California User of Fuel Bond
Bond Requirements & Set Rates
| Bond Amount Required | Annual Premium |
| Varies | Varies |
Businesses and individuals in California who use motor vehicle fuel in a way that requires reporting and paying use fuel taxes may be required to get a surety bond before operating. Required by the California Department of Tax and Fee Administration (CDTFA), the California user of fuel bond guarantees payment of all applicable fuel use taxes and ensures compliance with the California Use Fuel Tax Law.
Cost of a California User of Fuel Bond
The cost of a California user of fuel bond is typically a small percentage of the bond amount, which the CDTFA typically sets at three times your estimated average monthly tax liability up to a maximum of $1,000,000.
Complete this form for an instant free quote.
Why You Need a User of Fuel Bond
A California user of fuel bond protects the state by ensuring all required fuel use taxes are paid accurately and on time. It serves as a financial guarantee that fuel users will meet their legal obligations under state law.
This surety bond involves three parties:
- Principal: Fuel user required to pay use fuel taxes
- Obligee: California Department of Tax and Fee Administration
- Surety: Bonding company issuing the bond
If the principal fails to pay required taxes, a claim can be made against the bond. The surety may compensate the state up to the bond amount, and the principal is responsible for reimbursing the surety for any claims paid.
How to Get a California User of Fuel Bond
Follow these simple steps to get bonded with NNA Surety:
- Complete this online application with your business and fuel use details.
- Receive an instant quote with competitive premium rates.
- Pay your premium and receive your bond.
- Download your bond and submit it to the appropriate state agency.
With NNA Surety, you benefit from a streamlined process, responsive support, and over 60 years of nationwide bonding expertise.
Apply for Your California User of Fuel Bond Today
NNA Surety can help you meet your tax compliance requirements with the California user of fuel bond. Start your application or contact our team for more information.