All applicants for a license to engage in business as a supplier of special fuel under the Motor Fuel Tax Law in Illinois are required to provide an Illinois Financial Responsibility Special Fuel Supplier Bond. This bond is a financial guarantee that the special fuel supplier will pay all taxes and fees due to the Illinois Department of Revenue (IDOR) on special fuel sales. The bond also protects consumers and the state of Illinois from financial losses that may occur as a result of the supplier’s negligence or misconduct.
Special fuel is defined as any fuel that is not motor fuel, but is used for heating or power generation. Examples of special fuel include:
- Diesel fuel for off-road use
- Natural gas
The bond amount is set by the IDOR and varies depending on the type of special fuel supplier and the estimated annual special fuel sales. The minimum bond amount is $5,000.
How to get a Illinois Financial Responsibility Special Fuel Supplier 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.
- 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.
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 be a special fuel supplier in Illinois, you must:
- Apply for a license from the Illinois Department of Revenue (IDOR). You can apply online or by mail.
- Meet the eligibility requirements. To be eligible for a license, you must:
- Be at least 21 years old.
- Be a resident of Illinois or have a valid Illinois business license.
- Have a good moral character and financial responsibility.
- Have a suitable place of business in Illinois.
- Pay the application fee. The application fee is $100.
- Provide supporting documentation. The supporting documentation required will vary depending on your individual circumstances, but may include:
- A copy of your driver’s license or other government-issued identification.
- A copy of your business license or other proof of business ownership.
- A copy of your lease agreement or deed for your place of business.
- A copy of your insurance policies.
- A criminal background check.
- Obtain a Illinois Financial Responsibility Special Fuel Supplier Bond. The IDOR requires all special fuel suppliers to obtain a financial responsibility bond in the amount of $5,000.
- Pass a knowledge test. You must pass a knowledge test administered by the IDOR in order to obtain a license. The test covers the laws and regulations governing the sale and distribution of special fuel in Illinois.
Once you have met all of the requirements, the IDOR will issue you a license to operate as a special fuel supplier in Illinois.