What is a Sales Tax Bond?

A sales tax bond is a type of surety bond which guarantees that a business will pay sales tax to the state or local government. The bond further guarantees that businesses will report their earnings within the relevant deadlines as they are determined in the state.

Failure to pay collected funds or incorrect reporting can result in a bond claim. The purpose of the sales tax bond is to serve as a protection for the state and the public and guarantee compensation.

Sales tax bonds are usually requested by local governments and apply to different businesses depending on local regulations and laws. Unlike most financial guarantee bonds, the sales tax bond requires no collateral by bonding companies which makes it easier to obtain.

Bryant Surety Bonds has excellent rates for all types of sales tax bonds. In addition to our standard market rates, we are also able place high risk applicants through several markets. In fact, we are able to write a lot of high risk applicants with middle market rates helping those with poor credit make considerable savings.

Find the Bond You Need

The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".

Alaska Tax Liability Bond Municipality Of Anchorage Apply Now
Alaska Room Tax Liability Bond Municipality Of Anchorage Apply Now
Arizona Taxpayer Bond for Contractor Arizona Dept Of Revenue: Taxpayer Information Apply Now
California Parking Tax Collection City and County of San Francisco Apply Now
California Bond of Seller State Board of Equalization Apply Now
California User of Fuel Bond State Board Of Equalization Apply Now
Colorado Medical Marijuana License Department of Revenue Apply Now
Colorado City & County of Denver Retail Marijuana License B City and County of Denver Apply Now
Colorado Retail Marijuana License Bond Dept of Revenue, Marijuana Enforcement Division Apply Now
Colorado Retail Marijuana Excise Tax Bond State of Colorado, Department of Revenue Apply Now
Colorado Medical Marijuana License Bond City & County of Denver Apply Now
Colorado (City of Lafayette, CO) Retail Marijuana License B City of Lafayette Apply Now
Colorado (City of Aurora, CO) Retail Marijuana Establishmen City of Aurora - Marijuana Enforcement Division Apply Now
Delaware Non-Resident Contractor Division of Revenue Apply Now
Federal Government Food Stamp Collateral Bond US Department of Agriculture, Food and Nutrition Apply Now
Florida Sales and Use Tax Bond Florida Department of Revenue Apply Now
Indiana Permit Fee Bond Indiana Department of Revenue - OSW Services Apply Now
Kentucky KENTUCKY HIGHWAY USE Commonwealth of Kentucky Apply Now
Local Government Sales, Use & Consumer Tax Bond State Board of Equalization Apply Now
Local Government Meal Tax Bond City of Portsmouth Commissioner of the Revenue Apply Now
Mississippi Sales Tax Department of Revenue Apply Now
Missouri Transient Employer Bond Missouri Department of Revenue Apply Now
Missouri Sales & Use Tax Bond Missouri Dept of Revenue & Taxation Division Apply Now
North Dakota Sales and Tax Permit Office of the State Tax Commissioner Apply Now
Oklahoma Land Application Company Bond Oklahoma Corporation Commission Apply Now
Oklahoma Gross Production Tax Bond Oklahoma Corporation Comission Oil and Gas Divisio Apply Now
Oregon Miscellaneous Taxes Bond Department of Transportation Division Apply Now
Oregon Highway Use Tax Bond DOT Motors Carrier Transportation Division Apply Now
South Carolina Right Of Way Bond SC Dept of Trans Apply Now
South Dakota South Dakota Department of Revenue & Regulation Un South Dakota Department Of Revenue and Regulations Apply Now
Texas Combative Sports Bond For Gross Receipts Tax TX Dept of Licensing and Regulation Apply Now
Texas Continuous Bond of Seller (Sales Tax) Dept. of Licensing Apply Now
Texas Customs Broker Texas State Comptroller Apply Now
Utah Sales Tax Bond Utah State Tax Commission Apply Now
Vermont BOND TO STATE OF VERMONT State of Vermont Dept Taxes Apply Now
Virginia Meal Tax Bond (City Of Norfolk) City Of Norfolk Apply Now
Virginia Tax Bond Virginia Dept of Taxation Apply Now
Virginia Meal Tax Bond (City of Norfolk) City of Norfolk Apply Now
Virginia Food & Beverage Tax Bond (City of Hampton) City of Hampton Apply Now
Virginia Meal Tax Bond (City of Portsmouth) City of Portsmouth Apply Now
Virginia Meal Tax Bond (City of Norfolk) City of Norfolk Apply Now
Wisconsin Sales & Use Tax Wisconsin Dept of Revenue Apply Now
Wyoming Sales and Use Tax Bond (Multiple Contracts) State of Wyoming Apply Now

