New Jersey Motor Fuels Tax Bond

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The New Jersey Motor Fuels Tax Bond is a type of surety bond that is required for businesses that sell motor fuels in the state of New Jersey. The New Jersey Division of Taxation sets the bond amount and 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 to$250. Surety1 will shop its many markets to procure the right price at the right terms.

How to get a New Jersey Motor Fuels Tax 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 New Jersey Motor Fuels Tax 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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The New Jersey motor fuel tax bond amount is not a fixed number. It is determined on a case-by-case basis and is equal to three times the greatest amount of tax that the distributor is likely to owe in any given month during the previous 12 months.

Here’s an example:

• If a distributor’s highest monthly motor fuel tax liability in the past year was $10,000, then the bond amount would be $30,000 (3 x $10,000).

The New Jersey Division of Taxation considers the following factors when determining the bond amount:

• The applicant’s prior record as a New Jersey taxpayer
• The applicant’s financial responsibility
• The type and volume of motor fuel the applicant will be distributing

You can find more information about the New Jersey motor fuel tax bond on the New Jersey Division of Taxation website: https://www.nj.gov/treasury/taxation/prntmf.shtml

What is the purpose of the Tax Bond?

The bond guarantees that the business will pay all motor fuel taxes that are due to the state and comply with the Motor Fuels Tax Law.  The bond ensures that the state will be compensated for any losses it incurs due to the business’s noncompliance, such as unpaid taxes, inaccurate records, or failure to provide fuel samples for testing. If the surety company pays a claim on the bond, it will seek restitution from the bond principal (licensee).
Here are some specific examples of how the NJ Tax Bond protects the state’s revenue:

• If a business fails to pay its motor fuel taxes, the state can file a claim against the bond and receive payment directly from the surety company.
• If a business provides inaccurate records of its motor fuel transactions, the state can use the bond as evidence of the business’s wrongdoing and pursue additional penalties.
• If a business fails to provide fuel samples for testing, the state can use the bond to cover the cost of testing the fuel itself and to identify any potential violations of the law.

For more information, contact the New Jersey Division of Taxation.