Los Angeles California Parking Occupancy Tax Bond
Eager to know the details of this surety bond? Read on!
What is a Los Angeles Parking Occupancy Tax Bond?
Auto Park Operators are required to obtain this bond and file it to the Office of Finance. The purpose of this surety bond is to ensure that the auto park operator will promptly pay the Parking Occupancy Tax (POT), penalties, and fees due to the City of Los Angeles.
This requirement is in pursuance of Section 21.15.6 of the Los Angeles Municipal Code.
How does a Los Angeles California Parking Occupancy Tax Bond work?
This bond is a three-party agreement. The parties involved are the following:
Principal – auto park operator
Obligee – the City of Los Angeles
Surety – surety bond provider
The Principal is the party who is required to pay the Parking Occupancy Tax (POT), penalties, and fees to the Obligee. The Obligee needs a financial guarantor in case the Principal fails to fulfill his or her obligations. The said financial guarantor is the Surety.
The Surety will ensure that the Obligee will be compensated if a valid bond claim is filed.
How much does a Los Angeles California Parking Occupancy Tax Bond cost?
This will depend on the auto park operator’s credit score. The bond cost will start at 1.5% of the bond amount for applicants who have excellent credit scores.
The bond amount will be based on the auto park operator’s annual or estimated gross receipts.
|BOND AMOUNT||ANNUAL OR ESTIMATED GROSS RECEIPTS|
|Less than $50,000||$5,000|
|$50,000 - $100,000||$10,000|
|$100,000.01 - $150,000||$15,000|
|$150,000.01 - $200,000||$20,000|
|$200,000.01 - $250,000||$25,000|
|$250,000.01 - $300,000||$30,000|
|$300,000.01 - $350,000||$35,000|
|$350,000.01 - $400,000||$40,000|
|$400,000.01 - $450,000||$45,000|
|$450,000.01 - $500,000||$50,000|
|$500,000.01 - $600,000||$60,000|
|$600,000.01 - $700,000||$70,000|
|$700,000.01 - $800,000||$80,000|
|$800,000.01 - $900,000||$90,000|
|$900,000.01 - $1,000,000||$100,000|
|$1,000,000.01 - $1,250,000||$125,000|
|$1,250,000.01 - $1,500,000||$150,000|
|$1,500,000.01 - $1,750,000||$175,000|
|$1,750,001.01 - $2,000,000||$200,000|
|$2,000,000.01 - $2,250,000||$225,000|
|$2,250,000.01 - $2,500,000||$250,000|
|$2,500,000.01 - $3,000,000||$300,000|
|$3,000,000.01 - $3,500,000||$350,000|
|$3,500,000.01 - $4,000,000||$450,000|
|$4,500,000.01 - $5,000,000||$500,000|
|$5,000,000.01 - $6,000,000||$600,000|
|Greater than $6,000,000.01||$700,000|
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Los Angeles California Parking Occupancy Tax Bond?
SEND US A BOND APPLICATION – We begin the bonding process with an application. You may send your application for this bond HERE!
UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
In order to avoid any delay, make sure that your requirements are complete prior to submitting them.
ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you!
Ready to apply for your surety bond? START HERE!