss has been received
  4. Claims must be paid by the 30th day after an adequate proof of loss has been received

During the investigation, you are expected to be responsive and honest in all communications. Once a bond claim is paid, you are obligated to pay Jet back in the amount of the claim. If you don’t restore your bond to its full limit, your license is at risk of cancellation.

Arizona Motor Fuel Supplier 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: