Michigan Fuel Dealer, User or Seller Bond

The Michigan Fuel Dealer User or Seller Bond is  a type of surety bond required by the State of Michigan. The bond amount varies. 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 a Michigan Fuel Dealer User or Seller 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.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Michigan Fuel Dealer User or Seller 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.

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What is the purpose of a Michigan Fuel Dealer, User or Seller Bond?

If an applicant for a wholesale gasoline distributor license, a diesel dealer license, or a liquefied petroleum gas dealer license cannot satisfy the department as to the applicant’s financial responsibility, the applicant shall file with the department a cash or surety bond payable to the state, upon which the applicant is the obligor. The bond confirms that the bondholder will remit payment of tax for their gasoline, aviation fuel and/or diesel fuel purchase, including amounts elected to be paid via electronic funds transfer as provided at Section 8a, P.A. 150 of 1927, in a timely manner.

What is the amount of the bond?

The bond of a wholesale gasoline distributor shall not be less than $1,000.00 nor more than $25,000.00. The bond of a diesel dealer or a liquefied petroleum gas dealer shall not be less than $500.00 nor more than $5,000.00.