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Alabama permissive supplier fuel bonds.
From $100.
A permissive supplier, an out-of-state supplier who elects to collect Alabama’s motor fuel tax on fuel destined for Alabama, posts this bond with the Department of Revenue. It is sized at roughly twice the average monthly tax liability, capped at $2 million. The premium is 1% of the bond amount, $100 minimum.
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Three steps. One sitting.
Enter your amount, pay, and file with the Department of Revenue. Larger bonds may get a quick review — here is the whole thing:
Apply online
Your business details, the bond amount the Department set, and the effective date — that is the entire application.
Issued or quickly reviewed
Smaller amounts issue on payment. Large permissive supplier bonds may get a quick underwriter review within 48 hours.
File with the Department of Revenue
Submit the executed bond with your permissive supplier license election. Wet-ink originals mailed whenever the Department insists.
What it is and who needs it.
What the permissive supplier bond actually covers
Under Alabama’s Terminal Excise Tax Act (Code of Alabama Title 40, Chapter 17, Article 12), an out-of-state supplier can elect to collect Alabama’s motor fuel tax on fuel it sells for import into Alabama — that election makes it a permissive supplier. Choosing to collect the tax means the state requires a bond standing behind it.
Under §40-17-335, the permissive supplier bond is set at approximately twice the average monthly tax liability, not to exceed $2 million — the same sizing rule as the in-state supplier. It is a three-party arrangement: you (the principal), the surety carrier, and the Department of Revenue (the obligee).
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, exact price at the application. The application collects no credit information.
You need this bond if you are
One application, then issued or quickly reviewed.
Submit the application with the bond amount the Department set — smaller amounts issue instantly, large bonds may get a 48-hour review.
Start the application →Common questions.
Other Alabama bonds.
Permissive supplier bond, issued today.
Premiums from $100 — your exact price appears at the application. Enter the amount the Department set and file the same day.