Surety Bond Encyclopedia

Fuel Tax - Motor Fuel Bond - Statewide in Florida

Brief Summary

Florida does not hand you a flat motor fuel bond amount. You build it from your own gasoline gallons on Form DR-157W, three months of state and local option tax with a $300,000 ceiling, and the executed DR-157 goes to the Department of Revenue with your DR-156 license application. Paying a bond premium keeps that money in the business instead of tied up in a time deposit.

Terminal suppliers, wholesalers, importers and exporters of motor fuel must file a bond before the Florida Department of Revenue will issue a license under section 206.02, Florida Statutes. Section 206.05 sets the amount at approximately 3 times the combined average monthly state and local option motor fuel tax, never more than $300,000. Licenses run January 1 through December 31 and are renewed every year.

We can help with all Florida bonds!

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

Choose your license type on Form DR-156: terminal supplier, wholesaler, importer or exporter.
Estimate average monthly motor fuel gallons on Form DR-157W, using Table A1 if you hold Electronic Funds Transfer authority and Table A2 if you do not.
Multiply the monthly tax by 3 and cap the result at $300,000 to reach the bond amount.
Have the surety execute Form DR-157 with the motor fuel box checked.
Send DR-156, DR-157W and the bond to the Account Management Fuel Unit, Florida Department of Revenue, PO Box 5500, Tallahassee FL 32314-5500, or submit the application and worksheet by email.
Clear the background investigation the Department runs on fuel license applicants.
Renew the license each year, since it is valid January 1 through December 31.

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

The amount is a calculation, not a set figure

Section 206.05, Florida Statutes, sets the bond at approximately 3 times the combined average monthly motor fuel tax and local option tax paid or due during the preceding 12 calendar months, and never more than $300,000. A new applicant has no 12 month history, so the Department of Revenue's Form DR-157W has you estimate average monthly gallons, multiply by the applicable tax rate, then multiply by 3. Local option rates differ by county and are published each year in the Department's Tax Information Publications.

Gasoline and diesel are bonded separately

The DR-156 application states that a separate bond is required for each product type. A wholesaler selling both files a motor fuel bond under section 206.05 and a diesel bond under section 206.90. Form DR-157 has a box for each product, and this bond is the one with the motor fuel box checked.

Who files and who does not

Terminal suppliers, wholesalers, importers and exporters post the bond. Municipalities, counties, school boards, state agencies, federal agencies and special districts are exempt under section 206.05, and Form DR-157W shows no bond for blenders, mass transit providers, petroleum carriers or terminal operators. Exporters bond at 3 times the average monthly tax due on gallons acquired for export. Importers also post the importer's bond under section 206.051, sized at 60 days of tax liability with no cap.

After the license issues

If the Department decides the bond no longer covers your liability, it can demand an additional bond in writing, and failing to file it leads to cancellation of the license. A surety that wants off the bond files a written request and is discharged from liability accruing after 60 days. Section 206.05 also allows an assigned time deposit or irrevocable letter of credit in place of a surety bond.

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

The State of Florida as obligee, through the Florida Department of Revenue.
A surety duly licensed to do business in Florida.
Bond of approximately 3 times average monthly motor fuel and local option tax, not more than $300,000.
A separate bond from any diesel fuel bond the business also holds.
No registration fee for the fuel license itself.
Electronic filing and payment of returns for terminal suppliers, wholesalers, importers and exporters.

Florida Fuel Tax - Motor Fuel Bond FAQs:

Is there a minimum motor fuel bond in Florida?

Section 206.05 sets a ceiling of $300,000 but no floor. The amount follows your gallons and the tax rates where you sell. If your volume grows, the Department can demand an additional bond in writing.

I sell gasoline and diesel. Will one bond cover both?

No. Form DR-156 requires a separate bond for each product type. Motor fuel is bonded under section 206.05 and diesel under section 206.90.

How is the bond figured if we are just starting out?

Use Form DR-157W. Estimate average monthly gallons, multiply by the applicable state and local option tax rate, then multiply by 3. Stop at $300,000. Attach the completed worksheet to the license application.

Can we post cash or a letter of credit instead?

Yes. Section 206.05 allows an assigned time deposit or irrevocable letter of credit in lieu of a surety bond, and the Department publishes a cash bond form, DR-157B. A surety bond avoids locking up that cash for as long as you hold the license.

How does the surety get off the bond?

The surety files a written request with the Department of Revenue and is discharged from liability accruing after 60 days. The license is cancelled if a replacement bond is not supplied.