Highway Use Tax Bond
Many States have surety bond requirements for their Highway Use and/or International Fuel Tax Agreement (IFTA) permits. This type of financial guarantee bond guarantees payment to the State of any taxes due or that may become due. These bonds are required on a State-to-State basis and there is not a blanket bond available for multiple states.
The bond limits for the Highway Use/IFTA bonds are usually for $10,000.00 or less, with most falling under $5,000.00. The Obligee (usually the State’s Department of Transportation) will determine the required bond limit based on the number of trucks under the permit and/or the anticipated usage. Most States have a minimum bond requirement that is required for every permittee. For example, Both Illinois and Kentucky’s minimum bond is $1,000.00; while Oregon’s is $2,000.00 and Arizona’s is $3,250.00. However, the amounts can range on a case-by-case basis, again, as determined by the Obligee.
Generally, these bonds are only required for one year if the permittee remits their tax payments on time and per the terms of the State’s regulations. If payments are outstanding or if the permittee has late payment history, the bond requirement may be extended for another year or increased as determined by the State’s officials.
We have several markets that will offer approval on these bonds with no credit! All we need is an application completed with basic information. The cost for bonds $10,000.00 and under will usually qualify for a minimum premium ranging from $150.00 to $500.00 annually. Bond amounts over $3,000.00 may require a credit check but are usually approved at the same rates even with “bad” credit.
Bond Amount over $10,000.00? No Problem! We have programs for those too! Call us at 1-888-518-8011 for more information or apply online today!