Arizona IFTA Surety Bond

In Arizona, any motor carrier that operates in Arizona and another jurisdiction that is a part of the IFTA (International Fuel Tax Agreement) is required to file an Arizona IFTA Surety Bond. This bond is a type of surety bond that guarantees that the motor carrier will comply with all applicable IFTA laws and regulations.

The required bond amount is determined by the Arizona Department of Transportation (ADOT) based on the motor carrier’s fuel tax liability. The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get an Arizona IFTA Surety Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Surety Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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What is the IFTA?

IFTA stands for International Fuel Tax Agreement is an agreement between all contiguous states, the District of Columbia and participating Canadian provinces. In the agreement, they have made it possible to simplify the reporting of motor fuel taxes by interstate motor carriers. Before the IFTA, every member jurisdiction had their own license forms, sets of rules, etc. The advantage of the IFTA means you only need to follow one set of rules, one set of tax forms, one audit and one fuel license which is valid for travel to all members under the IFTA

What are the requirements in order to get an IFTA License?

To obtain an IFTA (International Fuel Tax Agreement) license in Arizona, you must meet the following requirements:

1. Motor Carrier Status: You must be a motor carrier that operates vehicles with a registered gross vehicle weight rating (GVWR) of 26,001 pounds or more, or vehicles with three or more axles, regardless of weight.
2. Jurisdictional Travel: You must operate your vehicles in Arizona and at least one other IFTA member jurisdiction.
3. Fuel Tax Reporting: You must agree to file quarterly IFTA fuel tax reports detailing the fuel purchased and miles traveled in each IFTA jurisdiction.
4. Application and Filing Fees: You must submit a completed IFTA license application form and pay the $10 initial filing fee.
5. You must obtain an Arizona IFTA Surety Bond in the amount determined by the Arizona Department of Transportation (ADOT). The bond guarantees your compliance with IFTA regulations and protects the state from financial losses if you fail to pay IFTA taxes.
6. Record Keeping Agreement: You must sign a record-keeping agreement with ADOT, committing to maintain accurate records of fuel purchases and miles traveled for IFTA reporting purposes.
7. Additional Documentation: Depending on your business structure and vehicle ownership, you may need to provide additional documentation, such as Articles of Incorporation, lease agreements, or titles.
8. Power of Attorney: If you appoint an agent to handle your IFTA licensing and reporting matters, you must provide a power of attorney form.
9. USDOT Number: If you are a motor carrier subject to federal regulations, you must provide your USDOT number.
10. Operating Authority: If you are required to have operating authority to transport goods or passengers for hire, you must provide a copy of your operating authority.
11. Primary List: You must provide a list of your vehicles, including their makes, models, VINs, and GVWRs.
12. Proof of Arizona Residency: If you claim Arizona residency to qualify for a reduced bond amount, you must provide proof of residency, such as a utility bill, rent or mortgage payment receipt, or real estate ownership document.

Once you have met all the requirements and submitted the necessary documentation, ADOT will review your application and issue your IFTA license. Remember to renew your license and Arizona IFTA Surety Bond annually to maintain compliance with IFTA regulations.