Dealers of motor vehicle fuel are required to be licensed with the Ohio Department of Taxation, and part of the licensing requirement is obtaining a surety bond. The Motor Fuel Dealer Bond, provided by Jet Insurance Company, acts as financial protection to the Department of Taxation if a dealer fails or refuses to make obligatory tax payments.
Whether you are renewing your motor fuel dealer license or applying for the first time, Jet will help you get the required bond quickly and at an affordable rate.
The price depends on the bond limit and a soft credit check, but with Jet, you can pay as low as $100 for one year or $10 per month. You can also choose to pay for the bond in multi-year terms, which will save you some money in the long run. Refer to the bond rates in the chart below for an applicant with preferred credit at different bond limits.
The bond limit starts at a minimum of $5,000 and is determined by the Department of Taxation. At the commissioner’s discretion, the bond limit may be increased or decreased at any time if they deem it necessary to assure the payment of taxes. The bond can be increased to an amount equal to an average of three months’ liability or $50,000, whichever is larger.
Jet is the only direct writer of surety bonds in Ohio that offers a monthly subscription. You can lock in a rate for years to come without worrying about paying a renewal fee.
The Ohio Department of Taxation is tasked with regulating various businesses and individuals, including dealers of motor vehicle fuel. The surety bond is part of the license regulation, which guarantees payment is available to the Department through the surety company (Jet) should a dealer fail to pay excise taxes on motor fuel or file false reports, resulting in monetary loss. Taxes collected by the Department of Taxation are used to keep the state safe per Section 5735.05 of the Ohio Revised Code, which includes maintenance of the state highway system and the administration and enforcement of state laws relative to motor vehicle operations.
Applying for a bond has never been easier. Just follow the step-by-step application, inputting information such as the required bond limit and basic business information. Those with bond limits under $15,000 will be able to apply, pay for, and receive the bond within minutes. For limits over $15,000, a Jet underwriter will conduct a quick review of the application details and a rate will be emailed to you when ready. From there, the bond can be purchased online and you will receive a copy via email along with your receipt.
Absolutely! At Jet, we make the process as simple as possible and file the bond for you, free of charge. Once you have made payment, Jet completes the bond form and sends it to the Department of Taxation along with the Power of Attorney and Certificate of Compliance. If you prefer to file the bond yourself, you can select that option when making payment.
All required documents are sent to the following address:
State of Ohio Department of Taxation
Excise and Energy Tax Division, Motor Fuel Tax Unit
PO Box 530
Columbus, OH 43216
Jet allows you to cancel the bond at any time, but make sure you have another bond lined up or are ending your license. The Ohio Department of Taxation will revoke the license for failure to uphold the surety bond requirement. When you’re ready to cancel, just send us a request via email at [email protected]. We will immediately notify the Department of Taxation where the bond is kept active for 60 days upon receipt of the notice. Jet must take this time into account when calculating any potential refunds.
If you paid in full for the bond, Jet will ensure any unused premium is returned to you after the 60-day cancellation period. If you pay monthly, there is no refund but the payments will end after the 60-day period.
Paying monthly? There is no renewal process! The bond is kept active as long as we continually receive monthly payments from your preferred account.
Paid for the bond in full? Jet will send you a renewal invoice to your email and your mailing address with ample time to provide payment. Payment must be made to keep the bond active and on file with the Department of Taxation. You can simply pay through the email link or mail in your payment information on the renewal invoice.
Following the Ohio Revised Code, Chapter 5735 guarantees your compliance with the laws, rules, and regulations, and therefore minimizes your chances of a claim. Basically, file accurate monthly reports per Section 5735.06 and pay your taxes to avoid any trouble.
Penalties of varying types are assessed for failure or refusal to comply with the applicable laws, including license revocation, fines, misdemeanor charges, and those listed in Section 5735.99 of the Code. If you are found in violation of Chapter 5735, it is your responsibility to fix the issue(s) and cooperate with the Department of Taxation to avoid disciplinary action, including a claim on your Motor Fuel Dealer Bond. Bond claims only come from the Department after other avenues have been exhausted due to a dealer’s noncompliance.
The Department of Taxation will notify Jet to make a claim payment. At this time, Jet does our due diligence by reviewing the claim details before simply making the payment as we want to ensure no faulty claims are paid out. However, claims found to be valid will be paid to the Department. You, as the motor fuel dealer, are liable for your actions and must reimburse Jet for the full amount of the claim. Getting a claim on your bond will result in difficulties obtaining a surety bond and license in the future.