Sales Tax Bonds
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- How much will a sales tax bond cost?
It is a percentage of the bond amount. Prices vary significantly depending on the risk to the surety and the specific bond requirement. Use our estimate tool to get an idea of costs. If you are ready to purchase a bond, you can apply on our website and get an exact price online.
- What is the process?
Apply online, get approved instantly, sign the indemnity agreement, pay on our website and we will send the bond to you.
- Do all states require a sales tax revenue bond?
No; however, many states do. View our state requirements list below. If your state is not listed, it is wise to contact it directly as requirements can change.
- Where can I get a sales use tax bond form?
We have forms on file; a list of which is provided below. If you do not see your bond, you need to obtain the bond form from the obligee.
- How is the bond amount calculated?
It is generally based on the business' location and dollar amount of sales. You need to determine the bond amount with the specific government department requiring the bond of you; many now have calculators on their websites to help you determine the bond amount you must post.
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How Much Do Sales Tax Bonds Cost?
The price is a portion of the bond amount, which can vary depending on the owner's personal credit, as well as personal and business financials. Smaller sales tax bond costs are based strictly on personal credit, while larger sales tax bonds require the additional review of personal and business financials. You can use our tool to get a quick estimate, or apply on our website to get a precise quote.
What Is A Sales Tax Bond?
It is a guarantee that sellers of goods, such as retail and convenience store owners, will properly account for and pay required taxes to the government. If the required taxes are not paid, a claim can be filed on the bond which the surety will pay initially; however, they will go back to the bond holder for reimbursement.
Which Sales Tax Bond Do I Need?
The type of sales tax bond needed will vary by the type of goods being sold, and the state in which the business operates.
A general sales and use tax bond is needed to sell goods other than alcohol, fuel or tobacco. You can apply for these bonds and get an instant approval online. Whether or not the state requirement will be satisfied with a general sales tax bond will vary among states, as each has unique bond requirements. Take a look at our state bond requirement list below. It is also wise to contact your state directly to determine any bond requirements, as these may be modified without notification.
In order to sell tobacco, fuel or alcohol, separate sales tax bonds are required, which are tobacco tax bonds, fuel tax bonds and alcohol tax bonds respectively. These bonds also guarantee taxes will be paid to the government.