What are a Missouri Sales and Use Tax Bond?

It is a mandatory requirement for all Sales and Use Tax license applicants, as well as those who are renewing their licenses.

 

Missouri Sales and Use Tax Bond will be conditioned to ensure that the licensee will lawfully fulfill its tax obligations.

 

The surety bond will also serve as an assurance to the Missouri Department of Revenue that in case the licensee defaults or fails to pay the necessary due taxes, the Missouri Department of Revenue will be compensated through the surety bond.

 

The license prerequisite is in strict compliance with Section 144.087.1 of the Missouri Revised Statutes.

 

What is the amount of a Sales and Use Tax Bond?

Initial License Applicant – the bond amount should be an estimate of the license applicant’s tax liability for three months

 

Sales and Use Tax Computation:

Estimated Monthly Gross Sales (EMGS) X 7.203% (Average Tax Rate) = Monthly Tax

 

For example:

$9,000 (EMGS) X 7.203% = $648.27 (monthly tax)

$648.27 X 3 months = $1,944.81 (bond amount)

 

If the estimated sales tax liability for three months is less than $500, your minimum bond amount is $25. If your estimated sales tax liability is more than $500 for three months, you are required to submit a bond equal to the total amount, which is $1,944.81 or $1,940 (round off to the nearest $10) in our example.

 

License Renewals – the bond amount should be based on the tax liability from the previous 12 months

 

Once you have determined your bond amount, we will be able to give you your tailored bond premium.

 

If you know your bond amount now, you may get your FREE SURETY BOND QUOTE HERE!

 

How can I get a Sales and Use Tax Bond?

STEP 1: Apply for the bond

You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!

 

STEP 2: Underwriting

We will ask you for a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.

 

STEP 3: Bond execution

Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!

 

What are the bond conditions?

  • The surety bond agent or company should be authorized to conduct business in the State of Missouri
  • The Director of Revenue should approve the surety bond
  • The licensee is obligated to comply with the provisions of Section 144 of the Missouri Revised Statutes, the rules and regulations of the Missouri Department of Revenue, and all the other applicable rules
  • If the licensee commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
  • In case of cancellation, a 60-day notice is required

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