The California User of Fuel Surety Bond is required by the State of California Board of Equalization.
If you are a fuel supplier, distributor or importer in the state of California, you are required to obtain this bond. The amount of the California User of Fuel Surety Bond is to be determined by the sales and revenue of the fuel supplier.
Surety bonds ensure public protection and guarantee payment. The California User of Fuel Bond ensures that fuel companies pay their taxes in the full amount. Because fuel is such a valuable resource, the state wants to ensure that proper taxes are paid to it by the people that sell it. This bond states and ensures that you will pay those taxes, as the states sees fuel revenue as an important flow of income. Even if a business tanks, this bond ensures the state will be paid what it is due.
This bond also protects consumers from fraud, deceit and illegal action on behalf of the seller. If customers of the fuel seller are subjected to fraud, deceit or illegal actions, they can file a claim on the bond.