If you are looking to become a licensee in the fuel and pollutants industry, the Florida Department of Revenue may require you to obtain an applicable Fuel Tax Bond.
Jet Insurance Company provides various Fuel and Pollutants Tax Bonds to act as a financial assurance to the Florida Department of Revenue that the licensee will uphold necessary tax regulations regarding fuels and pollutants. This includes filing accurate reports and the payment of all taxes due. If any of these terms are violated, the surety bond will cover any taxes, accrued interest, penalties, and any other fees owed by the licensee to the Department.
The Florida Department of Revenue sets the standards in regards to determining your custom bond limit. The amount of the bond is based on your license type, so terminal suppliers, wholesalers, exporters, and those seeking a pollutants license will require a bond limit that is equal to three times the average monthly gallons purchased times the total tax levied (bond amounts will not exceed $300,000). If you are an importer, the bond limit must be equal to 60 days of tax liability (there is no maximum bond amount for an importer license).
At Jet, prices are a small percentage of the bond limit and are based on the personal credit score of the applicant. If you are seeking a $10,000 Fuel and Pollutants Tax Bond, prices begin at $100 for a one-year bond term. For additional bond limits and starting rates, take a look at the price chart below.
Bond Limit | Cost |
---|---|
$10,000 | $100 |
$20,000 | $200 |
$50,000 | $500 |
$100,000 | $1,000 |
Bond limits over $15,000 may require an additional look into your financial standing. If this is needed, a Jet underwriter will give you a quick call to discuss such information and an approved rate will be sent to you soon after.
The various Fuel and Pollutants Tax Bonds act as extra layers of financial protection for the Florida Department of Revenue and are ultimately required in order to keep the licensee accountable for their actions. In cases where the licensee violates or fails to comply with state tax regulations, the surety bond will act as a means of restitution for the Department by covering any past-due taxes and/or fees.
There are several different license types in the fuel and pollutants industry, however, only a few licenses require a surety bond. The chart below illustrates which licenses require a Fuel and Pollutants Tax Bond, as well as information on what each license entails workwise.
License Type | Work Field Details |
---|---|
Wholesaler | A person who purchases gasoline, gasohol, diesel, or aviation fuel from terminal suppliers or wholesalers. The fuel may be placed into storage or sold to wholesalers or retail dealers. |
Biodiesel Manufacturer | A business that processes and/or blends organic products that are marketed as biodiesel. |
Importer | A wholesaler who is also licensed as an importer to import tax-unpaid gasoline, gasohol, diesel, or aviation fuel by common carrier or truck. |
Exporter | A person who removes taxable motor, aviation, and diesel fuels from storage (e.g. a bulk facility or from a terminal) that is to be delivered outside of the State of Florida. |
Terminal Supplier | A person who imports gasoline, gasohol, diesel, or aviation fuel into Florida through a vessel or pipeline and then places such product into a registered terminal. |
Pollutants | Pollutants are liquified commodities made from petroleum products, pesticides, ammonia, chlorine, or other solvents. To work with these pollutants as a wholesaler, importer, exporter, etc., you will require a pollutants license and surety bond. |
Retailer of Natural Gas Fuels | Any person who sells or supplies natural gas fuel to users for use in a fuel supply tank of a motor vehicle. |
*A retailer of natural gas fuels is not required to obtain a surety bond until January 1, 2024.
It is important to note that a separate bond is required for each fuel or pollutant product type that you work with as a licensee. Below, you will find a chart with details regarding each fuel and pollutant type.
Fuel Type | Description |
Fuel / Motor Fuel | All gasoline products, including products blended with gasoline or fuel and placed in a storage supply tank of a motor vehicle. |
Diesel Fuel | Petroleum distillate (diesel #2 or biodiesel), including any product blended with diesel placed in the storage supply tank of a diesel-powered vehicle. |
Aviation Fuel | Fuel for use in an aircraft, including aviation gasoline, aviation turbine fuels, and kerosene. |
Natural Gas | Liquefied petroleum or compressed natural gas, including fuel commonly or commercially known as natural gas, butane gas, and propane gas. |
For further information regarding licensing and the ins and outs of the fuel and pollutants industry, take a look at the Department’s Florida Fuel Tax webpage.
At Jet, the application for a Fuel and Pollutants Tax Bond can be completed online. To begin your application, simply fill out the required information (e.g. contact details and social security number). Our underwriting team will also need to know which license applies to you and the bond limit required.
Once submitted, a Jet underwriter will conduct a quick review which includes a soft credit check (this process won’t impact your score). As soon as this step has been taken care of, Jet may ask for additional financial information. When the quote is ready, you’ll receive an approved rate via email. All you need to do is fulfill the payment due and you’ll receive a copy of your receipt and bond form right away. It’s that easy!
Yes! The Jet team can file your surety bond for you free of charge. However, if you would prefer to take care of filing the bond yourself, the option to do so may be selected at checkout. The original signed and sealed Fuel and Pollutants Tax Bond, along with your completed Registration Package for Motor Fuel and/or Pollutants Registrants, must be submitted to the Florida Department of Revenue at the following mailing address:
Florida Department of Revenue
Fuel Unit, Account Management MS 1-5730
5050 W Tennessee Street
Tallahassee, FL 32399