The New York Distributor of Motor Fuel Bond a type of surety bond and is required by the New York State Department of Taxation and Finance. The bond states that the bondholder shall faithfully discharge all duties as such distributor pursuant to Articles 12‑A, 13‑A, 28, and 29 of the Tax Law and the regulations of the Department of Taxation and Finance. The minimum amount of the New York Distributor of Motor Fuel Bond is $50,000. However, the New York State Department of Taxation and Finance has the discretion to require a higher bond amount, depending on the distributor’s individual circumstances.
What is the purpose of the Surety Bond?
The purpose of the New York Distributor of Motor Fuel Bond is to ensure that motor fuel distributors comply with all applicable state laws and regulations. Specifically, the bond protects the state from financial losses in the event that a distributor fails to:
- Pay motor fuel excise taxes
- Account for and pay over all sums due to the state
- Comply with other applicable laws and regulations
If a distributor fails to meet these obligations, the state can file a claim against the bond, and the surety company will be obligated to pay the state for any losses incurred. The bond also serves as a deterrent for distributors from engaging in fraudulent or unethical behavior. By requiring distributors to obtain a bond, the state is sending a message that it is serious about enforcing its laws and regulations.
In addition to protecting the state, the bond also benefits motor fuel distributors themselves. By having a bond in place, distributors can demonstrate to their customers that they are a responsible and trustworthy business. This can help to build trust and loyalty with customers, and it can also make it easier for distributors to obtain financing and other forms of credit.
How do I obtain a Distributor of Motor Fuel 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 New York Distributor of Motor Fuel 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.