A licensed supplier under Alabama’s Terminal Excise Tax Act posts a bond with the Department of Revenue, sized to roughly twice the average monthly tax liability (capped at $2 million). The Department sets the figure — enter it and we issue the bond at a flat 3% with no credit check.
















Enter your amount, pay, and file with the Department of Revenue. Larger supplier bonds may get a quick review — here is the whole thing:
Your business details, the bond amount the Department set, and the effective date — that is the entire application.
Smaller amounts issue on payment. Large supplier bonds (tied to high monthly liability) may get a quick underwriter review within 48 hours.
Submit the executed bond with your supplier 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 supplier — a position holder at a terminal who removes fuel across the rack — collects the excise tax and remits it to the Department of Revenue, so the state requires a bond standing behind that tax.
Under §40-17-335, a supplier’s bond is set at approximately twice the average monthly tax liability, not to exceed $2 million. The bond is a three-party arrangement: you (the principal), the surety carrier, and the State of Alabama / Department of Revenue (the obligee). If a supplier 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; large amounts tied to high monthly liability may get a quick underwriter review.
Submit the application with the bond amount the Department set — smaller amounts issue instantly, large supplier bonds may get a 48-hour review.
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.