Kentucky Form 72A010, Motor Fuel Tax Refund Permit Holder’s Bond, is a $1,000 surety bond associated with certain Kentucky motor fuel tax refund claims. The bond applies to a principal who uses gasoline and/or special fuels for agricultural purposes, or special fuels for other nonhighway purposes, and who may apply to the Commonwealth of Kentucky for refunds of Kentucky motor fuel tax paid on qualifying fuel. The bond requires the principal to comply with Kentucky Revised Statutes 138.344 through 138.355 and to repay the Commonwealth for any refund received when the principal was not entitled to it. A surety joins the principal in providing the $1,000 bond obligation.
Unlike a refund application that calculates gallons or tax amounts, this form establishes the bond securing the permit holder’s compliance with the applicable Kentucky motor fuel refund requirements.
Who Should Use Kentucky Form 72A010?
This bond is intended for a motor fuel tax refund permit holder who is engaged in, or preparing to engage in:
- Using gasoline for agricultural purposes.
- Using special fuels for agricultural purposes.
- Using special fuels for other nonhighway purposes.
The form states that the principal may be entitled to a refund of Kentucky tax paid on motor fuel used exclusively for the qualifying purposes described in the bond.
The form involves two primary parties:
- Principal: The person or business applying for motor fuel tax refunds and covered by the bond.
- Surety: The party providing the bond and agreeing to the obligation with the principal.
How To File Kentucky Form 72A010
After the bond has been completed and properly executed by the applicable parties, return it to:
Department of Revenue
Motor Fuels Tax Compliance Section
P.O. Box 1303
Frankfort, Kentucky 40602-1303
The return address appears directly on the form.
Before completing the bond, gather:
- Assigned surety bond number.
- Principal’s full legal name.
- Principal’s street address or P.O. Box.
- Principal’s city or town.
- Principal’s county.
- Principal’s state.
- Full legal name of the surety.
- Surety’s address.
- Bond execution date.
- Information for the person authorized to act for the principal.
- Information for the person authorized to act for the surety.
- Kentucky resident agent information for the surety company, as applicable.
Names should be entered consistently throughout the bond.
How To Complete Kentucky Form 72A010
Start with the surety bond number and identification information for the principal and surety. Then review the bond conditions before completing the execution section.
Surety Bond Identification
Surety Bond No.
Enter the bond number assigned to this surety bond.
Use the exact number provided for the bond. Do not create or estimate a bond number if one has not yet been assigned.
Principal Information
Name of Principal
Enter the complete legal name of the person, business, or organization serving as the principal.
The principal is the party using qualifying motor fuel and making, or expecting to make, Kentucky motor fuel tax refund claims.
Use the same principal name everywhere it is requested on the bond.
Street or P.O. Box
Enter the principal’s street address or post office box.
Use the address associated with the principal covered by the bond.
City or Town
Enter the city or town corresponding with the principal’s address.
County
Enter the county associated with the principal.
State
Enter the principal’s state.
Review the name and address section carefully before continuing because this information identifies the party legally covered by the bond.
Surety Information
Name of Surety
Enter the full legal name of the surety providing the bond.
Make sure the surety name agrees with the surety information used elsewhere in the document.
Address of Surety
Enter the surety’s address.
Do not place the principal’s address in this field. The principal and surety have separate identification areas.
Understanding the $1,000 Bond Amount
The bond states that the principal and surety are bound to the Commonwealth of Kentucky in the amount of:
$1,000
This amount is already established by the form and is not a calculation that the applicant needs to perform.
The bond is intended to secure prompt and faithful compliance with Kentucky Revised Statutes 138.344 through 138.355.
The document also states that the obligation extends jointly and severally to the applicable heirs, executors, administrators, successors, and assigns.
Understanding the Motor Fuel Refund Activity Covered by the Bond
The bond describes the activities for which the principal may be seeking motor fuel tax refunds.
The principal may be engaged in the consumption of:
- Gasoline for agricultural purposes.
- Special fuels for agricultural purposes.
- Special fuels for other nonhighway purposes.
The fuel must be used for the purposes covered by the bond for the related Kentucky tax refund provisions to apply.
The document also recognizes that the principal may submit refund applications to the Commonwealth of Kentucky from time to time.
There is no amount to calculate in this paragraph. It describes the circumstances and obligations under which the bond is being provided.
Bond Condition and Principal Name
The bond contains another blank within the paragraph beginning with the bond conditions.
Name of Principal in Bond Condition
Enter the same legal name of the principal that was entered at the beginning of the bond.
Do not use a different trade name or variation unless that is the legal name applicable to the bond.
This field identifies the bonded party that must comply with the applicable statutes and refund requirements.
Repayment of Improper Refunds
The bond requires the principal to comply faithfully with the referenced Kentucky statutes.
It also requires repayment to the Commonwealth of Kentucky of any motor fuel tax refunds to which the principal was not entitled.
