California Motor Vehicle Fuel Distributor Bond
Bond Requirements & Set Rates
| Bond Amount Required | Annual Premium |
| Varies | Varies |
Businesses that distribute motor vehicle fuel in California are required to secure a surety bond before operating. Required by the California Department of Tax and Fee Administration (CDTFA), this bond ensures distributors pay all required state taxes and comply with the Motor Vehicle Fuel Tax Law, protecting the state’s revenue.
Cost of a California Motor Vehicle Fuel Distributor Bond
The cost of a California motor vehicle fuel distributor bond is typically a small percentage of the bond amount, which the CDTFA generally sets at three times the estimated average monthly tax liability. Buy now to get your bond issued and stay compliant.
Why You Need a Motor Vehicle Fuel Distributor Bond
A California motor vehicle fuel distributor bond guarantees distributors fulfill their tax obligations and operate in accordance with state laws. It provides financial protection to the state if taxes are not paid in full or on time.
This surety bond involves three parties:
- Principal: Motor vehicle fuel distributor
- Obligee: California Department of Tax and Fee Administration
- Surety: Bonding company
If a distributor fails to meet tax obligations, a claim may be filed against the bond. The surety may compensate the state up to the bond amount, and the distributor is responsible for reimbursing the surety for any claims paid.
How to Get a California Motor Vehicle Fuel Distributor Bond
Follow these steps to get the motor vehicle fuel distributor bond:
- Complete this online application with your business information.
- Receive a quote based on your required bond amount.
- Pay the premium to activate the bond.
- Download your bond and submit it to the California Department of Tax and Fee Administration.
Get Your California Motor Vehicle Fuel Distributor Bond
NNA Surety provides a fast, streamlined bonding process with responsive support and access to top-rated carriers. Get started by completing this form for your California motor vehicle fuel distributor bond. Contact our team for more information.