fuel tax bonds

Motor Fuels Tax Department Of Income

A Fuel Tax Bond is required by the Virginia Division of Motor Automobiles (DMV) for those transacting gas associated enterprise in the Commonwealth of Virginia as outlined in Title fifty eight.1, Chapter 22 of the Code of Virginia. The bond is for applicants for the license kind to be issued by the Commissioner of the Division of Motor Autos pursuant to Title 58.1, Chapter 22 of the Code. Specifically, the surety bond is required for the following gasoline associated business types: Aviation Shoppers, Distributor Refiners, Blenders, Gas Alcohol Suppliers, Retailers of Different Gasoline, Bonded Importers, Occasional Importers, Suppliers, Bulk Customers of Different Fuel, Suppliers of Different Fuel, and Terminal Operators. Gasoline topic to a diminished portion (2.25 %) of the final sales tax. Previously topic to a separate gross sales tax, however removed by the Gasoline Tax Swap provisions (effective July 1, 2010) which imposed a $zero.173 per gallon excise tax in its place. This tax have to be yearly listed in order that the full revenues from the brand new excise tax equal the revenues misplaced from the discontinued gross sales tax.

At current, $four.2 billion in senior lien bonds and $257 million in second lien bonds are outstanding. Senior lien bonds have been issued periodically below a 1984 indenture, with second lien bonds issued since 1990 for brand new cash and refunding functions. Pledged revenues are available first for senior lien debt service and reserves, followed by second lien debt service and reserves. Thereafter, pledged revenues can be found for transportation-associated state basic obligation bond debt service and operating expenses of the departments of transportation and motor autos.

Gov. Invoice Haslam and Tennessee Transportation Commissioner John Schroer are expected to introduce a major transportation funding bill that can embrace proposed fuel tax will increase in 2017. Amongst potential sources of competition: If fuel tax revenues might be used for mass transit in locations like Nashville, the place city officials say $6 billion is needed over the following 25 years.

When a principal is unable to get a bond on their own merits, many bond companies will still provide a bond if they get a great indemnitor to sign for the bond. There are some surety firms that can situation bonds primarily based solely on the deserves of the indemnitor. Some corporations will not, nevertheless. That’s because history has proven us that, during instances of hassle, the indemnitor ceaselessly tries to get out of payment of the bond; whether or not because of their lack of desire to pay or, many instances, modifications in their very own circumstances that require them to seek to not pay the bond.

No to both questions. Motor carriers pay gasoline tax on the pump (or on the purchase of gasoline in bulk), but in addition they pay gasoline use tax to every state based on how much gasoline they consume of their travels in the state. This is executed by quarterly IFTA tax reports that element the space a carrier traveled in a state, the quantity of fuel it bought in the state tax-paid, and the general miles-per-gallon of its fleet. From this the carrier calculates the gas it used within the state and takes credit score for any state gasoline tax it paid on gas purchases throughout the quarter. It then pays the state any additional tax owed or receives a credit if tax was overpaid. The gas use tax is basically a mechanism for redistributing gasoline tax to compensate for carriers’ differential fueling among states, brought on by patterns in freight motion, and for differences in state tax charges.

Sec. 162.112. LICENSE HOLDER STATUS LIST. (a) The comptroller, on or earlier than December 20 of each yr, shall make out there to all license holders an alphabetical list of licensed suppliers, permissive suppliers, distributors, aviation fuel sellers, importers, exporters, blenders, and terminal operators. A supplemental list of additions and deletions shall be made obtainable to the license holders each month. A current and effective license or the record furnished by the comptroller is proof of the validity of the license until the comptroller notifies license holders of a change in the standing of a license holder.