Texas Sales Tax Surety Bonds
What is a Texas Sales Tax Bond or Continuous Bond of Seller?A Texas sales tax bond or continuous bond of seller, is an agreement that protects the government by ensuring retailers will pay adequate sales taxes on assets acquired during the calendar year. Failure to conduct business accordingly may result in the company being fined up to the amount listed on the sales tax bond form.
How much does a continuous seller bond cost in Texas?The Texas Comptroller of Public Accounts requires all retailers in the state to get a Texas Sales Tax Bond, aka continuous bond of seller, when they apply for their permit to conduct business as a retailer. They must have their bond secured before conducting business. The required bond amount varies based on the retailer’s total revenue accrued in the previous calendar year and is ultimately determined by the Texas Comptroller of Public Accounts. The maximum bond amount is $100,000 or 4 times the amount of the retailer’s average monthly tax liability, whichever is greater. The cost of this bond is subject to underwriting, which means the price you’ll pay is based not only on your required bond amount but also on a review of your personal credit report.
What are the Sales Tax Bond conditions?The Texas Comptroller of Public Accounts requires all retailers and persons selling taxable merchandise in the state to post a sales tax surety bond. In the event of cancellation, the surety must give the Comptroller of Public Accounts a written cancellation notice 30 days prior to the effective termination date. The surety remains liable for any claims brought against the bond during this 30-day period. These bonds expire annually on December 31.
Why do I need this bond?By posting a Texas continuous bond of seller, the principal (retailer) agrees to pay all sales taxes on items sold. If the principal fails to submit the required tax payments, the state can file a claim against the principal. Initially, the surety is responsible for covering all damages up to the full bond amount, but the principal must reimburse the surety for all damages paid out. Sellers and retailers required by the Comptroller to obtain this bond include:
- persons making sales at auctions of tangible personal property
- persons who make more than 2 sales during a 12-month period
- hotel, motel, or office owners that contract for telecommunications services
- persons who regularly solicit sales of taxable items by distributing advertising
- persons authorized to sell, rent or lease property
- and more
How do I obtain a Texas Sales Tax Bond?Ready to purchase your Texas sales tax bond? Apply here! For more information or to get your free quote for purchasing a surety bond in the state of Texas, call us today!
Bad Credit BondsIf you are afraid that your financial situation will keep you from purchasing sales tax bonds, we may be able to help. Contact us today to get free information on the price of bad credit bonds.
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As a surety bond broker, we work for YOU not the surety company. We are licensed nationwide and appointed by 25 surety companies so that we are able to offer the best solution for all surety bond needs. We are a small organization that strives to make you feel like part of our family.
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Three party agreement
Surety Bond Definition: The definition of a surety bond is as follows: A surety bond is a binding agreement between three parties. This agreement sets forth a financial guarantee by one party ( “surety” ) to another party ( “obligee” ) that a third party ( “principal” ) will fulfill required obligations to the obligee, and that state, federal, and local laws and applicable regulations will be adhered to. Let’s examine each of the three parties.Learn more about surety bonds
Bad Credit – Fast Approvals – Lowest Rates Available.
- Credit below 650 and/or have blemishes on credit report.
- Average cost is 5-15% of the bond amount.
- Available for all commercial bonds.
Why does credit matter? Applying for a surety bond is similar to applying for a loan. You are asking a surety company to back you financially. Reviewing credit is the best method for the surety to understand their risk. All sureties review credit as a view only and should have no effect on your credit score. While it is true that bad credit makes it harder to obtain a competitive quote, we are committed to making sure all of our customers have access to the best possible rates. While we can’t guarantee that we can provide a bond for the most extreme bad credit situations, we strive to make sure no stone is unturned! In other words, if you are insurable, we will get it written. Contact us today and let us put together an online quote for you that will exceed your expectations.