Taxable Fuel Bonds
A fuel tax bond guarantees that all fuel sellers will pay their required sales taxes. The fuel seller is the principal and the obligee is a public entity. These type of taxable fuel bonds are required at the state level, usually by the Comptroller or Department of Revenue, in order to for fuel sellers to maintain their licenses. The amount of the bond is determined by the public entity.
Taxable Fuel Bonds are considered high risk because it’s essentially a financial guarantee bond. As the obligee, the public entity could file a claim and receive compensation up to the bond penal sum amount if the principal (fuel seller) is not in compliance. If the amount of the bond is over $50,000, then the surety will most likely need to review company and personal financials in order to approve the bond.
At Baldwin Cox Allen, we have access to over 25 different A rated bonding companies which allows us to shop the market and provide the lowest possible rates. We have cutting edge surety technology which allows us to this for you without delaying the execution of your bonds, as we know that timing can be critical.
Hard To Place Bonds
We have solutions for even the most challenging bonds. We say “Yes” when other agents tell you “No”. Whether it’s because you have low credit, or there’s just a particularly onerous bond form, we pride ourselves on getting bonds approved with the best possible terms.
Please contact us today and let one of our experienced surety bond professionals assist you with your bonding needs!