This bond ensures motor fuel suppliers and distributors pay Illinois motor fuel taxes on time. The bond amount ranges from $1,000 minimum to twice the average monthly tax liability, calculated based on your fuel handling volumes and tax exposure. You must obtain this bond before the Illinois Department of Revenue will…
Overview
What it is.
This bond ensures motor fuel suppliers and distributors pay Illinois motor fuel taxes on time. The bond amount ranges from $1,000 minimum to twice the average monthly tax liability, calculated based on your fuel handling volumes and tax exposure. You must obtain this bond before the Illinois Department of Revenue will…
Who usually needs it
Motor fuel suppliers, distributors, receivers, or blenders operating in Illinois who import, produce/refine, store 30,000+ gallons in bulk for distribution by tank car/truck, or export motor fuel. Required before licensure with the Illinois 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.
StateILBond amount$1,000ObligeeIllinois Department of RevenueBond classTax BondCategoryCustoms & TradeBondMotor Fuel Supplier / Distributor BondPlain descriptionThis bond ensures motor fuel suppliers and distributors pay Illinois motor fuel taxes on time. The bond amount ranges from $1,000 minimum to twice the average monthly tax liability, calculated based on your fuel handlin…Who needs this bondMotor fuel suppliers, distributors, receivers, or blenders operating in Illinois who import, produce/refine, store 30,000+ gallons in bulk for distribution by tank car/truck, or export motor fuel. Required before licens…
FAQ
Common questions.
How is the bond amount determined for the Illinois Motor Fuel Supplier/Distributor Bond?
The Illinois Department of Revenue determines your bond amount after reviewing Form REG-8-A (Motor Fuel and Other Fuel Information). The bond amount ranges from a minimum of $1,000 to a maximum of twice your average monthly tax liability, calculated based on your estimated fuel sales, tax-free distributions, and gallons handled. Businesses with higher fuel volumes and greater tax exposure will require larger bond amounts.
What forms do I need to apply for the Illinois Motor Fuel Supplier/Distributor Bond?
You must submit Form REG-1 (Illinois Business Registration Application) and Form REG-8-A (Motor Fuel and Other Fuel Information) to the Illinois Department of Revenue. After reviewing your application, IDOR will notify you of the required bond amount. You can then obtain either an insurance bond (Form REG-4-A) or an irrevocable letter of credit (Form REG-4-D) to fulfill the bonding requirement. No license or registration fee is required.
Who needs to get an Illinois Motor Fuel Supplier/Distributor Bond?
You need this bond if you are a motor fuel supplier, distributor, receiver, or blender in Illinois who imports motor fuel, produces or refines motor fuel, stores 30,000 gallons or more in bulk for distribution by tank car or truck, or exports motor fuel. The bond is required before the Illinois Department of Revenue will issue your motor fuel distributor license and must be maintained continuously while you are licensed.
