Utah Sales Tax Bond Guide
If the Utah State Tax Commission requires you to get a sales tax bond, you’re in the right place. In this guide, we outline exactly how these surety bonds work and what you need to know before buying.
Bond Overview
- Purpose: To guarantee payment of sales taxes
- Who Needs It: Business owners with a history of delinquent tax payments
- Regulating Body: The Utah State Tax Commission
- Required Coverage: Varies based on tax liability
- Premium Rate: Credit-based, starting at 1.5% of the bond amount
What Is a Utah Sales Tax Bond?
A Utah sales tax bond is a type of license surety bond that creates a financial guarantee between a business and the State Tax Commission.
Some businesses with a history of incomplete or late tax payments may be required to be bonded when reinstated or registering for a new tax license.
How Much Do Sales Tax Bonds Cost in Utah?
Utah sales tax bonds cost a small percentage of the total bond amount based on credit score — typically 1% to 10%. However, with a strong personal credit score, you could pay a rate as low as 1.5–2%.
For example, a $10,000 sales tax bond starts at $150 for highly qualified applicants. Apply now to get your free quote!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Utah Sales Tax Bond Work?
A Utah sales and use tax bond creates a legal contract between these three parties:
- Principal: The business owner(s) filing the bond
- Obligee: The Utah State Tax Commission requiring the bond
- Surety: The provider issuing the bond
The Commission may require this bond to guarantee full and timely payment of all owed sales and use taxes. If you fail to do so, the surety will pay valid claims then seek repayment for taxes, penalties and interest from the principal.
Who Needs a Sales Tax Bond?
Businesses that sell tangible personal property, electronically transferred products, or services for storage, use, or consumption in Utah need to pay sales taxes if:
- Annual gross revenue exceeds $100,000
- Annual transactions exceed 200
If any owner of your business has a history of late sales tax payments, you may be required to file a surety bond before receiving a new sales tax license.
How Do I Get a Sales Tax Bond in Utah?
Submit a quick application form to get your free Utah sales tax bond quote. We’ll follow up within one business day or less.
Once you receive your quote invoice, you can purchase the bond online 24/7. We’ll email your official bond documentation minutes after purchase.
How Fast Can I Get My Bond?
We process and deliver most bonds same-day Mon–Fri. Submit your no-obligation quote request today to get started.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get a sales tax bond with bad credit! Apply now to see if you qualify.
Keep in mind that poor credit will result in a higher bond premium. Learn more about how credit score impacts bond pricing here.
How Do I Renew My Sales Tax Bond?
To renew your Utah tax bond, simply pay your annual renewal premium. These bonds are continuous until cancelled, so as long as you pay the premium, the bond will remain active.
The surety can cancel the bond by providing 30-day’s written notice to the Director of the Taxpayer Services Division. Avoid bond claims to prevent cancellation.
How to Get a Sales Tax Number in Utah?
You can acquire your Utah sales tax number by registering through the Taxpayer Access Point (TAP) system.
You’ll receive an email with your tax license information. Then, you can set up a TAP account where you’ll file and pay your taxes.
If the Commission requires a surety bond, you must purchase and file the bond before they’ll issue your sales tax number.
