The bond a terminal operator, supplier, or permissive supplier posts under the Alabama Terminal Excise Tax Act. The Department of Revenue sets the amount — generally about twice your average monthly fuel tax liability. The premium is 1% of the bond amount, $100 minimum — exact price in the on-page calculator.
















Enter your amount, pay, and file with the Department of Revenue. Larger fuel bonds may get a quick review. Here is the whole thing:
Your business details, the bond amount the department set, and the effective date — that is the entire application.
No waiting — the application collects no credit information, and the executed bond is generated as soon as you pay. Larger fuel bond amounts may get a quick review.
Submit the executed bond with your Motor Fuels license application to the Business & License Tax Division. Wet-ink originals mailed whenever the state insists on them.
Alabama taxes motor fuel at the terminal rack under the Alabama Terminal Excise Tax Act (Ala. Code §40-17-330 et seq.), administered by the Department of Revenue's Business & License Tax Division, Motor Fuels Section. Licensees handle large volumes of tax before remitting it, so the act conditions certain licenses on a surety bond.
Under Ala. Code §40-17-335, suppliers, permissive suppliers, and terminal operators must post a bond of at least twice their average monthly tax liability, up to a maximum of $2,000,000. The Commissioner approves the bond limit by license classification before the license issues. A licensee may deposit certified funds instead of a bond.
The bond stands behind the fuel excise tax you owe — if you fail to remit, the state can recover against it, and if the surety pays, you repay the surety. We issue the amount the department set; your exact price appears at the application, starting at $100.
Submit the application with the bond amount the Department of Revenue set — the executed bond is generated instantly, ready to file. Larger fuel bonds may get a quick review.
Start the application →Premiums from $100, exact price shown before you pay. Enter the amount the department set and file the same day.