How much will my Michigan motor fuel purchaser bond cost?
The Michigan Department of Treasury determines the required bond amount for motor fuel and motor carrier fuel purchaser bonds and tobacco products license bonds. The bond amount should not be less than $2,000 or more than the applicant’s 3-month tax liability. The cost of this specific surety bond is based on the client’s credit record and is subject to underwriting.
The best way to determine your surety bond price is to fill out an online bond request.
Why do I need this bond?
Michigan motor fuel, motor carrier, tobacco products license or motor fuel eligible purchaser bonds ensure that these professionals pay all taxes and penalties provided for or required by law on time and in full. If a professional fails to pay all of the necessary taxes and uphold all other terms of the bond, a claim can be brought against the bond. The surety will compensate consumers for any damages, but the motor fuel purchaser is ultimately responsible for reimbursing the surety.
Our experts know the bonding process backward and forward and can answer all of your questions and get you the bond you need.
What’s the fine print?
Michigan motor fuel, motor carrier, tobacco products license or motor fuel eligible purchaser bonds remain in effect for one year from the date of issuance. The surety underwriting company must provide the Department of Treasury with 10 days’ written notice if the bond is to be canceled.
This bond form contains multiple bond types (licensee of motor fuel, liquid petroleum gas dealer, IFTA license, eligible purchaser, wholesale or unclassified acquirer of tobacco products), so be sure to indicate the appropriate business type on the form itself.
How to become a motor fuel purchaser bond in Michigan
Individuals or entities that operate more than one fuel or tobacco-related business must obtain a license for each separate venture. Each license must be posted in a conspicuous location within the business office.
