Motor fuels suppliers, distributors, blenders, importers, exporters, or permissive suppliers are required to hold a Motor Fuels Tax License with the Texas State Comptroller. A Motor Fuels Tax Bond may also be required as a fiscal guarantee from a third party surety company that the Comptroller will receive the full amounts due from tax payments.
Purchasing your Motor Fuels Tax Bond with Jet demonstrates to the Comptroller that you are able to fulfill your financial obligations. Apply within minutes to find out what rate you are approved for!
With Jet, you can buy your Motor Fuels Bond for as low as $100 a year for a $10,000 bond. Of course, the actual cost of the bond is based on a few factors — the largest factor being the bond limit, which can be upwards of $600,000. Other aspects that determine your cost are personal credit scores and financial statements (for larger bond limits). See the chart below for examples of rates for an applicant with preferred credit.
|Bond Limit||Annual Cost|
As mentioned above, this bond does have a variable limit that is based on the type of motor fuel being used. The limit must be within the ranges shown below, calculated by doubling the maximum amount of taxes accrued on tax-free motor fuels during the reporting period.
It is possible for the bond limit to be higher if the Comptroller feels that the license holder needs more than $600,000 in coverage.
This bond is used to ensure that the Texas Comptroller will receive what is due from taxes. If unpaid and uncollectable from the licensee, then the surety will make payment to the Comptroller. Tax revenue is used to reinvest into the state’s highway, county road, district highway, school, or general revenue funds for the benefit of the public.
It only takes a few minutes to complete Jet’s application for a Motor Fuels Tax Bond. Once you click the “Apply” button to get started, you’ll be taken through adding in the information that’s required; general business information, bond limit, and, since a soft credit check is needed, a social security number. Once you have finished, your application will be submitted for a quick review by one of our underwriters. At this time, additional information (like financial statements) will be requested. When your quote is ready, you will get an email with your approved rates and a link to purchase.
After you have completed payment, you will receive a digital copy of your bond and a receipt via email.
Once your purchase has been processed, Jet will go ahead and complete the Motor Fuels Tax Bond form. The bond will then get mailed to you to sign and submit along with your Motor Fuels Tax License Application to the address shown below:
Comptroller of Public Accounts
111 E 17th St
Austin, TX 78774-0100
Yes, you can cancel your Motor Fuels Bond and get a refund for any unused time with Jet. Please send a written request for cancellation (an email to [email protected] would work) to begin the process. Our team will notify the Comptroller and the 30-day cancellation period will begin.
After the 31st day, the Comptroller will release you and Jet from the liability of the bond and Jet will be able to calculate a refund for any time after effective cancellation.
When it’s time to renew your Motor Fuels Tax Bond, Jet will send you a notice via mail and email. The notice will have a quote based on current information, but if there are any changes, let Jet know immediately; or, if we need an update on any information, we will reach out to you. We will provide you with a new quote with the updates (typically a change in the bond limit) via email. You can click the link in the email to accept the quote and make payment for the new term.
The Motor Fuels Tax Bond is essentially used for one purpose: making sure the State receives the money due from motor fuel taxes. If the license holder fails to pay taxes (and any interest, penalties, or costs) or file reports as instructed in the Texas Tax Code, Chapter 162, the Comptroller can suspend or revoke the Motor Fuel Tax License. Any records or information can be reviewed to assess whether there was a deficiency in the amount of taxes the license holder paid. If the licensee does not correct the payments, the Comptroller will demand payment from the bond.
If there is a claim against the Motor Fuels Tax Bond, there will be an investigation into the validity of the claim. Any reports or information used to determine the deficient tax payments can be submitted as evidence by the Comptroller, but you can provide evidence in your defense. If the claim is found to be valid, Jet will have to pay out the claim. You are still responsible for your lack of payment and will need to restore the money to Jet.