Alabama Fuel Tax (Permissive Supplier) Bond
Overview
Alabama requires permissive suppliers to secure a Fuel Tax Bond before they can distribute motor fuel within the state. This bond guarantees that you — as a permissive supplier — will remit all required fuel taxes to the Alabama Department of Revenue on time and in full. If taxes go unpaid, the state can make a claim against the bond to recover what it is owed. Getting bonded is a non-negotiable step before you can legally operate in this classification.
Who Needs This Bond?
Permissive suppliers seeking authorization to operate in Alabama's fuel distribution chain are the primary applicants for this bond. This classification covers out-of-state suppliers who elect to collect and remit Alabama fuel taxes at the terminal rack, rather than having the tax collected by another licensed supplier. If the Alabama Department of Revenue has told you that you need a Fuel Tax (Permissive Supplier) Bond as part of your licensing application, this is the exact bond you need to purchase. It is not required of standard licensed suppliers — only those operating under the permissive supplier classification.
What is this Bond For?
This bond is a financial guarantee to the Alabama Department of Revenue that you will comply with the state's fuel tax laws as a permissive supplier. It protects the state against losses caused by unpaid fuel taxes, penalties, or fees that result from your operations. The bond does not protect you — it protects the state and, by extension, the public. Your obligation as principal is to stay current on all fuel tax remittances so no claim is ever necessary.
When is it Required?
Applying for your Alabama permissive supplier license is the exact moment this bond becomes mandatory. The Alabama Department of Revenue will not approve your application or issue your permissive supplier authorization without a valid, filed surety bond in place. This is a condition of licensure, not an optional safeguard — you must have the bond executed and on file before you can begin collecting and remitting fuel taxes under the permissive supplier election.
Where Does it Apply?
This bond is a statewide Alabama requirement and applies to fuel tax activity across the entire state. It is not tied to a specific city, county, or terminal location — it covers your obligations as a permissive supplier wherever you operate within Alabama. The obligee is the Alabama Department of Revenue, and the bond must meet that agency's specific requirements.
How to Buy Online
Click 'Buy This Bond Online' on this page to open the secure surety portal in a new tab, where you can complete your application and purchase the Alabama Fuel Tax (Permissive Supplier) Bond. The process is fully online — no waiting on an agent callback, no paperwork delays. Once issued, your bond documents are ready to file with the Alabama Department of Revenue.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, giving you access to a nationwide surety bond catalog through a fast, fully online purchase process. You get the exact bond Alabama requires — issued quickly and ready to file — without the back-and-forth of a traditional agency. No phone calls, no waiting rooms, no delays between you and your permissive supplier license.