The Indiana Motor Fuel Supplier Bond guarantees that motor fuel distributors and suppliers will properly collect and pay motor fuel excise taxes to the state. The bond amount is calculated based on estimated tax liability (typically 2-3 months of estimated taxes) with a minimum of $2,000, protecting the state against …
Overview
What it is.
The Indiana Motor Fuel Supplier Bond guarantees that motor fuel distributors and suppliers will properly collect and pay motor fuel excise taxes to the state. The bond amount is calculated based on estimated tax liability (typically 2-3 months of estimated taxes) with a minimum of $2,000, protecting the state against …
Who usually needs it
Motor fuel suppliers, distributors, and permissive suppliers who distribute gasoline or special fuel in Indiana and are required to collect and remit motor fuel excise taxes to the Indiana Department of Revenue
Pricing & timing
What to expect.
Generic pricing
Tax bonds guarantee payment of taxes or compliance with tax regulations. Typical Pricing:. • Standard tax bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Credit check: Required for most tax bonds. Common types include sales tax bonds, fuel tax bonds, and cigarette/tobacco tax bonds. Quick approval is typical for applicants with good credit. Some tax bonds…
Typical timeframe
Credit-based approval — typically 1–2 business days
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateINBond amount$2,000ObligeeIndiana Department of RevenueBond classTax BondCategoryRetail & SalesBondIndiana Motor Fuel Supplier BondPlain descriptionThe Indiana Motor Fuel Supplier Bond guarantees that motor fuel distributors and suppliers will properly collect and pay motor fuel excise taxes to the state. The bond amount is calculated based on estimated tax liabili…Who needs this bondMotor fuel suppliers, distributors, and permissive suppliers who distribute gasoline or special fuel in Indiana and are required to collect and remit motor fuel excise taxes to the Indiana Department of Revenue
FAQ
Common questions.
How is the Indiana Motor Fuel Supplier Bond amount calculated?
The bond amount varies by license type and is based on estimated motor fuel tax liability. For Special Fuel Suppliers, the bond must cover 2 months of estimated tax liability (calculated as Total Annual Gallons ÷ 6 × $0.61 tax rate, rounded to nearest $1,000) with a $2,000 minimum. For Special Fuel Permissive Suppliers, the bond covers 3 months of estimated tax liability, also with a $2,000 minimum. For Gasoline Distributors, the bond is calculated as Total Annual Taxable Gallons ÷ 4 × current gasoline tax rate, minimum $2,000 (rounded to nearest $1,000). Most suppliers start with the $2,000 minimum bond amount.
Who needs an Indiana Motor Fuel Supplier Bond?
You need this bond if you are applying for a Special Fuel Supplier License, Special Fuel Permissive Supplier License, or Gasoline Distributor License with the Indiana Department of Revenue. This includes businesses that distribute gasoline or special fuel (diesel) in Indiana and are responsible for collecting and remitting motor fuel excise taxes to the state. The bond is required under Indiana Code IC 6-6-1.1-406 and related fuel tax statutes.
What happens if I fail to pay motor fuel taxes in Indiana?
If you fail to file required motor fuel tax reports or pay the excise taxes owed, the Indiana Department of Revenue can file a claim against your surety bond. The surety company will investigate the claim and may pay valid claims up to the bond amount (minimum $2,000, but often higher based on your estimated tax liability). You are then required to reimburse the surety for all amounts paid, including the unpaid taxes, penalties, and interest. Failure to maintain a valid bond can result in license suspension or revocation.
