Texas Sales Tax Bond

Texas Sales Tax Bond

In Texas, the State Comptroller requires a Continuous Bond of Seller (more commonly known as a Sales Tax Bond) to be filed by Sales and Use Tax Permit holders who have difficulty paying due taxes in a timely manner. The bond limit starts at $100,000 and is used by the Comptroller as security to guarantee payment of taxes.

APPLY FOR YOUR BOND

Jet works directly with you during the bonding process — meaning, there are no middlemen or brokers to meddle up your Sales Tax Bond purchase.

What Is the Lowest Price for the Sales Tax Bond?

You can purchase your bond for as low as $4,000 with Jet! Rates can vary and are based on the required bond limit, as well as a soft credit check and review of financial statements. The chart below shows rates that a preferred credit application would be approved for.

The minimum limit for the Sales Tax Bond is $100,000. If your monthly tax liability multiplied by four exceeds $100,000, then that number is the amount of your bond limit.

Why Is the Sales Tax Bond Required?

This bond requirement was set up by the Texas Comptroller to make sure due taxes are paid if the seller fails to complete tax payments. Taxes must be paid by the 20th day of each month, unless the Comptroller allows for tax payments to be paid quarterly for those who owe less than $500 for a month or $1,500 for a quarter.

How to Apply for the Sales Tax Bond With Jet

It only takes a minute to submit a Sales Tax Bond application online! Our website takes you through the application, only asking for the required information. A soft credit check (meaning it will not affect your credit score like a hard pull) is part of the application, so your social security number will be needed.

After you are done, your application will be submitted for review by a Jet underwriter. Any additional documents, like financial statements, may be requested at this time. After the review is complete, your quote will be emailed to you with a link that you can click to purchase.

Can Jet File the Sales Tax Bond for Me?

Once you have purchased your Sales Tax Bond, Jet can file it for you directly with the Comptroller. If you need to submit it yourself (maybe with your initial permit application), you can select to have the bond mailed to you when you are submitting payment information. You will need to mail it to the following address: 

Texas Comptroller of Public Accounts 
PO Box 13528 
Austin, Texas 78711-3528

Can I Cancel My Sales Tax Bond and Get a Refund?

Yes, you can cancel your Sales Tax Bond with Jet and refund any unused time. Just send an email to [email protected] to start the process. We will need to notify the Comptroller to start the 30-day period before the cancellation is final. The refund will only be calculated after the 30 days are up and the Comptroller releases Jet from any further liability.

How to Renew the Sales Tax Bond

When your term is getting near its end, Jet will send you a renewal notice through the mail and email. With either method, renewing is just a matter of confirming the information if there are no changes to the bond limit; if your bond limit has changed, please let us know so we can get you a new quote that reflects the amount of bond coverage needed.

How Does a Seller Avoid Sales Tax Bond Claims?

The Sales Tax Bond is actually very simple in its purpose: to ensure that the Comptroller receives the amount due from tax payments, including penalties and interest. The seller must pay taxes monthly (or quarterly under certain circumstances) on the 20th day of the month. Failure to fulfill tax payments would result in the Comptroller seeking the amount that is due from the bond. 

The Comptroller has the right to seek compensation from the bond before any other remedies could occur. The Comptroller can provide any taxpaying evidence (or lack thereof) in support of their claim; if you have any paperwork for your defense, now would be the time to present it. If the claim is found to be valid (which is usually the case when a government agency provides evidence), Jet will pay out the claim. However, you are not released from liability — you must pay Jet back in the full amount of the claim payout. Additionally, you must file a new bond within 10 days to avoid having your license suspended.

Texas Sales Tax Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: