A Sales Tax bond, also referred to as a Sales and Use Tax bond, is a type of financial guarantee surety bond. Sales Tax bonds are required of some retailers and other businesses that provide taxable goods and services. The bond provides a guarantee that the sales tax collected by the business will be remitted to the state or local government in a timely manner.
Sales Tax bonds may be required up front prior to the business starting operations or, in some cases, the bond may not be required until there has been a delinquency in the sales tax remittances.
The state or local government agency will determine or provide a way to determine the required bond amount. Often times, the bond amount is based on a multiple of the average monthly sales tax liability for the business over a period of time. Common sales tax bond amounts range from $2,000 to $50,000. The bond amounts can be lower or higher than that range of course.
Sales Tax bonds are simple to process. The bonds usually have a very quick turnaround. Financial guarantee type surety bonds often require financials to accompany the bond application. A Viking agent will let you know exactly what is needed to get the best quote for your Sales Tax Bond.
The bonding process for an Auto Dealer is simple. Start with a quote, end with your bond in hand. We keep the process simple.