Motor Fuel, Motor Carrier, Tobacco Products License or Motor Fuel Eligible Purchaser Surety Bond
Wholesalers and unclassified acquirers of tobacco products. Required when: Required as a condition precedent to the granting or renewal of a tobacco products tax license. Exemptions: Secondary wholesalers, vending machine operators, and transporters are generally not required to provide a bond unless specifically requ…
Overview
What it is.
Wholesalers and unclassified acquirers of tobacco products. Required when: Required as a condition precedent to the granting or renewal of a tobacco products tax license. Exemptions: Secondary wholesalers, vending machine operators, and transporters are generally not required to provide a bond unless specifically requ…
Who usually needs it
Wholesalers and unclassified acquirers of tobacco products.
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.
StateMIBond amountThe amount is determined by the Department of Treasury, but it cannot exceed th…Term lengthContinuousObligeeMichigan Department of TreasuryRenewalThe bond remains in effect until cancelled by the surety with 60 days' written notice. The department may review and adjust the bond amount annually during the license renewal process based on tax liability.Bond classTax BondCategoryRetail & SalesBondMotor Fuel, Motor Carrier, Tobacco Products License or Motor Fuel Eligible Purchaser Surety BondStatutory referenceMCL 205.423(6)JurisdictionState
