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A Guide to Tax Collector Bonds
SuretyBonds.com is legally licensed to issue tax collector bonds nationwide. Whether you’re a tax collector in Arkansas, California, New Jersey or Mississippi, we can help!
Tax collector bonds cover individuals who collect taxes for government agencies. This type of bond is used to guarantee hired or elected officials will perform their tax-collecting duties legally and ethically. The bond may also cover liability in the case of uncollected taxes. Our expert surety specialists have developed this guide to explain how tax collector bonding works.
What is a Tax Collector Bond?
A tax collector surety bond is a type of public official surety bond. Although elected or hired to serve the public, some tax collectors may still behave unethically. For this reason, a tax collector bond is a surety bond required in every state to protect the public and hold tax collectors accountable. All states require tax collectors to be bonded to ensure that all laws regulating the performance of tax collectors are upheld and that all business - ranging from billing and cashier services to reports and remittance - is conducted ethically.
Tax Collector Bonds Protect the Public
Local government agencies require tax officials to be bonded because it holds them financially accountable for completing duties in an appropriate manner. As a preventative measure, surety bonds ensure that public taxes are allocated appropriately. Depending on the bond’s contractual terms, a tax collector bond might also cover liability in the case of uncollected taxes.
The degree of tax collector bond protection also varies widely depending on the jurisdiction. For example, the state of Mississippi requires deputy tax assessors to have a $10,000 surety bond while deputy tax collectors are required to get a $50,000 surety bond. In this instance, public funds managed by deputy tax collectors receive a greater degree of protection than do those of deputy tax assessors.
Thanks to tax collector bonds, the public can rest assured that government agencies take important preventative measures to provide the public with accurate and ethical tax collection services.
Learn More About Surety Bonds.
A tax collector bond is a type of surety bond that’s underwritten by many insurance companies. A surety bond is a type of insurance instrument that involves three parties.
- The principal is the individual applying for the bond or in this case, the tax collector.
- The obligee is the entity that requires the bond, which in this case is a governing agency, whether it be at the municipal, county, state or federal level.
- The surety is the insurance underwriter that issues the bond and assures the tax collector will fulfill his or her duties as required by the governing agency.
Tax collectors must perform many duties while collecting taxes. If an individual fails to comply to the terms of the bond and performs the duties of the position inappropriately, the tax collector surety bond acts as a safety net for both the government and the general public.
Pay A Low Rate For Your Bond.
The premium you’ll pay depends on the amount of coverage you need, which varies by state and sometimes county. These bond amounts can be quite high, even upwards of $100,000. However, 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. Get your free, no-obligation price quote today!
Enjoy Quick, Easy & Accurate Bonding.
To get bonded quickly and easily, just follow these four easy steps:
- Apply. Simply fill out our online contact form and your account manager will contact you within 1 business day to walk you through the application process.
- Get your free price quote. Your account manager will shop your bond to find the best price. You’ll be provided with a free price quote without an obligation to buy.
- Pay for your bond. Your bond will be issued as soon as your payment is processed.
- Receive your bond. You’ll receive a copy of your bond via email and your original bond form will arrive in the mail according to your shipping preferences.