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Alabama fuel tax distributor bonds.
From $100.

A licensed distributor under Alabama’s Terminal Excise Tax Act posts a bond with the Department of Revenue — a minimum of $2,000, or roughly twice the average monthly tax liability if that is greater. Enter the figure the Department set and we issue it — priced at 1% of the bond amount, $100 minimum, your exact price at the application.

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Required for a distributor’s license under Code of Alabama §40-17-335
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Amount is at least $2,000, or 2× average monthly liability — whichever is greater
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1% of the bond amount, $100 minimum — enter the required amount and see your exact price
1% rate$100 minimumExactprice at the applicationNo credit reviewnot even a soft pull
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
How it works

Three steps. One sitting.

No underwriting queue for the standard distributor bond — enter your amount, pay, and file with the Department of Revenue. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount the Department set, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

No waiting — the executed bond is generated as soon as you pay.

SAME DAY

File with the Department of Revenue

Submit the executed bond with your distributor license application. Wet-ink originals mailed whenever the Department insists.

About this bond

What it is and who needs it.

What the distributor bond actually covers

Alabama taxes motor fuel under the Terminal Excise Tax Act (Code of Alabama Title 40, Chapter 17, Article 12). A distributor — a person other than a licensed supplier who buys taxable fuel for resale from a licensed terminal supplier — is licensed by the Department of Revenue and must post a bond standing behind the fuel tax.

Under §40-17-335, a distributor’s bond is set at a minimum of $2,000, or approximately twice the average monthly tax liability, whichever is greater. It is a three-party arrangement: you (the principal), the surety carrier, and the Department of Revenue (the obligee). If a distributor fails to remit, the state recovers against the bond.

It is not insurance for you — if the surety pays the state, you repay the surety. We issue the amount the Department named — premiums from $100, with your exact price shown at the application. The application collects no credit information.

Code of Alabama §40-17-335Under Code of Alabama §40-17-335 (Alabama Terminal Excise Tax Act), the bond for an exporter, blender, importer, or distributor is a minimum of $2,000 or approximately twice the average monthly tax liability, whichever is greater. The Department of Revenue sets the exact figure — confirm it on your licensing notice.

You need this bond if you are

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Applying for an AL motor fuel distributor license through the Department of Revenue
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Buying taxable fuel for resale from a licensed terminal supplier
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Renewing a distributor license and the Department reset your bond amount
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Posting an additional bond after a change in your average monthly liability

One application, issued on the spot.

Submit the application with the bond amount the Department set — the executed bond is generated instantly, ready to file.

Start the application →
FAQ

Common questions.

How much is the Alabama fuel tax distributor bond?The premium is 1% of the bond amount, $100 minimum. The amount is at least $2,000, or roughly twice your average monthly tax liability if greater. Your exact price appears at the application.
How is the bond amount calculated?Under §40-17-335, a distributor’s bond is the greater of $2,000 or approximately two times the average monthly tax liability. The Department of Revenue sets the exact figure on your licensing notice.
Is there a credit check?The application collects no credit information on standard amounts.
How is a distributor different from a supplier?A supplier holds fuel at a terminal and removes it across the rack; a distributor buys that taxable fuel for resale. They are separate license types with different bond-sizing rules — a distributor’s floor is $2,000, a supplier’s is tied to twice monthly liability.
Where do I file it?With the Alabama Department of Revenue, Motor Fuels section, as part of your distributor license application. We issue the executed bond ready to submit.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
Related bonds

Other Alabama bonds.

AL Fuel Tax — Supplier
The Terminal Excise Tax supplier bond, sized to your tax liability. 1% of the bond amount, $100 min.
View bond →
AL Fuel Tax — Importer
The $2,000-minimum importer fuel tax bond. 1% of the bond amount, $100 min.
View bond →
AL Fuel Tax — Exporter
The $2,000-minimum exporter fuel tax bond. 1% of the bond amount, $100 min.
View bond →
AL Fuel Tax — Blender
The $2,000-minimum blender fuel tax bond. 1% of the bond amount, $100 min.
View bond →

Distributor bond, issued today.

Premiums from $100 — your exact price appears at the application. Enter the amount the Department set and file the same day.

Start application
Your premiumfrom $100
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