Michigan Motor Fuel Eligible Purchaser Bond
Overview
Michigan's fuel tax system depends on eligible purchasers meeting strict financial accountability standards — and this bond is how the state enforces that accountability. If you hold or are applying for Eligible Purchaser status under Michigan's motor fuel tax program, this surety bond guarantees you will remit all taxes owed to the state. It protects Michigan's fuel tax revenue from default, non-payment, or misreporting by licensed participants in the fuel supply chain. Without it, you cannot operate as an Eligible Purchaser in Michigan.
Who Needs This Bond?
If you are a fuel distributor, supplier, or terminal operator seeking Eligible Purchaser status with the Michigan Department of Treasury, this bond is a required part of your application. Eligible Purchaser status allows you to buy motor fuel on a tax-deferred basis — a significant financial privilege that the state backs with this bonding requirement. Refiners, blenders, and importers who participate in Michigan's motor fuel tax program at the wholesale level are the most common applicants. If you have been told by the Michigan Department of Treasury that a bond is required to maintain or obtain Eligible Purchaser status, this is the bond you need.
What is this Bond For?
This bond exists to protect Michigan's motor fuel tax revenue. When a business holds Eligible Purchaser status, it can receive fuel without paying tax at the point of transfer — the tax obligation is deferred to a later reporting period. The bond guarantees that if the principal fails to pay those deferred taxes, the state can make a claim to recover what is owed. It is a financial backstop for the state, not a payment plan or insurance policy for the bondholder.
When is it Required?
Ongoing compliance matters here — this bond must remain active for as long as you hold Eligible Purchaser status in Michigan. It is typically required at the point of initial licensure, and any lapse or cancellation can trigger suspension or revocation of your Eligible Purchaser designation. The Michigan Department of Treasury sets the bond amount based on your tax liability exposure, and that amount may be reviewed and adjusted over time. Stay ahead of renewal deadlines so your status is never interrupted.
Where Does it Apply?
This is a statewide Michigan requirement administered by the Michigan Department of Treasury. It applies to all Eligible Purchaser designations issued under Michigan's motor fuel tax program, regardless of where in the state your operations are based. There is no local or county equivalent — this bond satisfies a state-level obligation only.
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, where you can complete your application and purchase your bond. The process is fully online — no agent callback, no office visit, no waiting. Once approved, your bond documents are delivered digitally so you can submit proof to the Michigan Department of Treasury right away.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, giving you access to a nationwide surety bond catalog through a fast, no-friction online platform. You do not have to wait on an agent or navigate a slow quote process — everything is handled through our secure surety portal. Whether you are bonding for the first time or replacing a lapsed bond, Bond Titan gets you to the finish line quickly.