Texas International Fuel Tax Agreement Bond (IFTA Bond)

Texas International Fuel Tax Agreement Bond

Qualifying commercial carriers may be required to file an International Fuel Tax Agreement Bond (also called the IFTA Bond) with the Texas State Comptroller as a guarantee that there is an avenue for the Comptroller to seek due tax payments that a carrier withheld.

APPLY FOR BOND

Purchase your IFTA Bond with Jet to show the Comptroller proof of your financial responsibility.

What Is the Cost of an IFTA Bond?

The price of your IFTA Bond will be largely determined by the amount required for your bond; for example, bonds with a $10,000 limit can be as low as $100 but can increase as the limit increases. Additionally, personal credit, financial reports and past tax payment history will dictate the actual cost of your bond. See the chart below for examples of what an applicant with preferred credit would be approved for.

The bond limit required by the Comptroller is dependent on the amount of tax liability of the carrier. The amount must be enough to cover future missed payments.

What Is the Purpose of the IFTA Bond?

The IFTA Bond is placed into effect by the Comptroller to protect the State of Texas and other jurisdictions of the IFTA against unpaid taxes. The IFTA, or the International Fuel Tax Agreement, is an agreement across the contiguous 48 states of the USA and 10 provinces of Canada, excluding Alaska, the District of Columbia, Hawaii, and the Nunavut and Yukon Territories. Licensing and bonding is handled by the commercial carrier’s base jurisdiction; in Texas, the Comptroller of Public Accounts is charged with this duty. 

The IFTA license must be held for commercial carriers entering/leaving Texas more than five times per year and whose vehicles are used for transporting people or property and meets one of the following qualifications:

How to Apply for the IFTA Bond With Jet

Applying with Jet is easy! Our application will walk you through adding in the information needed for the bond and only takes a few minutes to complete. Part of the process is a soft credit check, so a social security number is required.

Once you have completed the application, it will be submitted for a review by a Jet team member. Additional information, such as financial statements or other paperwork needed for underwriting, will be requested at this point. After the review is complete, you will receive an email with your approved quote that is ready for purchase. 

You will be emailed a digital copy of your IFTA Bond and a receipt to keep for your records.

Can Jet File the IFTA Bond to the Texas State Comptroller for Me?

Jet will prepare the IFTA Bond form and mail it directly to the Comptroller for you. If you need to file the bond yourself, we can mail the bond to you — just click the option to have the bond sent to you when you are submitting payment information during your purchase. 

The original bond, with attached power of attorney and any other documents that you may need to submit, must be mailed to: 

Comptroller of Public Accounts
111 E 17th Street
Austin, TX 78774-0100

How to Renew the IFTA Bond

When your bond term is ending, Jet will send you a notice for renewal through mail and email. If you don’t have any changes to your bond, it only takes a minute to renew your bond. You won’t need to file any additional paperwork, Jet will take care of it!

If there are changes, now would be a good time to let Jet know so that your coverage can be adjusted. Your new quote will be emailed to you to purchase.

How Does a Carrier Avoid IFTA Bond Claims?

It’s simple! The IFTA Bond makes sure that the Comptroller will receive any taxes (that’s including penalties and interest or any other costs) that you owe in a timely manner. Again, this bond isn’t required for all IFTA licensees; it’s only put in place for licensees that have missed payments already. 

Think of the IFTA Bond as a last defense for the Comptroller; any previous payments resulted in a disciplinary action: penalties, interest on late payments, requiring a bond. Now, missed payments are serious business — the Comptroller will file a claim on the bond to receive the amount of tax due should you fail to pay it in full and on time. 

If you receive a claim filing, let Jet know as soon as possible and provide any evidence you have for your defense. Our team will make sure that the claim has merit before proceeding, but typically, government entities have ample evidence for their claim. A claim that is valid will be paid out by Jet, but you are still responsible for the lack of payment and will need to pay Jet back.

Texas International Fuel Tax Agreement 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: