Surety Bond Encyclopedia

Motor Vehicle Fuels Distributor Bond - Statewide in Connecticut

Brief Summary

There is no fixed price tag on this bond in Connecticut law. The Commissioner of Revenue Services sets the amount for each distributor, and the bond has to be on file before the license issues and refiled every year. Ask DRS for your figure first, then get the bond written to match it so your license is not held up.

Connecticut requires every licensed motor vehicle fuels distributor to file a bond each year with the Commissioner of Revenue Services under C.G.S. 12-456, in an amount the Commissioner fixes. The bond, or other security the Commissioner accepts, must come from a surety authorized in Connecticut and must be filed before the distributor license is issued.

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How to Apply for a Motor Vehicle Fuels Distributor Bond:

Register with DRS and complete REG-1 Addendum C for the motor vehicle fuels distributor license.
Contact the DRS Excise Taxes Unit for the bond amount the Commissioner fixes for your business.
Have the legal business name and Connecticut tax registration number exactly as DRS has them.
Complete the bond application with owner and financial information for underwriting.
Pay the premium and file the executed bond with DRS before the license issues.
Refile the bond every year to keep the license active.

Detailed Information About the Connecticut Motor Vehicle Fuels Distributor Bond:

The Commissioner sets your amount

C.G.S. 12-456 requires each distributor to file a bond annually before the license is issued, in such amount as the Commissioner of Revenue Services may fix. The statute sets no single figure for everyone, so the amount is decided by DRS for your business. Contact the DRS Excise Taxes Unit for your required amount before ordering the bond.

The bond outlasts the year

The bond stays in effect for three years and one month after the end of the year it covers, unless the Commissioner certifies that all state taxes have been paid. That long tail is something underwriters price in, and it is why a surety reviews your tax history closely.

Who counts as a distributor

On DRS registration form REG-1 Addendum C, a motor vehicle fuels distributor is any person distributing gasoline, aviation gas, ethanol or ethanol based gasoline. Distributor status covers anyone who imports fuel into Connecticut for sale or use, produces or refines fuel in the state, distributes fuel by tank wagon in the state, or stores fuel in a container of 100,000 gallons or more. Special fuel distributors, tax paid motor vehicle fuels distributors and exporters are separate categories on the same form, so make sure you are applying for the right one.

License term and fees

The distributor license stays in effect until cancelled, suspended or revoked, but the bond is filed every year. DRS states there is no fee to register for the taxes on REG-1 Addendum C. Nonresident applicants consent to service of process through the Secretary of the State as a condition of the license.

Confirm the current bond form and filing steps with DRS before the bond is issued.

Eligibility and Requirements for a Connecticut Motor Vehicle Fuels Distributor Bond:

A surety company authorized to do business in Connecticut, or other security the Commissioner accepts.
Bond running to the Commissioner of Revenue Services under C.G.S. 12-456.
Amount fixed by the Commissioner for each distributor.
Annual filing before the license is issued.
Liability continuing three years and one month after the year ends unless all taxes are certified paid.

Connecticut Motor Vehicle Fuels Distributor Bond FAQs:

How much is the bond?

Connecticut law leaves the amount to the Commissioner of Revenue Services, who fixes it for each distributor. Get your figure from the DRS Excise Taxes Unit before the bond is written.

Do I file the bond once or every year?

Every year. C.G.S. 12-456 requires the bond to be filed annually before the license is issued, even though the license itself runs until cancelled, suspended or revoked.

I only haul diesel. Is this my license?

DRS lists special fuel distributor as a separate category from motor vehicle fuels distributor on REG-1 Addendum C. The motor vehicle fuels category covers gasoline, aviation gas, ethanol and ethanol based gasoline.

How is the premium set?

The surety prices the bond from the amount DRS fixes and its review of the company's finances, tax payment history and owners' credit. The three year and one month liability tail is part of that review.