Nebraska Motor Fuels Tax Bond

A Motor Fuels Tax Bond is a type of surety bond required by the Nebraska Department of Revenue for each entity making application for a motor fuels or aircraft fuels supplier, distributor, wholesaler, importer, exporter or compressed fuel retailer license in the state. Additional security may also be required by the Motor Fuels Division to ensure compliance with Nebraska Motor Fuels Tax Laws. A surety bond may also be required when a licensee fails to file timely returns, properly remit taxes, or due to problems with an audit.

The surety bond amount required for a motor fuels producer, supplier, distributor, wholesaler, importer, or exporter license must be three times the estimated average monthly tax liability, in an amount not less than $20,000. The surety bond amount for an aircraft fuels supplier, distributor, wholesaler, importer, or exporter license is about three times the estimated average monthly tax liability, in an amount not less than $10,000. The surety bond amount for a compressed fuel retailer is approximately two times the estimated average quarterly tax liability, or three times the estimated average monthly tax liability, depending upon the filing frequency, in an amount not less than $1,000. When no history of liability exists, the state requires the applicant to estimate potential liability.