Alabama fuel tax supplier bonds.
From $100.
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 — priced at 1% of the bond amount, $100 minimum, your exact price at the application.
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How much does an Alabama fuel tax supplier 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 supplier 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 or quickly reviewed
Smaller amounts issue on payment. Large supplier bonds (tied to high monthly liability) may get a quick underwriter review within 48 hours.
File with the Department of Revenue
Submit the executed bond with your supplier license application. Wet-ink originals mailed whenever the Department insists.
What it is and who needs it.
What the supplier bond actually covers
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 — premiums from $100, exact price at the application. No credit check up to $10,000. Above that, the carrier may run a soft pull, which never affects your score.
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 supplier license application. Wet-ink originals mailed whenever the Department insists.
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, then issued or quickly reviewed.
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 →Common questions.
Other Alabama bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Supplier bond, issued today.
Premiums from $100 — your exact price appears at the application. Enter the amount the Department set and file the same day.