Delaware Motor Fuel Distributor Bond Guide
Delaware motor fuel distributors need a surety bond to meet state licensing regulations. Learn more about these bonds with our complete guide.
Bond Overview
- Purpose: To ensure fuel distributors operate legally and pay all required taxes
- Who Needs It: All motor fuel distributors in Delaware
- Regulating Body: The Delaware Motor Fuel Tax Administration
- Required Amount: 3x the average monthly tax obligation
- Premium Rates: Typically 1–10% of the bond amount, credit-based
What Are Delaware Motor Fuel Distributor Bonds?
A Delaware motor fuel distributor bond ensures that distributors:
- Operate legally
- File accurate tax reports
- Make timely payments of all gasoline taxes
This bond protects the state from financial loss caused by noncompliance with Delaware’s Motor Fuel and Special Fuel Tax Law.
How Much Do Motor Fuel Distributor Bonds Cost?
The bond amount must be approximately three times your estimated average monthly fuel tax liability, ranging from $5,000 to $200,000.
Delaware motor fuel distributor bonds and special fuel bond premiums start at just $100 for a one-year term. Exact prices vary depending on the coverage amount and personal credit score. Select your bond type below to get your free quote.
SuretyBonds.com offers the lowest available rates available from our nationwide network of providers.
How Does a Delaware Motor Fuel Distributor or Special Fuel Bond Work?
By purchasing a fuel tax bond, you enter a legally-binding contract between three parties:
- Principal: You, the fuel distributor purchasing the bond
- Obligee: The Delaware Motor Fuel Tax Administration requiring the bond
- Surety: The provider issuing the bond
If you, as the distributor, violate the bond terms, affected parties can file bond claims to reimburse damages. The surety validates and pays claims but you must refund the surety afterwards.
How Do I Get a Fuel Distributor Tax Bond?
SuretyBonds.com offers the fastest and easiest way to get a fuel distributor tax bond in Delaware. When you apply for the bond as part of your initial license application, you’ll submit the bond form with your application.
After submission, you’ll typically receive your license within 2–3 business days. However, processing times can vary.
Can I Get Bonded With Bad Credit?
Yes, you may be able to get a fuel distributor bond even with bad credit. However, keep in mind that this may lead to a higher premium.
When you apply, we will explore our nationwide markets to find the best available rate for you. Request a quote now to get started!
How to Renew Your Motor Fuel Distributor Bond
You must renew your motor fuel distributor bond before the current one-year term ends. After paying your renewal invoice, you'll receive instructions to ensure your bond remains active for the upcoming term.
Check out our How to Renew Your Surety Bond page for more information.
How to Become a Licensed Fuel Distributor in Delaware
To become a motor fuel distributor with the Delaware Department of Transportation (DOT), you must fulfill several requirements. Gather the following materials to apply:
- Completed Motor Fuel Distributor License Application provided by the Delaware DOT
- $10 non-refundable application fee made payable to the Motor Fuel Tax Administration
- Fuel tax surety bond in the required amount
Mail everything to the address below to apply:
Delaware Department of Transportation
Motor Fuel Tax Administration
P.O. Drawer E
Dover, DE 19903
Once you are approved, licenses are valid for one year but expire on June 30th annually.
