What is a Nevada Sales Tax Bond?
The Nevada Revised Statutes require all retailers to obtain a sales tax permit before going into business. In order to obtain this permit, these individuals must post a Nevada sales tax bond with the Nevada Department of Taxation. Retailers whose monthly sales tax is $333 or less are exempt from that requirement.
This surety bond guarantees retailers’ and sellers’ compliance with Chapters 372, 374, 377, 377A, and 377B of Title 32 of the Nevada Revised Statutes, which amounts to regular and timely payments of taxes, interest, and penalties.
Businesses that fail to comply with the above requirements will have a claim filed against their bond by the Department. The sales tax bond is an agreement between the Nevada retailer (the bond principal), the Nevada Department of Taxation (the bond obligee), and the surety bond company which issues the bond.
Based on this agreement, the surety is required to compensate the Department if the latter files a claim. If the surety pays out compensation to the Department under this surety bond, the bonded retailer has to repay the surety as part of the agreement. That’s why claims are best avoided.
Find out more about the cost of the bond below.
Nevada Sales Tax Bond Cost
The cost of your Nevada sales tax bond is a small percentage of the full bond amount required by the Department.
The full amount is determined by the Department upon applying for your permit, but is typically equal to around three times your average monthly sales tax.
Your individual bond rate– the actual cost of the bond– is depends on your finances. Your personal credit score is a key indicator of your financial stability, and the most important factor that determines your bond rate. Financial statements, your assets and liquidity, and even your professional experience are also taken into consideration.
Applicants with an excellent credit score can expect to get a price on their bond that is between 1% and 3% of the full amount.
The surety bond agency that you choose also influences the cost of your bond, though applicants often don’t realize this. Agencies work with a variety of surety bond companies that supply and back the bonds. Different companies have different ratings, and access to a variety of markets.
We at Bryant Surety Bonds only work with A-rated and T-listed companies. This means we can provide our customers with bonds at exclusive rates, backed by the best sureties in the whole country.
Bad Credit Bonds
Applicants who have a low credit score, or don’t have a credit score at all, can almost always still get bonded with us.
Thanks to our Bad Credit Program we have the capabilities of furnishing such applicants with the same top-quality bonds we offer everyone, at exclusive rates.
The rates on these bonds are higher than for applicants with perfect credit, in order to reduce the risk involved.
Yet, applicants who get a bond under this program have the chance to improve their credit score over time, and receive a lower rate as soon at their next surety bond renewal deadline. Rates are determined anew every year, so an improvement in credit score almost always translates into a lower rate on your bond.
Start Your Application Today
Fill out our online surety bond application to get your bond. The application is non-binding, and we send out free quotes on our bonds to all our applicants. So if you only want to receive a quote initially, just go ahead and submit the application.
It only takes a short time to process these bonds, so you can expect to hear from us soon.
You can also call us at 866.450.3412 anytime. Our surety bond experts are available to speak to you anytime and provide you with more information regarding sales tax bonds in Nevada. If you have other questions regarding surety bonds or need any help, they will be happy to assist you. We look forward to hearing from you!