Per the regulatory portal, "Every person who sells aircraft jet fuel to a user, delivers aircraft jet fuel into aircraft fuel tanks or delivers aircraft jet fuel into storage from which the fuel is withdrawn for use in an aircraft must register with the California Department of Tax and Fee Administration ". Each licensee must also file a California jet fuel dealer bond before he or she may begin operations.
The surety bond of an aircraft jet fuel dealer is a strict financial guarantee. The obligation is a blanket coverage of an operator's tax responsibilities under Revenue and Taxation Code Sections 7395, 7486 and 7700. Pursuant to RTC § 7486, "The amount of the surety bond is set by the Board but may not be more than three times the estimated average monthly tax liability of the person or business entity. The total jet fuel dealer bond penalty will never be in excess of one million dollars ($1,000,000) when the operator has established to the satisfaction of the Board that the bond is sufficient to ensure payment of taxes equivalent to three times the operator's estimated average monthly tax liability. The surety bond has a significant tail. The surety is released from its obligation only after a three-year period in which the person has filed all returns and paid all tax(es) due to the state.
The CDTFA offers a convenient one-point transaction portal to ease processing. An operator may elect to register in person at one of the CDTFA office locations. Questions may be directed to the customer service center at (800) 400-7115, Monday through Friday, 8:00 a.m. to 5:00 p.m. local time. The office advises that in addition to an aircraft jet fuel dealer permit an operator may also need to apply for a seller's permit, both of which may be accomplished using the CDTFA's online registration system.
California surety bond leader, Surety One, Inc. is available for same-day support of your new or jet fuel tax bond request. Our special programs allow us to offer you bonding regardless of financial statement condition. Do you operate in multiple states? No problem! We offer fuel dealer tax surety bonds in ALL of them. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here for a live chat about a California aircraft jet fuel dealer bond.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.