Surety Bond Encyclopedia

Gasoline Fuel Tax (Distributor) Bond - Jefferson County, AL in Alabama

Brief Summary

Distributors who owe Jefferson County's local gasoline tax post this bond with the county, not the state. It sits beside your Alabama Department of Revenue motor fuel bond rather than replacing it, and it lets you remit the county tax without putting up a cash deposit.

Jefferson County levies its own county gasoline tax, collected by the Jefferson County Department of Revenue and shared with the county and its cities. Distributors responsible for that tax post a gasoline fuel tax bond guaranteeing they will report and pay it. This bond is separate from the bond the Alabama Department of Revenue requires for a state motor fuel license.

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How to Apply for a Gasoline Fuel Tax (Distributor) Bond:

Hold your Alabama Department of Revenue motor fuel license and its state bond.
Contact the Jefferson County Department of Revenue to confirm the bond amount and form for your account.
Apply for the bond and pay the premium.
File the executed bond with the Jefferson County Department of Revenue.
Keep the bond in force while you remit the county gasoline tax.

Detailed Information About the Alabama Gasoline Fuel Tax (Distributor) Bond:

A county tax with its own bond

Jefferson County's gasoline tax is not on the Alabama Department of Revenue's list of state administered county fuel taxes. The Jefferson County Department of Revenue collects it, and its monthly distribution reports show the proceeds being divided among the County Treasurer and more than two dozen cities and towns. Because the county collects the tax, the county is the party this bond protects.

Not the same as your state bond

The Alabama Department of Revenue requires a distributor to post a bond equal to the greater of $2,000 or twice average monthly tax liability for the state motor fuel license. That bond protects the state. A distributor selling into Jefferson County still needs the county bond for the county tax.

What the bond guarantees

The bond promises the Jefferson County Department of Revenue that the distributor will file its county gasoline tax returns and pay the tax when due. If the distributor fails to pay, the County can recover from the surety, and the surety then looks to the distributor for repayment. The bond amount is set by the county, so confirm the required amount, current form and filing steps with the Jefferson County Department of Revenue at 716 Richard Arrington Jr. Boulevard North, Birmingham, (205) 325-5300, before the bond is issued.

Eligibility and Requirements for a Alabama Gasoline Fuel Tax (Distributor) Bond:

Jefferson County Department of Revenue as the collecting agency and obligee.
Bond amount as set by the county for your account.
Surety company authorized to do business in Alabama.
Legal business name on the bond matching your county tax account.
Financial review of the distributor, since this bond guarantees tax payments.

Alabama Gasoline Fuel Tax (Distributor) Bond FAQs:

My Alabama motor fuel bond is already on file. Is that enough?

No. The state bond secures state motor fuel tax. Jefferson County collects its own gasoline tax and requires its own bond.

How much is the bond?

The county sets the amount. Confirm it with the Jefferson County Department of Revenue before the bond is written.

How is the premium set?

Tax bonds are underwritten on the distributor's financial strength and the owners' credit, because the surety is guaranteeing tax payments. You get a firm quote after review.