There are many different tax bonds. Some examples and information about those examples are below. There are many more types than those listed below, but these serve as good examples of tax bonds.

A highway use tax bond is generally required by a state entity. These bonds serve as compliance bonds, and they bind the principal person or entity to duties, obligations, and liabilities as outlined by state acts or ordinances. These bonds obligate the principal to pay taxes, penalties, and interest to the state as outlined by law.

Some states may require holders of highway use tax bonds to submit reports or furnish information to the state office requiring the bond as well. If required, this is considered an obligation of the bond.

These bonds are typically continuous, but if the obligee deems it necessary, a continuation certificate can be issued at renewal to prove that the bond is still in effect. The continuation certificate would be mailed to the principal. The principal would then be responsible for making sure that the obligee receives the certificate.

Highway use tax bonds generally have a 15-90 day cancellation provision, depending on the obligee’s preference.

Alcohol and liquor tax bonds are essentially the same things. Depending on the state requiring the bond, you will hear both terminologies used. These bonds are required by state obligees, and each state that might require the bond has a bond penalty (amount) that they will require. It is important to know the bond penalty of which you are being required.

Generally, these bonds are required of any company that has applied for a license to sell alcoholic beverages for consumption on the premises. Alcohol and liquor tax bonds hold the principal (bond holder) responsible for paying all taxes, fees, and other charges required by the state. These bonds serve to place the liability on the surety and principal so that the state is not held under this liability.

Depending on the state in which the bond is required, alcohol or liquor tax bonds can be considered continuous until cancelled, or they may require a continuation certificate. If a certificate is required, we will issue one upon receipt of the renewal payment. This certificate will be sent to the principal. It is then the responsibility of the principal to make sure that this certificate reaches the obligee as required.

A cigarette tax bond is a financial responsibility bond required in some states by a principal who has applied for a tax responsibility type that deems bonding necessary. The obligee (person or entity requiring the bond) should be able to tell you exactly what type of bond you need and what bond penalty (amount) is being required as well.

Cigarette tax bonds bind the principal as responsible for paying all amounts due to the obligee under the laws, statutes, ordinances, etc. for the state in which the bond is obtained.

Although these bonds are typically continuous, certain obligees may require continuation certificates at renewals. If this is the case, a certificate will be mailed to the principal upon receipt of renewal payment. It then becomes the responsibility of the principal to make sure that this certificate is successfully delivered to the correct obligee.

Fuel tax bonds are typically required of fuel distributors in certain states. The obligee (person/entity requiring the bond) will be a state-level office. Different states require different bond amounts, so it is important to contact the obligee in the correct department and determine what bond penalty is being required.

Fuel tax bonds generally guarantee that the principal (bond holder) will pay any taxes, fees, or other costs that the laws in the corresponding state require. These bonds bind the principal to pay the amounts that the state decides is correct, which is at the state’s disclosure. Sometimes, fuel tax bonds can also assure the obligee that the principal agrees to furnish any records or documents at any time for the state should they be requested.

Alcohol and liquor tax bonds are essentially the same things. Depending on the state requiring the bond, you will hear both terminologies used. These bonds are required by state obligees, and each state that might require the bond has a bond penalty (amount) that they will require. It is important to know the bond penalty of which you are being required.

Generally, these bonds are required of any company that has applied for a license to sell alcoholic beverages for consumption on the premises. Alcohol and liquor tax bonds hold the principal (bond holder) responsible for paying all taxes, fees, and other charges required by the state. These bonds serve to place the liability on the surety and principal so that the state is not held under this liability.

Depending on the state in which the bond is required, alcohol or liquor tax bonds can be considered continuous until cancelled, or they may require a continuation certificate. If a certificate is required, we will issue one upon receipt of the renewal payment. This certificate will be sent to the principal. It is then the responsibility of the principal to make sure that this certificate reaches the obligee as required.

Sales tax bonds are generally required of a principal if, in the instance that the state requires a bond be obtained, the principal is issued or has applied for a permit to do business as a seller and has been demanded to have security by the obligee. The obligee (person or entity requiring the bond) is usually at a state level for sales tax bonds. It is important to clarify with the obligee the bond penalty (amount) that is being required of the principal.

Sales tax bonds guarantee that the taxes, fees, penalties, and any other costs that might accrue for the principal will be paid promptly when demanded by the obligee. This protects the obligee against loss of these penalties. This bond also binds the principal to comply with all laws, acts, ordinances, etc. in relation to the permit which they have been granted or are applying for.

These bonds are typically continuous, but some states may require continuation certificates. If a certificate is required, it will be mailed to the principal upon receipt of the renewal payment. The principal then becomes responsible for delivering the certificate to the appropriate obligee address.