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