Virginia Fuels Tax Retailer of Alternative Fuel Bond
Overview
Selling alternative fuel at retail in Virginia means the state needs assurance you'll remit every dollar of fuels tax you collect. Before the Virginia Department of Motor Vehicles will license you as a retailer of alternative fuel, you must post the Virginia Fuels Tax Retailer of Alternative Fuel Bond. This bond puts the Commonwealth first in line if you fall short on your tax obligations. It's a condition of doing business — not optional, not deferrable.
Who Needs This Bond?
If you sell alternative fuel at a retail location in Virginia and want to hold a state fuels tax retailer license, this bond is required before that license is issued. Alternative fuel retailers — including those selling compressed natural gas, liquefied natural gas, propane, or electricity for vehicle use — must be bonded to operate legally under Virginia's fuels tax program. If the Virginia DMV has told you to obtain this bond as part of your licensing paperwork, this is the bond they mean.
What is this Bond For?
Virginia imposes a fuels tax on alternative fuel sold at retail, and retailers are responsible for collecting and remitting that tax to the state. This bond guarantees the Commonwealth that if you fail to pay those taxes — whether through nonpayment, underpayment, or business failure — the bond will make the state whole up to its penal sum. It shifts the financial risk of tax default away from Virginia taxpayers and onto you and your surety. The bond does not pay your taxes for you; it backs your obligation to pay them.
When is it Required?
Renewal of your Virginia fuels tax retailer license triggers a review of your bond status, and the bond must remain active and in good standing for the license to continue. This is not a one-time filing you can set and forget — if the bond lapses, your license is at risk. You must post this bond before your initial license is granted, and you must maintain it continuously throughout the period you operate as a licensed retailer of alternative fuel in Virginia.
Where Does it Apply?
This bond is a statewide Virginia requirement administered through the state's fuels tax licensing program. It applies wherever you sell alternative fuel at retail within the Commonwealth of Virginia. There is no county- or city-level equivalent — this bond satisfies the state obligation directly.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal will open in a new tab. Enter your business details, complete the application, and get your bond documents without waiting on an agent. Your bond can be issued quickly so you can move forward with your Virginia fuels tax retailer license application.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, giving you access to a deep nationwide surety catalog through a fully online storefront. No agent callbacks, no fax machines, no waiting rooms — just a direct path to the bond the Virginia DMV requires. If you sell alternative fuel in Virginia and need this bond today, Bond Titan is built for exactly that.