Tax Collector Bond Guide
All public tax collectors in the United States need to file a surety bond. Learn how the tax collector bonding process works with this quick guide.
Bond Overview
- Purpose: To prevent loss due to unethical practices by tax officials
- Who Needs It: Hired or elected tax collectors in all states
- Required Amount: Usually $10,000 but requirements vary by state
- Premium Rates: Typically 2% to 7%, credit-based
What Is a Tax Collector Bond?
A tax collector surety bond is a type of public official surety bond used to prevent unethical behavior among tax collectors and ensure appropriate tax allocation. Tax collector bonds protect the public and government agencies from financial loss due to unethical tax practices by hired or elected tax officials.
SuretyBonds.com is licensed to issue tax collector bonds nationwide. We offer the best service and fastest bond delivery in the industry.
What Do Tax Collector Bonds Cover?
Bonding helps reinforce laws regulating tax collector performance for all duties—ranging from billing and cashier services to reports and remittances. The bond may also cover liability in the case of uncollected taxes.
Bonding Requirements for Collectors of Taxes
Tax collectors in every state must file a surety bond to protect public funds from mishandling. Bond coverage requirements for public officials involved with tax collection vary depending on local jurisdiction. In Mississippi, for example, deputy tax assessors must file a $10,000 surety bond while deputy tax collectors are required to get a $50,000 bond.
Check with your governing agency to determine the exact bond amount you need based on your position and jurisdiction.
How Does a Tax Collector Surety Bond Work?
Every surety bond works by binding three parties in a legal contract:
- The principal is the tax collector applying for the bond.
- The obligee is the government entity requiring the bond.
- The surety is the company issuing the bond and financially backing the tax collector’s ability to fulfill their obligation.
If the principal fails to comply with the contract terms, the surety bond protects the public and government agencies from financial loss for claims up to the full bond amount.
How Much Do Tax Collector Bonds Cost?
The premium cost depends on the amount of coverage you need, which varies by state, city or even county. Applicants with good credit will qualify for the best tax collector bond rates ranging anywhere from 2-7% of the bond amount. This means that a standard $10,000 tax collector surety bond typically costs just $200-$700.
Apply for Your Bond in Minutes
To become a bonded tax collector quickly and easily, just follow these four easy steps:
- Apply. Fill out our quick online contact form.
- Get your quote. We’ll provide the best price on the market.
- Purchase. Pay for your invoice online or over the phone.
- Receive your bond. We’ll send an instant digital copy of your bond and mail your original bond form, if necessary, per your shipping preferences.
Apply now to join thousands of satisfied SuretyBonds.com customers!
