AL fuel tax distributor bonds.
Flat 3%. Enter your amount.

A licensed distributor under Alabama’s Terminal Excise Tax Act posts a bond with the Department of Revenue — a minimum of $2,000, or roughly twice the average monthly tax liability if that is greater. Enter the figure the Department set and we issue it at a flat 3% with no credit check.

Required for a distributor’s license under Code of Alabama §40-17-335
Amount is at least $2,000, or 2× average monthly liability — whichever is greater
Flat 3%, no credit pull — enter the required amount and the premium updates
Flat 3%of your bond amount$275minimum premiumNo creditcheck to issue
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NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Apply to filed in one sitting.

No underwriting queue for the standard distributor bond — enter your amount, pay, and file with the Department of Revenue. Here is the whole thing:

TODAY · 5 MINUTES

Apply online

Your business details, the bond amount the Department set, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

No credit check and no waiting — the executed bond is generated as soon as you pay. Larger amounts may get a quick review.

SAME DAY

File with the Department of Revenue

Submit the executed bond with your distributor license application. Wet-ink originals mailed whenever the Department insists.

The whole pricing page.

Bond amount × 3% = your premium, one-time, $275 minimum. Enter the figure the Department of Revenue set and the premium updates.

$2,000 bond
$275
$10,000 bond
$300
$25,000 bond
$750
About this bond

What it is and who needs it.

What the distributor bond actually covers

Alabama taxes motor fuel under the Terminal Excise Tax Act (Code of Alabama Title 40, Chapter 17, Article 12). A distributor — a person other than a licensed supplier who buys taxable fuel for resale from a licensed terminal supplier — is licensed by the Department of Revenue and must post a bond standing behind the fuel tax.

Under §40-17-335, a distributor’s bond is set at a minimum of $2,000, or approximately twice the average monthly tax liability, whichever is greater. It is a three-party arrangement: you (the principal), the surety carrier, and the Department of Revenue (the obligee). If a distributor fails to remit, the state recovers against the bond.

It is not insurance for you — if the surety pays the state, you repay the surety. We issue the amount the Department named, at a flat 3% with no credit check.

Code of Alabama §40-17-335Under Code of Alabama §40-17-335 (Alabama Terminal Excise Tax Act), the bond for an exporter, blender, importer, or distributor is a minimum of $2,000 or approximately twice the average monthly tax liability, whichever is greater. The Department of Revenue sets the exact figure — confirm it on your licensing notice.

You need this bond if you are

Applying for an AL motor fuel distributor license through the Department of Revenue
Buying taxable fuel for resale from a licensed terminal supplier
Renewing a distributor license and the Department reset your bond amount
Posting an additional bond after a change in your average monthly liability

Five minutes, issued on the spot.

Submit the application with the bond amount the Department set — the executed bond is generated instantly, ready to file.

Start the application →
FAQs

Common questions.

If yours isn't here, the bond team can usually answer within the hour.

How much is the Alabama fuel tax distributor bond? +
The premium is a flat 3% of the bond amount, $275 minimum. The amount is at least $2,000, or roughly twice your average monthly tax liability if greater. A $2,000 bond lands at our $275 minimum; the premium scales up from there.
How is the bond amount calculated? +
Under §40-17-335, a distributor’s bond is the greater of $2,000 or approximately two times the average monthly tax liability. The Department of Revenue sets the exact figure on your licensing notice.
Is there a credit check? +
No — the distributor bond is issued with no credit pull. Larger bond amounts may get a quick soft-pull review, which never affects your credit score.
How is a distributor different from a supplier? +
A supplier holds fuel at a terminal and removes it across the rack; a distributor buys that taxable fuel for resale. They are separate license types with different bond-sizing rules — a distributor’s floor is $2,000, a supplier’s is tied to twice monthly liability.
Where do I file it? +
With the Alabama Department of Revenue, Motor Fuels section, as part of your distributor license application. We issue the executed bond ready to submit.
Related bonds

Other New York bonds.

Distributor bond, issued today.

Five-minute application, flat 3%, $275 minimum. Enter the amount the Department set and file the same day.

Your premium @ 3%$300
Apply now →