Under Missouri Senate Bill 368, a vehicle rental business that rents or leases motor vehicles, trailers, boats, or outboard vehicles must post a surety bond in the sum of $100,000. The Missouri Department of Revenue requires the bond to be submitted with the lease rental license application. This legislation was passed on July 9, 2019, and went into effect on August 28, 2019.
What does SB 368 change?
Previously, there were no requirements to obtain a vehicle rental business license other than completing an application. As of August 28, a surety bond in the amount of $100,00 must be included when submitting the application for a vehicle rental or leasing company license. Licensed vehicle rental companies are also required to pay a $250 annual fee to the Director of the Department of Revenue.
How do I get a vehicle rental or lease license?
To apply for a vehicle rental or lease license, visit the Missouri Department of Motor Vehicles licensing page and fill out the rental or lease license application. Although there is no application fee, vehicle rental companies need to pay a $250 annual license fee required by SB 368. The application requires information on all business branches and information on the business’s corporate structure and franchising, if applicable. Applicants can register with the Missouri Department of Revenue and submit the application online.
Why do I need a surety bond for my vehicle rental company?
A surety bond is needed to get a license as a lease or rental business because it protects customers from any fraudulent behavior on the part of the licensee. In the event that the business commits fraud, the customer is able to make a claim on the surety bond to cover their loss up to the full amount of the $100,000 bond.
Do you need a surety bond for your vehicle rental business?
Our team of experts at SuretyBonds.com are licensed to issue surety bonds nationwide. For a free, no-obligation quote on your surety bond, visit SuretyBonds.com or call 1 (800) 308-4358 today.