The Internal Auditing Division of the West Virginia State Tax Department requires a Motor Fuel Excise Tax surety bond in order to ensure that any principal accounts for and pays over all motor fuel taxes and penalties for which they would be liable. This bond is to protect the State of West Virginia from any loss arising from failure to pay such motor fuel taxes and penalties.
What does the licensing process include?
The amount for this bond will vary depending on license being applied for. Please refer to the list below for the amount that must be filed.
- Supplier, permissive supplier license, terminal operator license, distributor and importer as described in subdivision 4 – minimum of $100,000, or an amount equal to 3 months’ tax liability, whichever is greater. The amount of the bond should not exceed $2 million.
- Importer license for a person that imports by transport vehicle or another means outside the bulk transfer/terminal system motor fuel removed from a terminal located in another state in which: (A) The state from which the motor fuel is imported requires the seller of the motor fuel to collect a motor fuel excise tax on the removal either at that state’s rate or the rate of the destination state; or (B) the seller of the motor fuel is a permissive supplier, the amount shall be a minimum of $2,000 or an amount equal to three months’ tax liability, whichever is greater, but shall not exceed $300,000.
- Exporter license, blender license, distributor license – minimum of $2,000 or an amount equal to three months’ tax liability, whichever is greater, but shall not exceed $300,000.
The cost to the bond principal (the person or entity who buys the bond) will be just a small percentage of the bond amount.
How do I obtain a West Virginia Motor Fuel Excise Tax Bond?
Complete our easy to navigate online application. Within one business day, one of our licensed agents will contact you with a no-obligation quote for your bond (the “premium”). Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
The surety bond experts at Surety1 are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau.