Indiana Motor Fuel Supplier Bond

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.

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.

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.