What is a Parking Tax Collection Bond?
In San Francisco and Los Angeles, operators of parking facilities and structures are required to post a parking tax collection bond, ensuring that all taxes are paid to the State.
Who Needs a California Parking Tax Collection Bond?
The Cities of San Francisco and Los Angeles both require auto park operators to purchase a California parking tax collection bond before being able to offer parking services to the public legally. In San Francisco, a $20,000 bond is required. In Los Angeles, the bond amount varies.
Why Do I Need a California Parking Tax Collection Bond?
The California parking tax collection bond is designed to protect the interests of the city, county, and state governments.
In Los Angeles, parking facility operators agree to:
- Collect the required parking occupancy taxes
- Report the total amount of fees charged promptly
- Pay the full amount of city occupancy taxes due
In San Francisco, parking facility operators agree to:
- Pay all fees owed to the San Francisco Tax Collector promptly and compliance with Article 6 of the San Francisco Business and Tax Regulations Code
- Comply with Article 9 of the San Francisco Business and Tax Regulations Code, which imposes taxes on the rent of every occupancy of parking space in the facility
- Satisfy the regulations controlling equipment requirements and compliance fees
The parking tax collection bond protects city agencies from financial losses that result from a failure of the operator to comply with all city and state regulations.
How Much Does a California Parking Tax Collection Bond Cost?
Regardless of whether the bond is required in Los Angeles or San Francisco, these bonds are subject to underwriting. Therefore, the cost of the bond varies based on the principal’s credit rating. Additionally, the Los Angeles parking tax collection bond will vary based upon the details of the particular business.
Get Started Today!
To operate a parking structure in Los Angeles or San Francisco, you must first purchase a parking tax collection bond. Don’t delay your application.