Motor Vehicle Fuels Exporter Bond - Statewide in Connecticut

Brief Summary

Connecticut caps the fuels exporter bond at $25,000 by statute. It backs the permit that lets an out of state distributor buy fuel in Connecticut tax free for export. We write it to the Commissioner of Revenue Services in the amount DRS sets for your permit.

Under CGS 12-458a, a person not licensed as a Connecticut fuel distributor can buy fuel tax free for export after getting a permit from the Commissioner of Revenue Services, provided it holds a distributor's license in the state the fuel is going to. As a condition of the permit the commissioner may require a corporate surety bond or other acceptable security of not more than $25,000. Exporters register with DRS on Form REG-1 Addendum C.

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How to Apply for a Motor Vehicle Fuels Exporter Bond:

• Hold a valid distributor's license in the state the fuel will be transferred into.
• Register as a Motor Vehicle Fuels Exporter with DRS on Form REG-1 Addendum C, listing the destination state and your license number there.
• Ask the DRS Excise Taxes Unit what bond amount applies to your permit. The statute caps it at $25,000.
• Provide company and owner information for underwriting.
• Pay the premium and receive the executed bond naming the Commissioner of Revenue Services.
• Deliver the bond to DRS so the export permit can issue.

Detailed Information About the Connecticut Motor Vehicle Fuels Exporter Bond:

Who this bond is for

DRS Form REG-1 Addendum C describes a Motor Vehicle Fuels Exporter as any person exporting diesel fuel, jet fuel, propane, natural gas, gasoline, aviation gas or gasohol. CGS 12-458a covers the person who is not licensed as a distributor in Connecticut under section 12-456 but wants to buy fuel here for export without paying the Connecticut tax. That person needs a permit from the Commissioner of Revenue Services and must hold a valid distributor's license issued by the state the fuel is transferred into. The registration form asks for the destination state and your distributor's license number in that state.

How much the bond is

CGS 12-458a lets the commissioner require a corporate surety bond or other security acceptable to the commissioner in an amount not greater than $25,000. DRS sets the figure for your permit within that cap. The bond backs the exporter's compliance with the regulations the commissioner prescribes for the permit, which can include filing reports.

Registering with DRS

Form REG-1 Addendum C covers motor vehicle fuels registrations, including the exporter type, and states that there is no fee to register. It also notes that motor vehicle fuels registrants may have to provide additional information and post a surety bond. The DRS Excise Taxes Unit handles these registrations at 860-541-3224.

Confirm the current bond amount, bond form and filing steps with the DRS Excise Taxes Unit before the bond is issued.

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

• Commissioner of Revenue Services as obligee under CGS 12-458a.
• Bond amount set by the commissioner, not greater than $25,000.
• A valid distributor's license in the destination state.
• A DRS permit to purchase fuel tax free for export.
• Compliance with the commissioner's permit regulations, including required reports.

Connecticut Motor Vehicle Fuels Exporter Bond FAQs:

Official and Additional Resources for the Connecticut Motor Vehicle Fuels Exporter Bond: