A Texas sales tax bond, formally known as a Continuous Bond of Seller, is a financial guarantee required by the Texas Comptroller of Public Accounts to ensure that a business will properly remit all sales taxes owed to the state and comply with applicable tax regulations. This bond is generally required for entities engaged in taxable retail activity—such as retailers, mixed beverage providers, or any business selling more than two taxable items within a 12-month period—and may also be imposed if a business becomes delinquent after obtaining a sales tax permit.
The Comptroller determines the specific bond amount, which must be no less than $100,000 or four times the business’s average monthly tax liability, whichever is greater.
Some industries, particularly those dealing in mixed beverages, may be required to secure a larger bond or an additional gross receipts tax bond.
To secure the bond, a business must engage a surety company licensed to operate in Texas, complete the necessary application and underwriting process, sign an indemnity agreement, and execute the official Continuous Bond of Seller (Sales Tax) form as prescribed by the Comptroller.
Summary: How to get one
- Apply through a licensed surety bond company.
- Fill out an application and provide business/financial info.
- Sign an indemnity agreement.
- The surety company issues the bond (Form 01-752) for Comptroller approval
How to get a Texas sales tax bond