Surety Bond Encyclopedia

Fuel Tax - Alternative Fuel Bond - Statewide in Florida

Brief Summary

Propane and compressed natural gas sold into Florida vehicles fall under the natural gas fuel rules in Chapter 206. The retailer license applies now, but the Department of Revenue marks the retailer bond as not effective until January 1, 2030, the same day the tax starts. Knowing that date lets you plan the bond on your own schedule instead of scrambling at year end 2029.

Section 206.9951, Florida Statutes, defines propane, other liquefied petroleum gas and compressed natural gas used in motor vehicles as natural gas fuel. Under section 206.9952, a natural gas fuel retailer must hold a Department of Revenue license and file a bond on the Department's form. The tax under section 206.9955 begins January 1, 2030, and Form DR-157W shows the retailer bond requirement taking effect on that date.

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How to Apply for a Fuel Tax - Alternative Fuel Bond:

Confirm you sell, produce or refine propane, other liquefied petroleum gas or compressed natural gas for use in motor vehicles.
Apply for the Retailer of Natural Gas Fuel license on Form DR-156.
Complete the background investigation required for this license type.
Estimate monthly sales in motor fuel equivalent gallons for the bond calculation.
Confirm the bond amount and form with the Account Management Fuel Unit ahead of the January 1, 2030 effective date.
Begin monthly reporting and payment of the tax on January 1, 2030.

Detailed Information About the Florida Fuel Tax - Alternative Fuel Bond:

The date that matters is January 1, 2030

Under section 206.9955, Florida Statutes, as amended in 2025, the natural gas fuel tax begins January 1, 2030. The excise portion is 2 cents per motor fuel equivalent gallon in 2030 and 4 cents from 2031, with ninth cent, local option and other state components added on top, some of them indexed each year to the Consumer Price Index. The Department of Revenue's bond worksheet, Form DR-157W, lists Retailer of Natural Gas Fuel as a license requiring a bond, with the note not effective until 1/1/2030.

What counts as natural gas fuel

Section 206.9951 defines natural gas fuel as any liquefied petroleum gas product, compressed natural gas product, or combination of them used in a motor vehicle. Propane and butane are included. Gas in separate tanks used for cooking, heating or power generation is not. A natural gas fuel retailer is any person who sells, produces or refines natural gas fuel for use in a motor vehicle.

The license comes first

Section 206.9952 makes it unlawful to act as a natural gas fuel retailer without a valid license and requires the applicant to file an application and a bond on a form the Department prescribes. Through December 31, 2029, operating without a license costs $200 for each month. From January 1, 2030, the penalty becomes 25 percent of the tax assessed on purchases made during the unlicensed period, and retailers report and pay monthly. A facility that only fills portable containers of 10 gallons or less for exempt purposes does not need the license. Applicants for this license go through the Department's background investigation.

How the amount is figured

The Department's natural gas version of the bond worksheet converts sales into motor fuel equivalent gallons, multiplies the tax on those gallons by 3 months and caps the result at $300,000. Confirm the current rate, amount and bond form with the Account Management Fuel Unit before the bond is issued.

Biodiesel manufacturers

Biodiesel manufacturers are licensed under section 206.02, and Form DR-157W shows a bond requirement for that license as well.

Eligibility and Requirements for a Florida Fuel Tax - Alternative Fuel Bond:

Florida Department of Revenue as obligee.
Retailer bond requirement shown on Form DR-157W as not effective until January 1, 2030.
Bond based on 3 months of tax on motor fuel equivalent gallons, capped at $300,000, under the Department's natural gas worksheet.
No license needed for facilities that only fill portable containers of 10 gallons or less for exempt purposes.
Separate license and bond for biodiesel manufacturers under section 206.02.

Florida Fuel Tax - Alternative Fuel Bond FAQs:

Does this cover propane autogas?

Yes. Section 206.9951 defines natural gas fuel to include any liquefied petroleum gas product used in a motor vehicle, and propane is named. Compressed natural gas is covered too.

When does the bond actually have to be in place?

Form DR-157W lists the Retailer of Natural Gas Fuel bond as not effective until January 1, 2030, which is also the day the tax begins under section 206.9955. Confirm the timing with the Department of Revenue before the bond is issued.

What if we sell without a license?

Through December 31, 2029, the penalty is $200 for each month of operation without a license. From January 1, 2030, it becomes 25 percent of the tax assessed on purchases made during the unlicensed period.

We fuel our own car from a CNG unit at home. Are we a retailer?

No. The retailer definition in section 206.9951 excludes the individual use covered by section 206.9965(5), which is fuel from a residential refueling device at a person's primary residence.