Alabama fuel tax bonds.
From $100.
The bond a terminal operator, supplier, or permissive supplier posts under the Alabama Terminal Excise Tax Act. The Department of Revenue sets the amount — generally about twice your average monthly fuel tax liability. The premium is 1% of the bond amount, $100 minimum — exact price in the on-page calculator.
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How much does an Alabama fuel tax bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
Enter your amount, pay, and file with the Department of Revenue. Larger fuel bonds may get a quick review. Here is the whole thing:
Apply online
Your business details, the bond amount the department set, and the effective date — that is the application.
Issued on the spot
No credit check up to $10,000. Larger fuel bond amounts may get a quick review.
File with the Department of Revenue
Submit the executed bond with your Motor Fuels license application to the Business & License Tax Division. Wet-ink originals mailed whenever the state insists on them.
What it is and who needs it.
What the fuel tax bond actually covers
Alabama taxes motor fuel at the terminal rack under the Alabama Terminal Excise Tax Act (Ala. Code §40-17-330 et seq.), administered by the Department of Revenue's Business & License Tax Division, Motor Fuels Section. Licensees handle large volumes of tax before remitting it, so the act conditions certain licenses on a surety bond.
Under Ala. Code §40-17-335, suppliers, permissive suppliers, and terminal operators must post a bond of at least twice their average monthly tax liability, up to a maximum of $2,000,000. The Commissioner approves the bond limit by license classification before the license issues. A licensee may deposit certified funds instead of a bond.
The bond stands behind the fuel excise tax you owe — if you fail to remit, the state can recover against it, and if the surety pays, you repay the surety. We issue the amount the department set; your exact price appears at the application, starting at $100.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Department of Revenue. Submit the executed bond with your Motor Fuels license application to the Business & License Tax Division. Wet-ink originals mailed whenever the state insists on them.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $10,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the bond amount the Department of Revenue set — the executed bond is generated instantly, ready to file. Larger fuel bonds may get a quick review.
Start the application →Common questions.
Other Alabama bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Fuel tax bond, issued today.
Premiums from $100, exact price shown before you pay. Enter the amount the department set and file the same day.