(877) 477-7578 View all bonds

Distributor Bond

Dallas distributor tax bond

State distributor surety for fuel, tobacco, and liquor wholesalers

Fuel, tobacco, liquor, and other excise distributors file a distributor bond so the state revenue department is paid if tax filings or remittances fall short.

Apply for this bond

You are applying for this bond — opens in a new window.

Or call (877) 477-7578

Overview

What is this bond?

A distributor bond (distributor tax bond) is the surety a licensed wholesale distributor files with the state revenue department. It guarantees fuel, tobacco, liquor, or other excise tax returns and payments so the distributor license stays in force.

Key Provisions
  • Guarantees compliance with Confirm applicable Texas statutes with the obligee
  • Protects the obligee named on the Texas bond form
  • Remains subject to the penal sum and bond conditions
Surety Obligation Overview

What Does This Bond Guarantee?

The surety bond guarantees that the principal will perform the duties required under Confirm applicable Texas statutes with the obligee up to the penal sum.

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
State revenue department named on the bond form
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.

When a claim may arise

A claim may arise if the principal fails to comply with the bonded Texas obligation or causes covered loss to the obligee or protected parties.

If a claim is valid

If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.

Scope of the Obligation
  • Comply with Confirm applicable Texas statutes with the obligee
  • Satisfy Texas obligee named on the form filing conditions
  • Maintain the bond for the required term
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Wholesale distributors that hold or are applying for a state fuel, tobacco, liquor, or related excise distributor license need this bond.

Who Is Required to File
  • Motor fuel and IFTA distributors
  • Tobacco and cigarette wholesale distributors
  • Liquor, beer, and wine distributors posting excise tax surety
  • Other bulk-product importers the revenue department classifies as distributors
Requirements

What You Need to Apply

Register the distributor tax account, receive the department’s bond amount, then file a continuous surety bond in that penal sum.

Required Documentation
  1. Confirm distributor class (fuel, tobacco, liquor, or other excise)
  2. Obtain the department’s required amount from estimated tax — do not invent a figure
  3. Apply using the Distributor Tax Propeller class
  4. File the issued bond with the revenue department
  5. Keep the bond continuous while the distributor license is active
Filing

How this filing works

  1. 01

    Confirm the distributor class and amount

    Match fuel, tobacco, liquor, or the other excise class the revenue department assigned, and use the penal sum they calculated.

  2. 02

    Apply for the bond

    Use Apply on this page for the Distributor Tax Propeller class. Underwriting follows the department’s amount.

  3. 03

    File with the revenue department

    Upload or deliver the issued bond on the department’s form. Keep it continuous for as long as you hold the distributor license.

FAQ

Frequently Asked Questions

Is this a wholesale drug distributor bond?

No. Prescription-drug wholesale is a separate Board of Pharmacy SKU. This page is the state revenue distributor / excise tax bond.

How is the amount set?

The revenue department sets the penal sum from estimated tax — often a multiple of monthly excise liability, with a statutory floor and cap. Confirm the current figure with the department.

Does a freight broker need a distributor bond?

Only if you also hold a fuel, tobacco, liquor, or other excise distributor license. BMC-84 does not replace this filing.

What does the bond cover?

Unpaid distributor excise tax and related filing defaults owed to the state. It does not cover cargo loss or customer credit.

Can the bond be reduced later?

Some departments allow a reduction or waiver after a clean filing history. That is the regulator’s call — keep the current bond in force until they say otherwise.

Also need coverage?

Same agency desk for commercial coverage

Need more than a bond? Through the same agency desk we can discuss commercial coverage for the whole business.

Contact us or call (877) 477-7578

Freight Bonds

View all bonds

BMC-84 freight broker, OTI, customs, SDDC, warehouse operator, and distributor filings.

View all bonds

Or call (877) 477-7578