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Illinois motor fuel distributor bonds.
From $100.

To hold a motor fuel distributor license in Illinois, you file a bond with the Department of Revenue under the Motor Fuel Tax Law. The Department sets the amount from your expected fuel tax — the bond prices at 1% of the bond amount, $100 minimum, set by the amount you need, not a credit tier. Enter the figure on your notice and see your exact price.

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Required for a motor fuel distributor license under the Motor Fuel Tax Law (35 ILCS 505)
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Amount set by the Department of Revenue — up to twice your monthly motor fuel tax on expected volume
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1% of the bond amount, $100 minimum — enter the required bond amount and see your exact price at the application
1% of bond amount$100 minimumNo credit check up to $10,000above that, a soft pull at most, never a hard inquiryFastinstant issuance for most
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
Price

How much does an Illinois motor fuel distributor bond cost?

1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.

How it works

Three steps. 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 · ONLINE

Apply online

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

INSTANTLY

Issued on the spot

No credit check up to $10,000 — the executed bond is generated as soon as you pay, priced at 1% of the bond amount with a $100 minimum. Above $10,000, a soft pull may add a short review.

SAME DAY

File with the Department of Revenue

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

About this bond

What it is and who needs it.

What the distributor bond actually covers

Illinois taxes motor fuel through the Motor Fuel Tax Law (35 ILCS 505), administered by the Department of Revenue. A licensed distributor sells, distributes, or uses motor fuel and is responsible for the tax — so the license is conditioned on a surety bond standing behind that tax.

The Department fixes the bond amount case by case, taking into account the fuel the applicant expects to sell, distribute, export, and use. By statute the penalty cannot exceed twice the monthly amount that would be collectible as tax on all of that fuel.

The bond backs the motor fuel tax you collect or owe — if you fail to remit, the state can recover against it. If the surety pays a claim, you repay the surety. We issue the amount the Department set, with premiums starting from $100 and no credit check up to $10,000 in the application, on the form the Department names.

35 ILCS 505 (Motor Fuel Tax Law)Under the Illinois Motor Fuel Tax Law (35 ILCS 505), a distributor license is conditioned on a surety bond. The Department of Revenue fixes the penalty based on the fuel the applicant expects to sell, distribute, export, and use, and the amount may not exceed twice the monthly tax collectible on that fuel. Confirm the amount on your Department of Revenue notice.

You need this bond if you are

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Applying for a motor fuel distributor license with the Department of Revenue
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Renewing your distributor license and your current bond is expiring or non-renewing
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Increasing your fuel volume so the Department raises your required bond amount
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Reinstating a license after a lapse that reset your bond requirement
After you buy

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 motor fuel distributor 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, issued on the spot.

Submit the application with the bond amount the Department set — no credit check up to $10,000, and the executed bond is generated instantly for most applicants, ready to file with the Department of Revenue.

Start the application →
FAQ

Common questions.

How much is the Illinois motor fuel distributor bond?This bond prices at 1% of the bond amount, with a $100 minimum. The amount itself is set by the Department of Revenue from your expected fuel volume, capped at twice your monthly motor fuel tax. Enter the figure on your notice and see your exact price at the application.
Who sets the bond amount?The Illinois Department of Revenue. It considers the fuel you expect to sell, distribute, export, and use, and the penalty cannot exceed twice the monthly tax collectible on that fuel.
Is there a credit check?No credit check up to $10,000. Above that, the carrier may run a soft pull, which never affects your score. Pricing is 1% of the bond amount, $100 minimum — set by the amount, not a credit tier.
What is the difference between distributor, supplier, and receiver?They are separate license roles in the Illinois fuel-tax chain, each with its own bond. We write all three with the same from-$100 pricing — pick the bond that matches the license the Department issued you.
What does the bond guarantee?The motor fuel tax you collect or owe. If you fail to remit, the state can recover against the bond — and if the surety pays, you repay the surety. It is a guarantee to the state, not insurance for you.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
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Price and requirements checked on the carrier’s application, . Page updated .

Distributor bond, issued today.

From $100. Enter the amount the Department set and file the same day.

Your premiumfrom $100
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