Motor Carrier Refund Bond - Statewide in Connecticut

Brief Summary

Without this bond, the Department of Revenue Services must audit your records before it can approve a motor carrier road tax refund. With it in force, the Commissioner may order your refunds without auditing first. For a carrier that buys a lot of Connecticut fuel and regularly runs a credit balance, that can mean getting money back sooner, all for a bond the statute caps at $10,000.

The Connecticut Motor Carrier Refund bond is the bond a motor carrier may give under C.G.S. 12-481, payable to the State of Connecticut and set by the Commissioner of Revenue Services at not less than $1,000 or more than $10,000. It guarantees payment of motor carrier road tax, and while it is in force the Commissioner may order refunds to the carrier without first auditing its records.

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How to Apply for a Motor Carrier Refund Bond:

• Register with DRS for motor carrier road tax through myconneCT if you have not already.
• Ask DRS what bond amount the Commissioner will accept, between $1,000 and $10,000.
• Have the legal business name and Connecticut tax registration number exactly as DRS has them.
• Complete the bond application and provide owner information for the credit review.
• Pay the premium and file the executed bond with the Department of Revenue Services.
• Keep filing verified refund requests within one year of each quarter's due date.

Detailed Information About the Connecticut Motor Carrier Refund Bond:

Why carriers post it

Under C.G.S. 12-480, a motor carrier earns a credit for Connecticut fuel tax paid on fuel bought in the state. When a quarter's credit is larger than the tax owed for that quarter, the carrier can carry it forward against any of the next four quarters or ask for a refund. The catch is that the Commissioner may not approve a refund until the carrier's records have been audited.

C.G.S. 12-481 offers a way around that wait. A carrier may give a bond, and while the bond is in force the Commissioner may order refunds for amounts appearing due on refund applications without first auditing the carrier's records. The bond is optional under the statute. Carriers choose it to speed up refunds.

Amount and terms

The bond is written by a surety company authorized to issue bonds in Connecticut, payable to the State of Connecticut, and in an amount satisfactory to the Commissioner of Revenue Services between $1,000 and $10,000. It is conditioned on payment of all motor carrier road taxes due and to become due from the bond date until the carrier or surety notifies the Commissioner that it is cancelled.

What the surety is on the hook for

The surety is liable for omitted taxes later assessed against the carrier, with penalties and interest, even if the assessment comes after cancellation, as long as the tax came due while the bond was in force.

Deadlines that still apply

The bond does not extend the refund deadline. A refund request must be filed within one year after the due date of the quarter, verified and supported by evidence the Commissioner requires. Confirm the current bond form and filing steps with the DRS before the bond is issued.

Eligibility and Requirements for a Connecticut Motor Carrier Refund Bond:

• A surety company authorized to issue bonds in Connecticut.
• Bond payable to the State of Connecticut.
• Penal sum set by the Commissioner of Revenue Services, not less than $1,000 or more than $10,000.
• Condition that the carrier pays all motor carrier road taxes due under chapter 222.
• Bond stays in force until the carrier or surety notifies the Commissioner of cancellation.

Connecticut Motor Carrier Refund Bond FAQs:

Official and Additional Resources for the Connecticut Motor Carrier Refund Bond: