As an adherent to the international protocols, an Arizona IFTA bond is required by the state for carrier operators. IFTA (International Fuel Tax Agreement) is a treaty between forty eight U.S. states and ten canadian provinces which greatly simplifies the reporting of motor fuel taxes by interstate carriers. The most significant benefits are reduced paperwork and standardized fuel tax reporting. If your carrier operation is base in Arizona and you will cross at least ONE other IFTA jurisdiction then you must post the Arizona IFTA bond and and purchase the appropriate license. If your operation is not based in Arizona then your home jurisdiction’s IFTA license and decals will be honored, however if your state does NOT require IFTA licensing and you cross into Arizona the you MUST obtain the Arizona IFTA bond and registration. Arizona may waive the IFTA surety bond requirement. An applicant will NOT be waived for one or more of the following reasons:
1.) Failure to file tax reports or remit taxes in a timely manner.
2.) The DMV Director feels that the interests of the state or a fellow IFTA jurisdiction are in jeopardy.
3.) Applicant is not based in an IFTA jurisdiction.
4.) No experience history.
5.) Applicant is not in good standing in another IFTA jurisdiction or has failed to provide a proper IFTA bond.
6.) Applicant has a “non-favorable” or “not in good standing” report in any IFTA jurisdiction.
If the Director requires an Arizona IFTA bond then the surety must indicate that the interstate user is the principal obligor and the state is the obligee, be conditioned on the interstate user faithfully complying with Arizona Revised Statutes Title 28, Chapter 16, and the prompt filing of true reports and payment by the interstate user of all use fuel taxes and fees due or accrued together with all penalties and interest on the taxes and fees. The Arizona IFTA bond must be written in an amount that is prescribed by the Director however it may not exceed $100,000. The obligation as currently written is not cumulative. Surety may cancel the surety bond by giving sixty days written notice of the same to the Director of the Arizona Department of Transportation, State of Arizona, which becomes effective on the last day of the month that includes the end of the sixty day period. As with most tax/financial guarantee bonds, cancellation of the Arizona IFTA bond does not affect the liability of the surety for any acts or omissions of the carrier occurring prior to the effective date of the cancellation.
Arizona surety leader, Surety One, Inc. underwrites IFTA surety bonds and also fuel tax surety bonds for all classes of air, maritime and ground transportion operators. No surety bonding company is more agile or responsive! We welcome applications from domestic and foreign operations. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for an Arizona IFTA bond application or information regarding surety bonding.
