North Dakota Sales and Use Tax Bond Overview
- Purpose: To ensure businesses pay state and local sales taxes
- Who Needs It: Certain businesses that make taxable retail sales of goods and services
- Regulating Body: The Office of the State Tax Commissioner
- Bond Amount: Determined by the volume of taxed merchandise sold
- Minimum Price: $100 or $20/$1,000
What Is a North Dakota Sales and Use Tax Bond?
A North Dakota sales and use tax surety bond ensures that retailers pay all state and local taxes. It serves as financial security if a business owner doesn’t pay taxes, fines or penalties owed.
The North Dakota Office of the State Tax Commissioner determines bond amounts on a case-to-case basis. Bond amounts are usually determined by the volume of taxed merchandise sold by the applicant.
What Are the Sales and Use Tax Requirements in ND?
In North Dakota, retailers must collect sales tax on all sales. There is a 5% general sales tax and the following gross receipts taxes:
- Alcohol sales: 7%
- New farm machinery sales: 3%
- New mobile home sales: 3%
Additionally, cities and counties can levy local sales and use taxes. Use taxes must be paid if the seller did not collect sales tax on tangible personal property that was imported into North Dakota for use.
How Much Do Sales Tax Bonds Cost?
North Dakota tax bond premiums start at $100. Bond amounts up to $25,000 cost $20 per $1,000 of coverage. Bonds greater than $25,000 require underwriting. The amount you’ll pay depends on a review of your personal credit report.
Here are some examples of how premium rates work:
- $2,500 bond: $100 premium
- $5,000 bond: $100 premium
- $10,000 bond: $200 premium
- $25,000 bond: $500 premium
- $50,000 bond: Credit-based
Start your application now to get your bond.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a North Dakota Sales and Use Tax Bond Work?
All surety bonds create a legal contract between a principal, obligee and surety provider. For this sales and use tax bond, you are the principal and you have an obligation to remit taxes to the Office of the State Commissioner.
| Bond Party | Description |
|---|---|
| 1) Principal | The retailers filing the bond |
| 2) Obligee | The Office of the State Tax Commissioner |
| 3) Surety | The surety provider issuing the bond |
If you break the bond terms, you become liable for bond claims. The state can file a claim on the bond, which the surety will reimburse. However, you have to repay the surety so it is important to avoid claims.
How Do I Get a Sales and Use Tax Bond in North Dakota?
If you need bond coverage of $25,000 or less, you can purchase your bond instantly on this page. For larger bond amounts, submit a quote request. We’ll get back to you within one business day or less with your personalized invoice.
Once you complete your purchase, we’ll mail you the original bond form via your selected shipping method. Sign the bond and get it notarized then submit it to the Office of the State Tax Commissioner.
Can I Get Bonded With Bad Credit?
North Dakota sales and use tax bonds up to $25,000 are available at a flat rate with no credit check.
If you need a bond amount greater than $25,000, you may still be able to get bonded with bad credit. Quotes are free and have no impact on your credit score — apply now!
How Do I Renew My Bond?
Your bond will have a one-year term. To renew, pay your renewal premium before the bond expires. We’ll extend the existing bond’s coverage for another term.
To cancel the bond, you must provide 30-days written notice to the surety provider.
How to Get a Sales and Use Tax Permit in North Dakota
To obtain a sales and use tax permit, submit an application for income tax withholding and sales and use tax permit to the Office of the State Tax Commissioner using the online portal.
