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| Indiana – Special Fuel License for Eligible Purchaser Bond |  |
| Indiana – Special Fuel License for Exporter Bond | |
| Indiana – Special Fuel License for Importer Bond | |
| Indiana – Special Fuel License for Permissive Supplier Bond | |
| Indiana – Special Fuel License for Supplier Bond | |
| Indiana – Special Fuel License for Terminal Operator Bond | |
| Indiana – Special Fuel License for Transporter Bond | |
Introduction
The Indiana Special Fuel License is required for businesses engaged in selling, distributing, or dealing with special fuels—such as diesel, biodiesel, or other non-gasoline motor fuels—within the state. Issued by the Indiana Department of Revenue, this license ensures that fuel operators comply with state tax regulations, maintain accurate reporting, and meet all financial responsibility requirements, including securing a Special Fuel License Bond.
Explanation: Indiana Special Fuel License Bond
An Indiana Special Fuel License Bond is a type of surety bond required by the Indiana Department of Revenue (DOR) for businesses that import, sell, distribute, or deal in special fuels—primarily diesel fuel, biodiesel, and other non-gasoline motor fuels—within the state.
This bond serves as a financial guarantee that the license holder will comply with all state laws and tax regulations under Indiana Code Title 6, Article 6.1 – Special Fuel Tax. It ensures that the licensee will:
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Properly report and pay all state fuel taxes.
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Maintain accurate records of fuel transactions.
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Follow all distribution, importation, and storage regulations set by the Indiana DOR.
The state may make a claim against the bond if the licensee doesn’t fulfill these responsibilities, such as not paying taxes, making fraudulent reports, or breaking fuel laws. The license holder is required to reimburse the surety when the surety business pays legitimate claims up to the bond amount.
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Purpose:
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Protects the state of Indiana from revenue loss.
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Encourages lawful operation of special fuel businesses.
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Builds trust with state authorities by providing a compliance guarantee.
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Process of Getting the Indiana Special Fuel License Bond
Determine Bond Requirement
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Confirm with the Indiana Department of Revenue (DOR) that you need a Special Fuel License Bond under Indiana Code Title 6, Article 6.1 – Special Fuel Tax.
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The DOR will determine the required bond amount based on your expected tax liability.
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Choose a Licensed Surety Bond Provider
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Select a surety company authorized to issue bonds in Indiana.
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Ensure the provider understands fuel tax bonds for faster processing.
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Complete Bond Application
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Provide business details: legal name, address, type of business, and ownership information.
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Submit financial documents if requested for underwriting purposes.
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Undergo Credit Review
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The surety will review your personal and business credit history to assess risk.
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Strong credit generally results in lower premium rates (usually % of the bond amount).
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Receive Bond Quote & Pay Premium
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The surety issues a premium quote based on the bond amount and your credit profile.
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Pay the premium to activate coverage.
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Issuance of the Bond
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The surety prepares the official Indiana Special Fuel License Bond form.
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Ensure the bond includes correct details: your legal business name, bond amount, and effective date.
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Conclusion
The Indiana Special Fuel License Bond is a state-mandated financial guarantee that ensures licensed fuel suppliers, distributors, and dealers comply with Indiana’s special fuel tax laws and remit all taxes owed to the Indiana Department of Revenue. By securing and maintaining this bond, businesses demonstrate financial responsibility, protect the state from potential revenue losses, and remain in good standing to legally operate within Indiana’s fuel industry.
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Frequently Asked Questions (FAQs)
What happens if I do not maintain the bond?
Failure to maintain an active bond may result in suspension or revocation of the Special Fuel License and possible penalties under Indiana law.
Is this bond the same as liability insurance?
No. A surety bond is a financial guarantee for the state, not insurance for the licensee. It protects the public and the state from financial loss due to non-compliance.
What happens if a claim is filed on my bond?
If you fail to pay taxes or comply with regulations, the state may make a claim on your bond. The surety may pay the claim up to the bond limit, and you will be required to reimburse the surety in full.
How often must I renew the bond?
Bonds are generally renewed annually to match the license term, but the exact renewal period depends on your surety provider’s terms.
Are there penalties for operating without this bond?
Yes. Operating without the bond is a violation of Indiana tax law and may result in license suspension, fines, and possible legal action.
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