Surety Bonds on the Rocks – Highway Use Tax Bond

Written by JoAnn Smith on . Posted in On The Rocks, Surety Bond Blog

Bond Type:   Highway Use Tax bond
Definition:  A Highway Use Tax Bond is a license and permit surety bond that guarantees the payment of taxes, fees, penalties and interest due to various states and the federal government by motor carriers (trucking companies) operating certain motor vehicles on public highways. Typically there is a minimum weight requirement and the vehicles must be commercial in nature. The amounts vary by jurisdiction and depend on the number of vehicles in a fleet, the weight of the vehicles and the method used to report the tax. The bond guarantees payment of these taxes whose revenues are used for highway construction and maintenance projects. These bonds are also known as Heavy Vehicle Use Tax surety bonds and Mileage Use Tax surety bonds.
Requirements: 
  • Application on BuySurety.com
  • US citizen
  • Nothing derogatory on your credit report

Obligee:  Department of Transportation for your state
Typical Bond Premium: This bond is based on personal credit and business history.  A Principal with strong personal credit might pay between 1.5 – 3%.  If the credit is lower the premium could go as high as 4-15%
Surety on the Rocks:  Apple cider Sangria  1 ½  Oz Bourbon; 1 tsp fine sugar; 2 small cloves; 1 ½ boiling water  Add bourbon, sugar, and cloves in old fashions glass or mug Add 1-2 oz (or more if desired) of boiling water and stir.  Enjoy bonnie happy hour

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