Sales and Use Tax Surety Bonds

Sales and Use Tax Surety Bonds:
Retailers are required to pay sales and use taxes and to file tax returns. Although you are required to pay and report sales and use taxes to your specific state entity, you may be required to provide proof of financial responsibility or a deposit in the form of a sales tax or sales and use tax bond.

A sales tax bond and sales use tax bond is a common way to guarantee compliance with the state or municipality which is requiring you to be bonded. It is the retailers responsibility to report the correct amount of sales and use tax and to pay the taxes or fees due to the state. To avoid paying a penalty and interest charges most retailers must also obtain a sellers permit which is usually accompanied by a sales tax bond or sales and use tax bond.