Kentucky watercraft fuel refund bonds.
$100 flat.
Kentucky lets a watercraft (marine) fuel seller claim a refund of the motor fuels tax on fuel sold for use in boats — and the Department of Revenue conditions that refund permit on a $1,000 surety bond under KRS 138.344 to 138.355. Ours is $100 flat, and this fixed bond issues fast.
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How much does a Kentucky watercraft fuel refund bond cost?
$100 at the $1,000 amount, the same for every applicant.
Three steps. One sitting.
Small fixed-amount tax bonds are the simplest thing in surety. Here's the entire process:
Apply online
Business details and an effective date. That is the application. No credit check.
Pay & e-sign
Fixed-amount bonds like this are among the thousands of bond types that issue right after purchase.
File with the Department of Revenue
Your executed bond arrives by email, ready to file with your motor fuels watercraft refund permit application. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
Kentucky taxes gasoline and special fuels at the pump, then lets certain users claim a refund of that tax when the fuel is used off-highway — including fuel sold through a public boat dock for use in watercraft. To get a refund permit, the Department of Revenue requires a $1,000 surety bond under KRS 138.344 to 138.355.
The bond guarantees that the permit holder will faithfully comply with the refund statutes — and protects the state if a refund is claimed and paid that the permit holder was not entitled to. It is a three-party arrangement: you (the principal), the surety carrier, and the Kentucky Department of Revenue (the obligee).
It is not insurance for you — if the Department recovers an improper refund against the bond, you repay the surety. For most marine fuel sellers the bond is a small, fixed formality that lets the refund money flow.
You need this bond if you're
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 $1,000 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; a longer term is the same price per year, chosen at checkout.
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. Your executed bond arrives by email, ready to file with your motor fuels watercraft refund permit application. Wet-ink original mailed on request.
What sets the price
The premium is fixed at $100 at the $1,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
No credit check.
One application, issued instantly.
These are the actual issuing fields. No credit check.
Start the application →Common questions.
Other Kentucky bonds.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
Watercraft refund bond, issued today.
$100 flat, no credit check, bond often issued in the same sitting. Free until issued.