Virginia fuel alcohol provider bonds.
From $100.
A fuel alcohol provider, a producer or importer of fuel-grade ethanol or methanol, must be licensed by the Virginia DMV and post tax security. Under § 58.1-2211 the bond is three times your average expected monthly tax liability, $2,000 to $300,000, on form FT462 only. Premiums cost 0.75% of the bond amount, $100 minimum.
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How much does a Virginia fuel alcohol provider bond cost?
0.75% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
There is no underwriting queue for standard fuels tax security — enter your amount, pay, and file with DMV. Here is the whole thing:
Apply online
Your business details, the county you operate from, the security amount DMV set, and an effective date — that is the application.
Issued on the spot
No credit check up to $10,000, and pricing runs 0.75% of the bond amount from a $100 minimum — the executed bond generates as soon as you pay. Amounts near the $300,000 ceiling can get a quick look first.
File with Virginia DMV
Your bonding company files the Fuels Tax Bond, form FT462, with DMV — only that form is accepted. We issue it executed and ready, and mail a wet-ink original whenever DMV insists on one.
What it is and who needs it.
What the fuel alcohol provider bond actually covers
Virginia taxes motor fuel under the Virginia Fuels Tax Act (Code of Virginia, Title 58.1, Chapter 22) and administers it through the Department of Motor Vehicles rather than the Department of Taxation. Section 58.1-2201 defines fuel alcohol as methanol or fuel-grade ethanol, and a fuel alcohol provider as a person who either produces it or imports it outside the terminal transfer system by marine vessel, transport truck, tank wagon, or railroad tank car.
Because a provider handles taxable product before it reaches a terminal rack, DMV requires tax security as a condition of the license. Section 58.1-2211 places a fuel alcohol provider who is neither a position holder nor a two-party exchange recipient in the variable tier: security equal to three times the applicant’s average expected monthly tax liability as the Commissioner determines it, subject to a $2,000 floor and a $300,000 ceiling. That is the same tier occasional importers, distributors, blenders, and aviation consumers sit in. Position-holder suppliers, terminal operators, bonded importers, and permissive suppliers sit in the fixed $2 million tier instead.
The security stands behind everything Chapter 22 asks of you — filing accurate and timely reports, and paying the fuels taxes, penalties, fines, returned-check fees, attorney fees, and interest that attach to them. A certificate of deposit assigned to DMV on form FT459 is the statutory alternative if you would rather tie up cash. And where a licensee holds several licenses in the same group, the combined security is still capped at $300,000, so the maximums do not stack.
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 Virginia DMV. Your bonding company files the Fuels Tax Bond, form FT462, with DMV — only that form is accepted. We issue it executed and ready, and mail a wet-ink original whenever DMV insists on one.
What sets the price
The premium is 0.75% 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 security amount DMV set — the executed bond generates as soon as you pay, ready to file on form FT462.
Start the application →Common questions.
Other Virginia bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Fuel alcohol license, one filing away.
Pricing from $100 at a rate of 0.75% of the bond amount. Enter the amount DMV set and file form FT462 the same day. Free until issued.