Types of Sales Tax Bonds

Oftentimes, a general sales tax bond or sales and use tax bond will be enough for businesses. Certain businesses though, such as those selling tobacco, alcohol, or fuel, may need to get a special bond, such as an alcohol bond, a fuel tax bond, a cigarette tax bond, etc. This, too, depends on state regulations, so applicants who are not sure what kind of bond they need should check with the relevant government institutions and agencies.

Sales tax bonds are sometimes also called differently, according to the state.

The Texas sales tax bond, for example, is also known as a Texas Continuous Bond of Seller (Sales Tax). In North Dakota, on the other hand, it is known as a North Dakota Sales and Use Tax Permit Surety Bond. These two, and all other similar types of bonds, fall under the category of sales tax bonds. For more information see our list below with the most popular sales tax bonds by state!

Sales Tax Bond Cost

Sales tax bond cost is strongly dependent on state regulations for the bond amount of every particular type of business.

As a general rule, though, the full amount of your sales tax bond (the amount you need to get bonded for) is based on your receipts or an estimate of the sales taxes you need to pay at the end of the year. Sometimes, as is the case with the Texas sales tax bond, this can also be based on the monthly tax liability instead of the yearly.

To get an accurate amount for your sales tax bond, it is always best to check with the government department or agency that requires you to get bonded. Besides, many of these departments also have calculators on their websites, which help you determine the amount of your sales tax bond.

The cost of your surety bond will be based on this amount. Sureties usually take the personal credit score of applicants as one of the most important factors when calculating their premium rate. The higher your credit score, the better your rate will be.

Standard market rates for sales tax bonds begin at 1% of the total bond amount for applicants with a credit score of 700. Applicants with a credit score between 650-699 can expect a rate between 2%-5% on their bond.

Bryant Surety Bonds works with a big network of A-rated and T-listed surety bond companies. Through our access to these markets we are able to secure the best and lowest rates for our clients, regardless of their credit type. We are also able to underwrite all types of sales tax bonds in all states which require them.

Our surety bond cost page can provide you with plenty of additional information about how bond cost is determined. Have a look!

Bad Credit Sales Tax Bond Program

We also have access to markets which provide bonds for applicants with poor credit. Through our Bad Credit Surety Bond Program such applicants are able to get bonded, despite their financial difficulties.

Due to the nature of sales tax bonds and because underwriting bonds for such applicants carries a greater risk, rates on sales tax bonds under our bad credit program start at 15%. But by getting bonded with Bryant Surety Bonds, applicants are sure to make considerable savings because of our dedication to always finding the best possible deal on all bonds!

How to Get Your Sales Tax Bond

Applying for a sales tax bond takes only a few minutes! Apply online through our website and provide us with a number of details about your sales tax bond. We will then get in touch with you and provide you with a quote on your surety bond, entirely free of charge! Getting approved and bonded only takes a little longer after that!

Our surety bond experts are there for you anytime! Call us at (866) 450-3412 to speak one of our experts if you have any questions related to sales tax bonds. If you’re not sure what kind of bond you need or how to apply, we will gladly help! Just give us a call!

If you wish to learn more, click on your state from the map below for information on tax bond requirements there.

About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.