Ohio Motor Fuel Dealer Bond

Ohio Motor Fuel Dealer Bond

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.

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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.

What Is the Lowest Price for the Ohio Motor Fuel Dealer Bond?

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.

Bond LimitCost
$10,000$100
$25,000$250
$50,000$500
Ohio Motor Fuel Dealer Bond Cost

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. 

Why Does the Ohio Department of Taxation Require This Bond?

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.

How to Apply for the Ohio Motor Fuel Dealer Bond With Jet

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.

Can Jet File the Bond to the Department of Taxation for Me?

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

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

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.

How to Renew the Ohio Motor Fuel Dealer Bond

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. 

How Does a Dealer of Motor Vehicle Fuel Avoid Bond Claims?

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.

What Happens if I Get a Motor Fuel Dealer Bond Claim in Ohio?

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.

Ohio Motor Fuel Dealer 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: