The Illinois Motor Fuel Distributor Bond is a type of surety bond required by the State of IL, Department of Revenue. The amount of the surety bond is set by the Illinois Department of Revenue and is based on the distributor’s estimated annual motor fuel sales. The bond amount must be at least $500, but it cannot exceed twice the monthly amount that would be collectible as a tax in the event of a sale of motor fuel, or special fuel sold, distributed,
and used by the distributor including tax-free sales, use, or distribution.
Anyone who wants to distribute motor fuel in Illinois needs an Illinois Motor Fuel Distributor Bond. This includes anyone who:
- Imports motor fuel into Illinois
- Produces, refines, blends, compounds, or manufactures motor fuel in Illinois
- Has 30,000 gallons of motor fuel bulk storage at an Illinois bulk storage plant and distributes the fuel primarily by tank car or tank truck
- Exports motor fuel out of Illinois
The Illinois Motor Fuel Distributor Bond protects the state of Illinois from financial losses if the distributor fails to pay the motor fuel tax. The bond amount is set by the Illinois Department of Revenue and is based on the distributor’s estimated annual motor fuel sales.
How to get a Illinois Motor Fuel Distributor Bond
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. 2
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the Illinois Motor Fuel Distributor 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.
To license as an Illinois Motor Fuel Distributor, you must:
- Complete and submit Form REG-1, Illinois Business Registration Application, and Form REG-8-A, Application for Motor Fuel Tax License, to the Illinois Department of Revenue (IDOR). These forms can be downloaded from the IDOR website or obtained by calling the IDOR at 1-800-732-8866.
- Obtain an Illinois Motor Fuel Distributor Bond. The bond amount is set by the IDOR and is based on the distributor’s estimated annual motor fuel sales.
- Pay the applicable license fee. The license fee is $100 and is non-refundable.
- Submit all required documentation to the IDOR. This documentation may include a copy of your business registration, a copy of your surety bond, and a copy of any other required permits or licenses.
Once you have submitted all required documentation and paid the applicable license fee, the IDOR will review your application and issue you a motor fuel distributor license.
Here are some additional tips for licensing as an Illinois Motor Fuel Distributor:
- Start the application process early. It may take several weeks to process your application and issue your license.
- Make sure that your application is complete and accurate. Any incomplete or inaccurate information may delay the processing of your application.
- Keep a copy of all documentation that you submit to the IDOR. This documentation may be required for future audits or other purposes.
- If you have any questions about the application process, you should contact the IDOR at 1-800-732-8866.
Here are some of the benefits of licensing as an Illinois Motor Fuel Distributor:
- You will be able to distribute motor fuel in Illinois.
- You will be able to collect and pay the motor fuel tax to the state of Illinois.
- You will be able to operate a legitimate business in the state of Illinois.
I hope this information is helpful.
How to Get Your Illinois Motor Fuel Distributor Bond
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.