What is a Sales Tax Bond?
A Texas sales tax bond is a business license applicant’s guarantee to make all required tax payments to the Texas Comptroller of Public Accounts in a timely manner. These are continuous bonds that must be renewed annually to avoid revocation of your business license.
A sales tax bond is a 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 taxes or incorrect tax 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 when taxes have not been paid.
Sales Tax Bonds are type of Surety Bonds required by the State Tax Office in case where vendor or retailor is behind in paying their Sales Tax on time.
Cost of a Sales Tax Bonds
Cost of a sales Tax bond vary in prices depending on the applicant’s credit history, type of business he is in, years of experience and other factors. Rate for the Sales Tax Bond vary from 3% to 15% of the amount of the bond.
Do I need this bond?
Sales tax bonds are usually requested by local governments and apply to different businesses depending on state regulations and laws. Unlike most financial guarantee bonds, the sales tax bond requires no collateral by bonding companies which makes it easier to obtain.
Whether you require this bond depends on your state’s laws on sales. Often, sellers of alcohol, tobacco, fuel, medical marijuana, and other similar products need to obtain this type of bond.
For more information or to get a quote contact All State Bonds, Inc. @ www.allstatesuretybonds.com or call an agent for a quick inquiry 800-374-9227Filed Under: Sales Tax Bond | Tagged With: houston sales tax bond, sales Tax bonds, sales tax use bond, surety bonds, texas sales tax bond