California Subdivision Tax Bond Guide
In California, many counties require subdividers to file a surety bond before recording their final subdivision map.
Bond Overview
- Purpose: To guarantee payment of property taxes for a new subdivision
- Who Needs It: Subdivision developers (subdividers)
- Regulating Body: Several California counties
- Premium Rates: Credit-based, typically 2–3%
Keep scrolling to learn more about the bonding process.
What Are California Subdivision Tax Bonds?
California subdivision tax bonds ensure payment for property taxes and local assessments for new subdivisions. Several California counties require this type of license and permit bond before property can be recorded on a parcel map.
What Counties Require a Subdivision Tax Bond?
In California, the following counties require a subdivision tax bond:
If you need a bond for a location not listed, please call 1 (800) 308-4358 for assistance.
How Much Bond Coverage Do I Need?
Your local county will determine your bond amount based on your subdivision’s estimated future tax bill. Any current and delinquent taxes are also typically factored into this sum.
Each county has its own bonding process. For example, Los Angeles County requires you to complete a bond estimate declaration form. Check with your county’s tax official to confirm your required subdivision bond amount.
How Much Do California Subdivision Tax Bonds Cost?
California subdivision tax bonds are credit-based and typically cost 2–3% of the total bond amount. For example, qualified applicants can pay just $2,000 for $100,000 in coverage.
Your exact rate will depend on your bond amount and financial qualifications. Apply below to get your free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Do California Subdivision Tax Bonds Work?
A California subdivision tax bond is a legal contract between three parties:
- Principal: The subdivider purchasing the bond
- Obligee: The California county requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to pay all required property taxes and other assessments.
If you break the bond terms, harmed parties can file claims on the bond. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a California Subdivision Tax Bond?
Under California Code Section 66493, subdividers must file a surety bond with their local county unless otherwise stated. You must post the bond prior to the subdivision being officially recorded on a parcel map. Once you pay all property taxes and assessments, your county will release you from the bond requirement.
Many counties also allow you to file a letter of credit, cash collateral or certificate of deposit. For most applicants, a surety bond is the most affordable and efficient option. Learn more about surety bonds vs. other financial securities here.
How to Get a California Subdivision Tax Bond
SuretyBonds.com provides the fastest and easiest way to get a subdivision tax bond in California. Just follow these steps:
- Apply Online: Select your county, parcel map number or location, and coverage amount to receive a personalized quote.
- Pay Invoice: Complete your purchase online or over the phone.
- Receive Bond: Select your FedEx shipping option to receive your original bond form.
Upon receipt, sign and file the bond documentation with your county.
When Do California Subdivision Tax Bonds Expire?
California subdivision tax bonds expire annually. Your bond must remain active until you pay all required taxes to your local county. Once you fulfill your obligation, you will be released from the bond requirement.
How Do I Update My California Subdivision Tax Bond Form?
If you need to make any small adjustments to your official bond form, such as name or address, contact us at [email protected] with an explanation of the requested update.
If possible, we’ll issue a bond rider document to amend your subdivision tax bond free of charge.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit will typically increase your premium rate.
Apply for a free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
