This fuel tax bond guarantees that the payment of taxes, penalties, interest and cost due to the state will be properly paid by the obligator. The obligator is required to obtain a license from the state and the federal government. This Fuel Tax Bonds guarantees the payment of state taxes, by fuel sellers. This type of surety bonds contains high risk. A permit is issued by the board of equalization regarding payment of taxes. To do fuel tax business a seller has to obtain a license from the state authorities. These types of bonds are secured by a pledge and a lien on the county's constitutional fuel tax revenue.
This fuel tax is forward to the ultimate consumer who purchases fuel at retail price. The Consumers has every right to apply for a refund of the fuel tax when fuel is used in an exempt manner. The principal has to obtain a separate surety bond form. He has to enter the surety amount for which the surety bond application is been taken. This fuel tax bond maintains a rigid way of imposing tax on the public. It also ensures that the public will not waste the fuel since tax is paid by them. This bond guarantees proper payment of taxes to the government.
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