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.
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.