Archive for August, 2014

Fuel Tax Bond Requirements in Louisiana

Written by JoAnn Smith on August 11th, 2014. Posted in Commercial Bonds, License and Permit Bonds, Lousiana, Surety Bond Blog, Tax and Fees Bonds

     fuel tax bond requirements
Do you know your state fuel tax bond requirements?
In Louisiana any fuel supplier who also acts as a terminal operator, permissive supplier, distributor, importer, exporter, blender, transporter or anyone who is a fuel supplier for aviation fuel must be licensed and follow fuel tax bond requirements.
 
With the broad range of uses for various types of fuels, it is important for anyone engaged in the act of buying, selling, delivering or even simply blending fuel to have a license with the state of Louisiana. As part of that licensing, a fuel tax bond is required.

Denial of Fuel Supplier Licenses

Anyone who has a history of the following can be denied their fuel supplier license and the fuel tax bond requirements that accompany that license. These include:
  • If the license has been cancelled prior to the current license registration
  • If another state has revoked a similar license
  • If the federal registry license, which is also required, has been revoked
  • If the person obtaining the license has been convicted of fraud or any kind of misrepresentation
  • If the applicant is in arrears for their state taxes
  • If for any reason it has been determined that the party applying for the license is not the interested party that will be using the license
  • If the applicant, their agent, employees or officers have ever been convicted of motor fuel tax evasion.

Keeping Your Fuel Tax License Current

One of the things you will need to do to keep your fuel tax license current is make sure that your fuel tax bond requirements have been met and are up to date as well. That may mean renewing them or increasing the amount of the fuel tax bond if the state changes the requirements. Keep up to date on all your surety bond needs, including the fuel tax bond requirements for your state, with BuySurety. We have been providing a wide variety of surety bonds for many different kinds of industries for over two decades across the nation. Get bonded today with BuySurety and make sure all your fuel tax bond requirements or needs for any other types of bonds are up to date.

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Subcontractor Updates – Payment Bonds and Private Projects

Written by JoAnn Smith on August 5th, 2014. Posted in Bond Types, Contract Bonds, Latest News, Payment Bonds, Surety Bond Blog

     payment bonds      
Do you know if your private project has payment bonds attached?
Until the economy took a giant step backwards around 2008, it was rare to see a project require any kind of payment bonds if the project stayed within the private sector. But when the construction industry crashed alongside real estate, you began to see more and more construction projects that were not under the public umbrella come with the requirement for payment bonds or even sometimes performance bonds.
 
A Payment bond held by an owner or general contractor can impact what a subcontractor’s recourse will be in the case of non-payment. That is why it is always a good idea to find out at the beginning of a project if anyone responsible for the contract has taken out payment bonds or any kind of performance bond on the project. This is true whether a private or public project, but it is important to be aware that even a private construction project can come with payment bond requirements these days.

Payment Bonds on Private Projects

Because the use of payment bonds before the recent economic upheaval was relatively rare for private projects, it is important to understand if a mechanic’s lien or court action can be avoided with this bond. When times are good many project owners and general contractors don’t feel the need for these bonds. Now many projects require them.
 
Public projects have rules regarding collecting on bonds or civil actions, as set out in The Miller Act. However, when it comes to a private project the terms of the bond will govern. That is why it is important to ask and understand exactly what kind of payment bonds are related to the project and under what conditions they become enforceable. There are a few things you can generally expect, however, including:
  • The bonds will lay out specific notice requirements
  • The notice will most likely be required in the form of writing
  • Written notice will need to go to specific parties outlined in the bond
  • These parties need to receive written notice within a specific timetable
  • All requirements must be fulfilled to act on the bond

Where Contracts Rule

Many states, such as Virginia, specify that the contract supersedes all other agreements. It is vital to know if your state is one of these as that will affect your ability to enforce the bond. When this is the case, the terms of the bond cannot be outweighed by other legal considerations or interests. This is because any surety bond including a payment bond is a contractual obligation. So make sure you have a copy of that surety bond before you start the project.

Getting Bonded Correctly

Of course, it always helps if you have a reliable surety bond company like BuySurety to go to when it comes to payment bonds or clarifying your bond requirements. BuySurety is an experienced surety bond company. We have been providing everything from contractor license bonds to bid bonds and payment bonds since 1998 to a wide variety of businesses. Whether you are a small contractor just starting out or a large national company with wide-ranging projects, we can provide the exact surety bond to suit your needs at a price that is within your budget. Come by the BuySurety site to see just how fast and easy it is to get bonded with BuySurety today.

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Appraisal Management Company Bonds Requirements Change

Written by JoAnn Smith on August 4th, 2014. Posted in Arizona, Commercial Bonds, Latest News, Legislation, License and Permit Bonds, Mississippi, States, Surety Bond Blog, Virginia

     appraisal management company bonds
Appraisal management company bonds see changes
For several states the requirements for real estate appraisal management company bonds are changing, which should be no surprise to anyone in the real estate industry. As the market makes its recovery from the 2008 crash, home prices are going up again. This means that appraisals need to be constantly re-evaluated and the appraisal management company bonds for these businesses are getting re-evaluated by the state legislative committees as well. Three states that saw changes to how the appraisal management company bonds would play into these new realities are Arizona, Mississippi and Virginia. All three have recently made changes to the requirements for real estate appraisal management companies to hold a surety bond as part of the cost of doing business.

Arizona Changes their License Bond

In Arizona a company that does business as an appraiser of real estate may not be required to have appraisal management company bonds, but they are required to be licensed and carry a license bond as part of that license. Until the passage of Arizona House Bill 2239 that requirement was a $20,000 license bond. With the passage of this bill on April 16, 2014 and the Governor signing it into law on April 22nd the requirement for a license bond for this type of business was changed to not less than $20,000 with a maximum surety bond amount of $50,000. In addition, instead of a criminal background check being required for licensing, owners will now only need to submit a valid fingerprint clearance card.

Mississippi and Appraisal Management Company Bonds

Mississippi’s House attempted to pass a change to the appraisal management company bonds requirements along with a change to authorize Mississippi real estate appraisers to establish standards for measuring certain residential properties. While the change regarding standards was written into law, the surety bond requirement for all real estate appraisal companies in Mississippi still stands. The final version of the new law did not see any changes in the requirements of posting a surety bond as part of the licensing structure.

Changes for Virginia Real Estate Appraisal Companies

With the passage of Virginia House Bill 762, both real estate appraisers and real estate appraisal companies will be required by law to hold a license and a real estate appraisal management bond or license bond, whichever is applicable. With this law no one who engages in the business of real estate appraisal can do so in Virginia without a license that is issued by the Real Estate Appraisal Board. In addition, the amount of the real estate appraisal license bond will be increased from $25,000 to $100,000. The bill was signed by the Governor on March 07, 2014 and went into effect on July 01, 2014.

Licensing Needs Met Here

Obviously many different kinds of businesses need many different kinds of licenses. Just as you see here where three different states have different requirements about surety bonds that go with those licenses, it is the same with a host of different types of businesses. That is why it is always a good idea to check in with a reputable surety bond broker, such as BuySurety, to be sure your business has the license bonds it needs to stay on the right side of the law. Not sure what your state requires of your new business? Contact BuySurety’s customer service and find out today. Keeping your business legal and bonded correctly is just one part of why businesses big and small across the nation have counted on BuySurety since 1998. Contact us today to find out just how fast and easy getting bonded with BuySurety can be for you.

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