Indiana Special Fuel License for Terminal Operator Bond
Overview
Indiana's Department of Revenue requires terminal operators to post a Special Fuel License bond before they can legally operate a fuel terminal in the state. This bond guarantees that your business will collect and remit special fuel taxes exactly as Indiana law requires. If your operation fails to meet those tax obligations, the state has a financial guarantee to recover what it is owed. Terminal operators who skip this requirement cannot obtain or maintain their special fuel license.
Who Needs This Bond?
Terminal operators — businesses that receive, store, or distribute special fuel such as diesel at a licensed terminal location in Indiana — must carry this bond. You need it if you are applying for or renewing an Indiana Special Fuel Terminal Operator license issued by the Indiana Department of Revenue. It applies to any entity operating a terminal where taxable special fuel enters the distribution system. If the Department has told you a surety bond is part of your licensing paperwork, this is the bond you need.
What is this Bond For?
This bond protects Indiana's state revenue by ensuring terminal operators fulfill their special fuel tax collection and remittance duties. It acts as a financial backstop for the Indiana Department of Revenue if a licensed terminal operator fails to pay the fuel taxes owed to the state. The bond does not protect the terminal operator — it protects the state and, by extension, the public interest in properly funded transportation infrastructure. Unpaid fuel tax obligations covered by a valid bond can be recovered through a claim against the bond.
When is it Required?
Applying for an Indiana Special Fuel Terminal Operator license is the event that makes this bond mandatory. Before the Indiana Department of Revenue will approve your terminal operator license, the bond must already be executed and on file. Operating a fuel terminal without the required license — and without this bond — exposes your business to regulatory penalties and potential loss of operating authority. Renewals and material changes to your license may also trigger a bond review.
Where Does it Apply?
This bond is a statewide Indiana requirement that applies to every licensed fuel terminal operating within Indiana's borders. It is issued to satisfy the Indiana Department of Revenue's licensing conditions — not a local city or county permit. Any terminal operator receiving or distributing taxable special fuel anywhere in Indiana falls under this requirement.
How to Buy Online
Click 'Buy This Bond Online' on this page and you will be taken directly to the secure surety portal in a new tab. Enter your business information, complete the application, and follow the steps to secure your bond. Once issued, you will have the documentation you need to submit to the Indiana Department of Revenue with your terminal operator license application.
Why Bond Titan?
Bond Titan is powered by The Southern Agency and built for business owners who need their bond today — not after waiting on an agent to call back. Our online catalog covers fuel tax bonds across the country, including Indiana's Special Fuel Terminal Operator bond, and the process is fully digital from start to finish. You get a fast, straightforward purchase without the delays of a traditional agency process.