AL permissive supplier fuel bonds.
From $100. Enter your amount.

A permissive supplier — an out-of-state supplier who elects to collect Alabama’s motor fuel tax on fuel destined for Alabama — posts a bond with the Department of Revenue, sized at roughly twice the average monthly tax liability (capped at $2 million). Enter the figure and we issue it — priced at 1% of the bond amount, $100 minimum, your exact price at the 60-second application. The application collects no credit information.

Required for a permissive supplier’s license under Code of Alabama §40-17-335
Amount is about 2× your average monthly tax liability — capped at $2,000,000
1% of the bond amount, $100 minimum — enter the required amount and see your exact price
1% rate$100 minimumExactprice at the applicationSoft pullnever a hard inquiry
Trusted by industry leaders
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Apply to filed in one sitting.

Enter your amount, pay, and file with the Department of Revenue. Larger bonds may get a quick review — 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 OR 48 HRS

Issued or quickly reviewed

Smaller amounts issue on payment. Large permissive supplier bonds may get a quick underwriter review within 48 hours.

SAME DAY

File with the Department of Revenue

Submit the executed bond with your permissive supplier license election. Wet-ink originals mailed whenever the Department insists.

About this bond

What it is and who needs it.

What the permissive supplier bond actually covers

Under Alabama’s Terminal Excise Tax Act (Code of Alabama Title 40, Chapter 17, Article 12), an out-of-state supplier can elect to collect Alabama’s motor fuel tax on fuel it sells for import into Alabama — that election makes it a permissive supplier. Choosing to collect the tax means the state requires a bond standing behind it.

Under §40-17-335, the permissive supplier bond is set at approximately twice the average monthly tax liability, not to exceed $2 million — the same sizing rule as the in-state supplier. It is a three-party arrangement: you (the principal), the surety carrier, and the Department of Revenue (the obligee).

It is not insurance for you — if the surety pays the state, you repay the surety. We issue the amount the Department named — premiums from $100, exact price at the application. The application collects no credit information; large amounts may get a quick soft-pull review that never affects your score.

Code of Alabama §40-17-335Under Code of Alabama §40-17-335, a permissive supplier — a supplier who elects to collect Alabama tax on fuel destined for Alabama from outside the state — posts a bond set at approximately twice the average monthly tax liability, not to exceed $2,000,000, the same as a supplier or terminal operator. The Department of Revenue sets the exact figure.

You need this bond if you are

An out-of-state supplier electing to collect Alabama motor fuel tax
Selling fuel destined for Alabama and choosing permissive supplier status
Renewing a permissive supplier election and the Department reset your bond amount
Posting an additional bond after a change in your average monthly liability

Five minutes, then issued or quickly reviewed.

Submit the application with the bond amount the Department set — smaller amounts issue instantly, large bonds may get a 48-hour review.

Start the application →
FAQs

Common questions.

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

What is a permissive supplier?
An out-of-state supplier who voluntarily elects to collect Alabama’s motor fuel tax on fuel destined for Alabama, rather than leaving collection to the in-state importer. The election triggers the bond requirement under §40-17-335.
How much is the bond?
The premium is 1% of the bond amount, $100 minimum. The amount is set by the Department of Revenue at roughly twice your average monthly tax liability, capped at $2 million. Enter that figure and your exact price appears at the 60-second application.
Is there a credit check?
The application collects no credit information on standard amounts. Large bonds tied to high monthly liability may get a quick soft-pull review, which never affects your credit score.
How is this different from the regular supplier bond?
Same sizing rule and same statute — the difference is the role. A supplier holds fuel at an Alabama terminal; a permissive supplier is out-of-state and elects to collect Alabama tax on Alabama-bound fuel. We write both.
Where do I file it?
With the Alabama Department of Revenue, Motor Fuels section, alongside your permissive supplier election. We issue the executed bond ready to submit.
Related bonds

Other Alabama bonds.

Permissive supplier bond, issued today.

Five-minute application, premiums from $100 — your exact price appears at the 60-second application. Enter the amount the Department set and file the same day.

Your premiumfrom $100
Apply now →