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.
















No underwriting queue for the standard distributor bond — enter your amount, pay, and file with the Department of Revenue. Here is the whole thing:
Your business details, the bond amount the Department set, and the effective date — that is the entire application.
No credit check and no waiting — the executed bond is generated as soon as you pay. Larger amounts may get a quick review.
Submit the executed bond with your distributor license application. Wet-ink originals mailed whenever the Department insists.
Bond amount × 3% = your premium, one-time, $275 minimum. Enter the figure the Department of Revenue set and the premium updates.
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.
Submit the application with the bond amount the Department set — the executed bond is generated instantly, ready to file.
Start the application →If yours isn't here, the bond team can usually answer within the hour.
Five-minute application, flat 3%, $275 minimum. Enter the amount the Department set and file the same day.