An Arizona IFTA bond is not charged to every motor carrier. The Arizona Department of Transportation (ADOT) Motor Vehicle Division requires it only when an International Fuel Tax Agreement (IFTA) applicant or licensee is judged a collection risk, and when it is required the amount is set by the ADOT director at up to $100,000 (A.R.S. 28-5736). The amount follows the IFTA standard of at least twice your estimated average tax liability for the reporting period. The bond guarantees that you will file true IFTA reports and pay all use-fuel taxes, fees, penalties, and interest you owe the state.
| Detail | Answer |
|---|---|
| Who requires it | Arizona Department of Transportation (ADOT), Motor Vehicle Division, IFTA program |
| Governing law | A.R.S. Title 28, Chapter 16, Article 2 (use fuel tax); bond authority at A.R.S. 28-5736. Amount basis follows the IFTA Procedures Manual bonding provision. |
| Official form | ADOT MVD Form 96-0224, “IFTA Bond” |
| Bond amount | Variable. Set by the ADOT director, generally at least twice your estimated average tax liability for the reporting period, capped at $100,000 |
| Premium basis | A percentage of the bond amount, set by the surety based on the applicant’s credit and finances (not a fixed fee). See the cost section. |
| Coverage term | Continuous; stays in force until released or canceled by ADOT [VERIFY against A.R.S. 28-5736 / Form 96-0224: exact term and cancellation notice] |
| Obligee | The State of Arizona (through ADOT) [VERIFY against Form 96-0224: exact obligee wording] |
How much is the Arizona IFTA bond?
There is no single set dollar figure. The ADOT director prescribes the amount case by case, within the limits below.
| Factor | How it works |
|---|---|
| Who sets the amount | The ADOT director prescribes the required amount (A.R.S. 28-5736). |
| Calculation basis | At least twice your estimated average tax liability for the tax reporting period (IFTA Procedures Manual, bonding provision). |
| Statutory maximum | The bond cannot exceed $100,000 (A.R.S. 28-5736). |
| Stated minimum | No fixed statutory minimum; the floor is driven by your estimated liability [VERIFY against ADOT / IFTA Procedures Manual bonding provision: any stated dollar minimum]. |
Because the figure scales with your own fuel-tax liability, a small fleet’s bond and a large fleet’s bond can differ widely. If you are unsure what amount ADOT will require for your situation, confirm the figure with ADOT before you buy the bond.
What does the Arizona IFTA bond cover?
The bond is a financial guarantee that protects the State of Arizona, not the carrier. Under A.R.S. 28-5736 it is conditioned on the interstate user (the carrier) faithfully complying with the use-fuel tax article and promptly filing true reports and paying all use-fuel taxes and fees, together with all penalties and interest.
In practice, if a bonded carrier fails to file IFTA reports or fails to pay the fuel taxes it owes, ADOT can make a claim against the bond to recover the unpaid amount up to the bond’s penal sum. The surety pays the state, and the carrier must then repay the surety in full. The bond does not cover the carrier’s own losses and is not insurance for the carrier’s business.
How much does the Arizona IFTA bond cost?
You pay a premium (a fraction of the full bond amount), not the entire bond amount.
[CLIENT FLAG: insert All n One pricing. The premium is a percentage of the bond amount, set by the surety based on the applicant’s credit, financials, and the bond size. Do not publish a specific rate or dollar premium until All n One supplies approved pricing.]
To get an exact quote, request pricing using the link or phone number below.
Is the IFTA bond the same as an IFTA license or IRP registration?
No. These are separate requirements. Most carriers handle all of them with ADOT, but they are not interchangeable.
- IFTA license and decals: Your IFTA license and quarterly fuel-tax reporting are required for qualified interstate carriers based in Arizona. The bond is a separate security ADOT can require on top of the license when it views you as a collection risk. Most carriers in good standing never have to post the bond.
- IRP (apportioned registration): The International Registration Plan governs how your vehicle registration fees are apportioned among states. That is a registration program, not a fuel-tax security. An IFTA bond does not satisfy an IRP requirement, and vice versa.
- General fuel tax license: The IFTA bond is tied specifically to the use-fuel (diesel) tax owed under IFTA. It is distinct from licensing for fuel suppliers, vendors, or other Arizona fuel-tax accounts.
How do I get bonded and file with ADOT?
- Confirm ADOT requires the bond. ADOT will tell you whether your IFTA application or license requires security. This typically applies when you lack a verifiable carrier history, a prior license was not in good standing, or you have a record of late or missing reports or payments.
- Get the required amount from ADOT. Ask ADOT for the dollar amount the director has set for your account, since the surety must issue the bond in that exact penal sum.
- Request a quote. Apply with All n One for the IFTA bond in the required amount. The surety reviews your credit and finances and quotes a premium.
- Pay the premium and receive the bond. Once approved and paid, the surety issues the executed bond on ADOT MVD Form 96-0224 with the principal (your business), the surety, and the bond amount.
- File the bond with ADOT. Submit the signed, sealed Form 96-0224 to ADOT’s IFTA program along with your IFTA application or as directed. ADOT activates or maintains your IFTA license once the bond is on file.
- Keep it active. Maintain the bond and stay current on your quarterly IFTA filings and payments. The bond stays in force until ADOT releases it [VERIFY against A.R.S. 28-5736 / Form 96-0224: release and cancellation process].
Frequently asked questions
Does every Arizona IFTA carrier need a bond?
No. The bond is the exception, not the rule. ADOT requires it only when it has reason to believe a carrier may not meet its IFTA obligations, such as an applicant with no verifiable carrier history, a prior license not in good standing, or a record of late or missing tax reports or payments.
Who decides the bond amount?
The ADOT director sets the amount under A.R.S. 28-5736. It generally tracks at least twice your estimated average tax liability for the reporting period and cannot exceed $100,000.
What is the most the bond can be?
$100,000. A.R.S. 28-5736 caps the bond at that figure.
What happens if I do not pay my fuel taxes?
ADOT can file a claim against the bond to recover the unpaid use-fuel taxes, fees, penalties, and interest, up to the bond amount. The surety pays the state, and you must reimburse the surety.
Is the IFTA bond the same as insurance?
No. The bond protects the State of Arizona, not your business. If a claim is paid, you repay the surety in full, so it functions as a guarantee, not as coverage for your own losses.
How long does the bond last?
It is a continuous bond that remains in force until ADOT releases it or it is properly canceled [VERIFY against A.R.S. 28-5736 / Form 96-0224: exact term and cancellation/release provision].
Which form do I use?
ADOT MVD Form 96-0224, “IFTA Bond.” Your surety completes and executes it, and you file it with ADOT.
Can I get the bond if my credit is poor?
Often yes. Pricing and terms depend on the applicant’s credit and finances. Reach out for a quote so the surety can review your situation.