If the principal fulfills the obligations described in the bond, the bond obligation becomes void under its terms. Otherwise, it remains in effect.
There is no separate dollar field to complete for this provision.
Termination of the Bond
The form permits the surety to terminate the bond.
To do so, the surety must provide written notice to:
- The Kentucky Department of Revenue.
- The principal.
The notice must be sent by registered mail 60 days in advance.
This section describes a future termination procedure. It is not a field that needs to be completed when initially filing the bond.
Bond Execution Section
After the parties have reviewed the bond terms, complete the execution date and the principal and surety sections.
Date of Execution
Day
Enter the numerical day on which the bond is executed.
For example, for September 15, enter:
15
Month
Enter the month in which the bond is executed.
Year
Complete the year after the preprinted “20” portion.
The completed date should represent the actual execution date of the bond.
Principal Execution
Principal
Enter the principal’s name on the line labeled Principal.
Use the same legal name entered in the identification section at the beginning of the bond.
By – Principal
The form provides a separate By line underneath the principal.
The person authorized to execute the bond for the principal should complete this area as appropriate.
If the principal is an organization, make sure the person acting for the organization has the necessary authority to execute the bond.
Surety Execution
Surety
Enter the name of the surety on the line labeled Surety.
The name should match the surety identified earlier in the bond.
By – Surety
An authorized representative of the surety should complete the corresponding By line.
Make sure the surety execution information relates to the same surety named at the beginning of the bond.
Kentucky Resident Agent of Surety Company
Kentucky Resident Agent of Surety Company
Complete the line for the Kentucky resident agent of the surety company as applicable.
The information entered here should identify the Kentucky resident agent associated with the surety providing the bond.
Because this is part of a legal bond execution, the principal and surety should make sure all applicable signature and representative requirements are satisfied before submitting the form.
Understanding the Principal and Surety Responsibilities
The bond creates responsibilities for both parties.
The principal is responsible for complying with the Kentucky statutes referenced by the form and repaying refunds to which the principal is not entitled.
The surety joins the principal in the $1,000 bond obligation.
If the conditions of the bond are satisfied, the obligation can become void according to its terms. If those conditions are not satisfied, the bond remains in effect.
The surety also has the ability to terminate the bond by following the 60-day registered-mail notice procedure stated on the form.
Where To Return the Completed Bond
Send the completed bond to:
Kentucky Department of Revenue
Motor Fuels Tax Compliance Section
P.O. Box 1303
Frankfort, Kentucky 40602-1303
Before mailing the bond, make sure all principal, surety, execution, and resident-agent information that applies has been completed.
Department Approval Section
The bottom of the form contains an approval area associated with the Supervisor, Motor Fuels Tax Compliance Section.
Applicants and surety representatives should not complete this approval area as if they were the Department reviewer.
Approved
Leave the Department approval date area for the appropriate Department processing.
By
The corresponding approval line is for the Department representative handling the bond.
Supervisor, Motor Fuels Tax Compliance Section
This identifies the Department official associated with the approval portion of the form.
Common Kentucky Form 72A010 Mistakes to Avoid
A common mistake is entering different versions of the principal’s name in different parts of the bond. Use the same legal principal name consistently.
Also make sure the principal’s complete location information is provided, including the street or P.O. Box, city or town, county, and state.
Do not confuse the principal with the surety. Each party has separate name and address fields.
Enter the actual surety bond number rather than making up a number.
When completing the bond-condition paragraph, repeat the correct principal name in the blank provided.
Do not overlook the execution date.
Make sure the Principal and Surety sections are properly completed, including the applicable By lines.
Complete the Kentucky resident agent information when applicable to the surety arrangement.
Finally, do not complete the Department approval area at the bottom as though it were part of the applicant’s execution section.
Final Review Before Filing
Before submitting Kentucky Form 72A010, verify that:
- The correct surety bond number is entered.
- The principal’s full legal name is accurate.
- The principal’s street address or P.O. Box is complete.
- The correct city or town is entered.
- The principal’s county is correct.
- The principal’s state is entered.
- The surety’s full legal name is correct.
- The surety’s address is complete.
- The principal’s name is repeated correctly in the bond-condition section.
- You understand that the bond amount is $1,000.
- The bond relates to compliance with Kentucky Revised Statutes 138.344 through 138.355.
- The fuel activity covered by the bond matches the applicable agricultural or other qualifying nonhighway purpose.
- The principal understands the requirement to repay refunds to which it is not entitled.
- The day, month, and year of bond execution are complete.
- The Principal section is properly completed.
- The principal’s applicable By line is completed.
- The Surety section is properly completed.
- The surety’s applicable By line is completed.
- Kentucky resident agent information is completed when applicable.
- The Department approval area has been left for Department processing.
- The completed bond is ready to be returned to the Motor Fuels Tax Compliance Section at the address shown above.