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 $275, our minimum premium, and this fixed bond issues fast.
















Small fixed-amount tax bonds are the simplest thing in surety. Here's the entire process:
Business details and an effective date. That is the application — no financials, no credit check section.
Fixed-amount bonds like this are among the thousands of bond types that issue right after purchase. At most, 1–2 business days.
Your executed bond arrives by email, ready to file with your motor fuels watercraft refund permit application. Wet-ink original mailed on request.
$1,000 bond × 3% = $30, which is below our $275 minimum, so the premium is $275 per term. Fixed amount, fixed price.
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.
These are the actual issuing fields — no credit check section, because this bond doesn't have one.
Start the application →If yours isn't here, the bond team can usually answer within the hour.
$275 flat, five-minute application, bond often issued in the same sitting. Free until issued.